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ARTICLE · 13 MAY 2019

Fake Discount Case Settled Against Hudson's Bay Company

Affleck Greene McMurtry LLP
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We previously wrote about an application brought by Canada's Competition Bureau against Hudson's Bay Company, a department store retailer, for allegedly inflating the regular price of mattresses just so that it could offer them on sale.

CanadaAntitrust/Competition Law
Michael Binetti
Michael Binetti
Annie (Qurrat-Ul-Ain) Tayyab
Annie (Qurrat-Ul-Ain) Tayyab
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We previously wrote about an application brought by Canada's Competition Bureau against Hudson's Bay Company (HBC), a department store retailer, for allegedly inflating the regular price of mattresses just so that it could offer them on sale (see article Competition Bureau Takes Action On Mattresses). This conduct is known as "high-low" pricing. The Competition Bureau also alleged that HBC was having inventory clearance sales but was in reality, just ordering more inventory to fill sales.

Canada's Competition Act prohibits retailers from making reference to an inflated regular price when advertising sales. When comparisons are made between a regular price and a sale price, they must be valid.

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