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ARTICLE · 09 JUNE 2014

Your Widget Is Better Than The Other Guy's? Prove It. Before You Say So In An Ad. Or Else...

Blaney McMurtry LLP
Blaney McMurtry LLP
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It is a different matter when a company asserts its product's superior performance in a commercial and only verifies the assertion after the commercial airs.

CanadaMedia, Telecoms, IT, Entertainment

Co-authored by Jessica Freiman

It's one thing to see a company falsely advertise its product with gross exaggerations – lose 10 pounds in two days with our supplement! Undo 40 years of wrinkles with one moisturizer!!

It would seem to be another matter entirely when a company asserts its product's superior performance in a commercial and only verifies the assertion after the commercial airs.

But in Canada, even if a company's claims about its product in its advertising turn out to be completely accurate, this can still land a business with a hefty Competition Act fine.

The problem? Violating the Competition Act's stringent testing requirements for products before advertising how they perform.

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