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ARTICLE · 04 DECEMBER 2014

Advertising 2.0: Digital Economy Is On Competition Bureau’s Radar

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In a speech last week, the Senior Deputy Commissioner of Competition indicated that the digital economy is squarely on the Competition Bureau’s radar.

CanadaAntitrust/Competition Law
Imran Ahmad
Imran Ahmad
Christopher Hersh
Christopher Hersh
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In a speech last week, the Senior Deputy Commissioner of Competition (the "SDC") indicated that the digital economy is squarely on the Competition Bureau's (the "Bureau") radar and that the agency will be vigilant in terms of ensuring that digital and mobile advertisements comply with the Competition Act.

Truth in Online Advertising

Recognizing that the rapid growth in e-commerce is being driven in large part by increased consumer use of apps and greater reliance on mobile payments, the SDC stated that the Bureau's position is that "innovation in digital advertising must not compromise a consumer's right to truth in advertising."

In other words, the rules regarding misleading advertising apply equally to online promotional activities. In this regard, the Bureau is focussed on misrepresentations that create a general impression to consumers that is false or misleading because the advertiser has hidden key terms that affect the price ultimately paid by consumers.

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