Dalfen's Limited Fined $100 000 for One Count of Misleading Advertising

OTTAWA, April 10, 1995 — George N. Addy, Director of Investigation and Research under the Competition Act, announced today that Dalfen's Limited pleaded guilty to one charge under 52(1)(d) of the Act and was fined $100,000 in the Provincial Court of Newfoundland in St. John's. The court also issued an Order against the company and its officers and directors, prohibiting them from repeating misleading promotional practices.

The province-wide charge related to advertisements broadcast over radio and television stations throughout Newfoundland between August and December, 1990, regarding a "closing out sale" of the inventory of all Dalfen's Limited retail stores in Newfoundland and offered savings ranging from "15% to 90%" off wearing apparel. It was determined that these savings claims were untrue.

• "This case sends a clear message to business and consumers that misleading representations concerning the price at which products are ordinarily sold contravene the Competition Act," Mr.'Addy said. "Before using a comparison price, a retailer should ensure that a substantial proportion of the product has been sold at that price."

Paragraph 52(1)(d) of the Act prohibits misrepresentations of the prices at which products are ordinarily sold.

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

Ron Urquhart
902-426-9734