Jewellery Store - Ordinary Price Claims

The Competition Bureau initiated an inquiry on May 3, 2002 into allegations that a jewellery retailer made false or misleading representation to the public regarding its own prices for various articles of jewellery.

Under subsection 74.01 (3) of the Competition Act, it is reviewable conduct to represent a price as the seller's own ordinary selling price, where the seller has not sold a substantial volume of the product at that price, or offered the product for sale at that price in good faith for a substantial period of time. Such representations directly influence consumers' purchasing decisions and lure customers away from legitimate competitors.

The company under inquiry has affirmed that its advertising practices were brought into compliance with the relevant provisions of the Act shortly after they became aware of the Bureau's concerns and also provided a written assurance of compliance regarding all future marketing practices.

The Commissioner, having regard to various factors including the size and scope of the operation, decided against pursuing this
matter further.

This inquiry was discontinued on December 2, 2003.

(177516)