Discount Deception: Demystifying Ordinary Selling Price Claims Under The Canadian Competition Act

In the current economic environment, many businesses may feel pressured to get creative with their marketing and pricing strategies to remain competitive. For example, promotional terms such as "Sale", "Marked Down" or "End of Line" are frequently used in marketing campaigns to attract consumer attention and boost sales. While these representations may offer short term commercial advantages, businesses must exercise caution, as the Competition Bureau (the Bureau) is increasingly cracking down on potentially misleading pricing practices, particularly where claims may misrepresent the nature and duration of promotions and ordinary selling prices.

The compliance risk in this area extends across all sectors, including apparel, consumer electronics, automotive, food, health and medical devices industries. Any business that makes price comparison claims must ensure strict adherence to the ordinary selling price (OSP) provisions of the Competition Act.¹ Failing to do so