Misleading Advertising And The Competition Act

The following is a synopsis of a presentation given at BLG's Marketing Law News Flashes Conference held on February 28, 2013:

2012 was characterised by a high level of activity with respect to the interpretation and enforcement of the misleading advertising provisions of the Federal Competition Act. As a result of the Supreme Court of Canada's 2012 decision in Richard v. Time, misleading advertising claims brought under the Competition Actwill almost certainly be judged from the perspective of the "credulous and inexperienced consumer" and will be based on the general impression first created by the text and layout of an advertisement. As described by the Supreme Court, the credulous and inexperienced consumer is not particularly experienced at detecting the falsehoods or subtleties found in commercial representations, has less than average intelligence, scepticism and curiosity and is not reasonably prudent, nor diligent, nor well-informed. The Commissioner of