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ARTICLE · 15 SEPTEMBER 2016

Canada Sees Increase In Class Action Lawsuits For Misleading Claims

Smart & Biggar
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Several recent cases suggest that the most likely group to take action against misleading advertising may no longer be regulators or competitors, but disgruntled consumers acting as a class.

CanadaMedia, Telecoms, IT, Entertainment
Bereskin & Parr LLP
Bereskin & Parr LLP
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Several recent cases suggest that the most likely group to take action against misleading advertising may no longer be regulators or competitors, but disgruntled consumers acting as a class.

Historically, punishment for misleading advertising and unsubstantiated product or service claims were meted out by regulators or competitors. Regulator action for misleading advertising and unsubstantiated product claims typically comes under the Competition Act and is subject to various measures, including steep penalties of up to C$15 million for repeat offenders. The act prohibits false and misleading representations and also requires that performance, efficacy and length of life claims be supported with adequate and proper testing before they are made.

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