Suzy Shier Fined $300,000 for Misleading Advertising

OTTAWA, July 17, 1995 — George N. Addy, Director of Investigation and Research, under the Competition Act, announced today that the women's clothing retailer SUZY SHIER LIMITED, which operates several stores across Canada under the names Suzy Shier, La Senza and L.A. Express, has pleaded guilty to a charge laid under paragraph 52(1)(d) of the Competition Act. The company was fined $300,000 in the Criminal Division of the Court of Quebec in Montreal and the court issued an order prohibiting the company, as well as its directors and administrators, from engaging in such misleading promotional practices.

The charge centred on the fact that SUZY SHIER was offering its clothing at discount prices, with price tags indicating the original price, the special price and the amount of the discount. In-store signs also advertised discounts of 50% to 70% off originally-marked prices. However, it was established that the original price indicated on the tag did not represent the regular price, since the clothing was never sold for this amount. The investigation further revealed that the articles of clothing were already tagged "Special" before even entering the store.

"The use of misleading comparison prices hurts consumers and makes it difficult to maintain healthy competition among retailers. This case demonstrates once again the commitment of the Bureau of Competition Policy to discourage such practices in the Canadian market," stated Mr. Addy.

Paragraph 52(1)(d) of the Act prohibits misleading representations to the public concerning the price at which a product is ordinarily sold.

For further information, please contact:
Jim Walker
819-997-1212