The Competition Bureau says it has advanced an investigation into furniture retailer Leon’s and its subsidiary The Brick over deceptive marketing practices.
The investigation is related to several allegations, including that the retailers marketed false or misleading information about the end of sales or limited-time-only promotions, and that the companies potentially inflated the regular price of items when making savings claims.
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It’s also looking into allegations that — when claiming that they were having a sales promotion — the retailers didn’t specify how much the discount was, or they displayed prices in a font that gave a false or misleading impression that customers would benefit from the sale.
The Competition Bureau first launched in investigation into the furniture retailers in 2013 over deceptive marketing allegations, which revealed that customers were required to pay upfront fees for “buy now, pay later” promotions.
The agency reached an agreement with the companies in 2018. Both retailers agreed to each donate $750,000 worth of home furnishings over two years to charities approved by the regulator.
Leon’s and The Brick also agreed at that time to adhere to the Bureau’s guidance on the proper use of disclaimers in advertising and the disclosure of fees.
“The Bureau’s current investigation is completely unrelated to the previous investigations into ‘buy now, pay later’ promotions, and financing plans,” Competition Bureau spokesperson Marianne Blondin confirmed to CBC News.
“It is important to note that there is no conclusion of wrongdoing at this time,” she added.
A spokesperson for Leon’s and The Brick said the company was co-operating with the Bureau’s investigation and complying with all regulatory requirements.
