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Archived — Major clothing retailer agrees to correct misleading gift card promotions

OTTAWA, March 31, 2010 — The Competition Bureau has reached an agreement with fashion retailer Mexx Canada and its parent company Liz Claiborne Canada Inc., requiring the companies to properly disclose all conditions relating to gift card promotions being offered in Mexx locations across Canada. Mexx and Liz Claiborne have now submitted an undertaking to resolve the Bureau's competition concerns.

Under the terms of the undertaking, Mexx and Liz Claiborne will take corrective action to ensure that the terms and conditions of all promotions are clearly and prominently displayed in all of their representations to the public, including all advertising and promotional materials, in-store signage and oral representations made to customers. Liz Claiborne will also be required to develop a corporate compliance program in order to ensure that future promotions do not violate the false or misleading advertising provisions of the Competition Act.

An investigation by the Bureau found that a minimum purchase requirement was necessary in order to redeem Mexx gift cards for a particular promotion, but that this condition was not properly disclosed to the public during the promotion.

When informed of the Bureau's concerns, Mexx and Liz Claiborne responded immediately by displaying the terms and conditions of the promotions in question prominently in their representations to customers.

The Bureau reminds retailers of the importance of clearly disclosing all terms and conditions to their customers.

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