Competition Bureau Takes Aim At Misleading Donation Bins

The Competition Bureau has sent warning letters to operators of clothing donation bins in the Montréal area requiring them to make corrections to the information on their bins. This follows similar action in Vancouver in 2014, and an accompanying Advisory.

The Bureau is concerned with for-profit businesses leaving the false impression that consumers are giving to charity. For example, certain bins may use symbols or logos of charitable organizations implying that proceeds from donations go to charitable organizations or that the donations are collected by charities or not-for-profits, when in fact the collections are for-profit, with only a small percentage of proceeds going to charity. The 2014 Advisory notes that bins promoting "in support of ..." may not be giving the consumer the best information to make an informed decision. The misimpression diverts donations from charities, and endangers the ability of charities to collect.