Competition Bureau Stops Bogus Jewellery Sales

OTTAWA, December 20, 2002 — Two Ontario-based jewellery retail chains have agreed to stop deceiving consumers with misleading claims as a result of a Competition Bureau investigation.

A consent agreement filed today by the Commissioner of Competition with the Competition Tribunal requires the corporations and officers operating the retail chains Fine Gold Jewellers and The Diamond Co. to stop using deceptive practices to promote jewellery sales.

The Bureau found that the jewellery retailers deceived consumers about the value of their savings by continuously offering 50% discounts from their inflated regular prices of gold and diamond jewellery. The deceptive marketing practices provisions of the Competition Act provide a framework to sellers for making claims about regular prices. They are designed to ensure that when products are promoted at sale prices, consumers are not misled by reference to "inflated" regular prices.

"The Competition Act recognizes that regular price claims have a powerful effect on consumers," said Raymond Pierce, Deputy Commissioner, Competition Bureau. "The Bureau is committed to ensuring that consumers get the fair and accurate information they need to make informed purchasing decisions when they are shopping."

Under the terms of the consent agreement, the corporations and their officers have agreed to cease making any written or verbal representations relating to the regular selling price of products unless 50% of the products had been sold at the stated regular price within twelve months prior to making the claim. In addition, 1376535 Ontario Limited, Tadros & Tadros Limited and Ibrahim & Tadros Inc., Tadros and Mina Limited and their officers which operate the 19 retail stores in Ontario, have agreed to pay a $25,000 administrative penalty. The agreement will remain in force for 10 years.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For media enquiries, please contact:
Maureen McGrath
Senior Communications Advisor
Communications Branch
819-953-8982, or 613-296-2187 (cell)

For general enquiries, please contact:
Information Centre
Competition Bureau
1-800-348-5358