The Competition Bureau has levied more than $4.5 million in
administrative penalties for
misleading advertising since launching the first volume of its
bulletin on deceptive marketing practices last
June.
Recently, the target has been
disclaimers, as telecom provider
Comwave Networks Inc. entered into a consent agreement with the
Bureau for making various representations about the price and
features of its home phone and internet services that the
Bureau concluded were misleading.
The use of disclaimers in advertising raises unique competition
law issues. While they are designed to clarify or limit the
message, the size and location of the information is such that they
often do not have the intended effect. A disclaimer which adds
information to the main message will not generally offend the
misleading advertising provisions of the Competition Act.
However, where a disclaimer is used to contradict, restrict or
negate the main message, the potential to mislead
