Canadian Tire Corp. Ltd. has been ordered to pay nearly $1.3 million after pleading guilty to false advertising charges linked to misleading sale pricing in Quebec. The ruling follows a detailed investigation by the province’s consumer protection authority into how discounted prices were presented to consumers.
The case has renewed attention on pricing transparency in retail promotions and comes amid broader scrutiny of how major retailers advertise discounts and time-sensitive deals. Alongside the legal outcome, separate investigations into retail pricing practices have also raised questions about how consumers interpret advertised savings and promotional offers.
Canadian Tire False Advertising Case: Key Facts, Charges and Consumer Impact
- Canadian Tire pleaded guilty to 74 counts of violating Quebec’s Consumer Protection Act related to false advertising.
- The company was fined nearly $1.3 million, including legal costs and fees.
- The investigation covered a six-month period between April and October 2021.
- Quebec’s Office de la protection du consommateur (OPC) found certain products were advertised using inflated reference prices that created the impression of deeper discounts.
- Seven products were examined, with Canadian Tire admitting liability for five.
- The court-approved settlement requires the company to pay fines within 12 months.
- Canadian Tire stated that no customers were overcharged and that the matter has now been concluded.
Court Decision and Settlement Details
The outcome followed a negotiated settlement after Canadian Tire initially pleaded not guilty to the charges. Crown prosecutor Jérôme Dussault confirmed that an agreement was later reached between the parties. Quebec court Judge Simon Lavoie approved the settlement at the Montreal courthouse.
Penalties ranged from approximately $15,625 to $18,150 per count, bringing the total fine to just under $1.3 million. The charges were filed after Quebec’s consumer protection office determined that advertising practices could mislead consumers regarding the true extent of discounts.
The case highlights the requirements of Quebec’s Consumer Protection Act, including provisions such as section 225(b), which prohibit merchants from falsely representing regular prices when promoting discounted goods.
Investigation Findings: How Pricing Practices Were Examined
The Office de la protection du consommateur conducted its investigation in 2021, reviewing pricing information displayed in Canadian Tire flyers, on its website, and in three stores in the Montreal area. OPC spokesperson Charles Tanguay explained that advertising materials featured inflated reference prices that created the appearance of larger discounts.
According to the investigation, the products targeted were rarely, if ever, sold at the advertised regular price. In physical stores, investigators also found that the regular price was seldom displayed, raising concerns about how consumers perceived the value of advertised sales.
The investigation concluded that the pricing approach gave the impression of significant savings even when those regular prices were not commonly used in actual sales.
Products Included in the Investigation
The consumer protection office examined seven specific products during the six-month period. Canadian Tire admitted guilt in relation to advertising practices involving five of them:
- Henckels knife sets
- Cuisinart knife sets
- Lagostina cookware sets
- Heritage cookware sets
- DeWalt cordless drill
These products were promoted through discounts expressed either as percentages or dollar reductions based on reference prices that were rarely applied in practice.
Canadian Tire’s Response to the Ruling
In an emailed statement, Canadian Tire spokesperson Stephanie Nadalin said the charges related to advertising practices involving five products over a six-month period several years ago. The company emphasized that no customers were overcharged and confirmed that the matter is now resolved.
Under the settlement terms, Canadian Tire must pay the imposed fines within the next 12 months.
The ruling also comes shortly before Canadian Tire Corporation is scheduled to release its fourth-quarter and full-year financial results, expected on February 13.
Wider Retail Pricing Debate: Marketplace Investigation Into Sale Practices
The Canadian Tire case arrives amid broader scrutiny of retail discount strategies following an investigation by CBC’s Marketplace into pricing practices at Canadian Tire and Old Navy. The investigation tracked product prices over several months to determine whether advertised sales reflected genuine savings.
At Old Navy, Marketplace monitored ten clothing items between May and December 2024 and found that several products were on sale for a significant portion of that period, with some items never listed at their regular price. Experts, including University of British Columbia associate professor Ying Zhu, said such tactics can create urgency and influence consumer purchasing decisions through psychological pressure. Marketing expert Brad Davis also criticized marketing tactics that rely on repeated sale messaging.
Old Navy Canada and Gap Canada are facing a potential class-action lawsuit filed at the Supreme Court of British Columbia alleging misrepresentation of undiscounted prices. The allegations have not been certified or tested in court. In a separate case in the United States, a settlement related to alleged false reference prices was approved without any admission of liability by Old Navy.
Price Tracking During Major Sales Events
Marketplace also tracked 46 Canadian Tire products between June 2024 and January 2025, comparing prices during major shopping events such as early Black Friday, Black Friday week, Cyber Monday, and Boxing Day.
The analysis found that while Black Friday week often delivered the lowest prices among tracked items, many early Black Friday and other promotional deals were equal to or higher than prices offered earlier in the year. In some cases, products advertised during major sale events were cheaper during previous promotions.
Data reviewed through price-tracking analysis showed:
| Sales Event | Lowest Price Occurrence |
| Black Friday products | 100% lowest price of the year |
| Early Black Friday products | 21% lowest price |
| Boxing Day products | 6% lowest price |
| Cyber Monday products | Less than 1% lowest price |
Experts advised consumers not to rush purchases solely due to countdown timers or limited-time messaging and instead focus on whether the price represents fair value.
Consumer Protection Rules and Enforcement Challenges
Canada’s federal Competition Act prohibits misleading marketing practices, including false claims about discounts or time-limited offers. According to the Competition Bureau, 3,427 complaints related to deceptive marketing practices were filed during the 2023–2024 fiscal year, several involving misleading sales claims or fake urgency cues.
Officials noted that investigations are required before determining whether a company has breached the law, and companies named in complaints are not publicly disclosed. Experts have also suggested that enforcement challenges remain due to limited regulatory resources.
Transparency in Pricing and the Growing Importance of Consumer Awareness
The Canadian Tire ruling, together with broader investigations into retail pricing strategies, highlights the increasing importance of transparency in promotional advertising. The case serves as a reminder that advertised savings must reflect genuine price reductions and that consumer trust depends on clear and accurate communication.
As consumers become more aware of pricing tactics and regulators continue to examine promotional claims, retailers face growing pressure to ensure that discount messaging aligns with actual pricing history and consumer protection laws.
FAQs on Canadian Tire False Advertising Fine and Retail Discount Practices
1. Why was Canadian Tire fined nearly $1.3 million in Quebec?
Canadian Tire pleaded guilty to 74 false advertising charges after investigators found certain products were promoted with inflated regular prices, creating misleading impressions of discounts under Quebec’s Consumer Protection Act.
2. Which products were involved in the Canadian Tire false advertising case?
The case involved Henckels and Cuisinart knife sets, Lagostina and Heritage cookware sets, and a DeWalt cordless drill, where advertised discounts were based on rarely used regular prices.
3. Did Canadian Tire overcharge customers in this case?
No. Canadian Tire stated that customers were not overcharged, and the case related specifically to advertising practices and how discounts and reference prices were presented to consumers.
4. What did the Marketplace investigation reveal about retail sales pricing?
The investigation found some products at Canadian Tire and Old Navy were frequently on sale, with certain promotional prices equal to or higher than earlier discounts, raising concerns about perceived savings.
5. What should consumers consider before buying during major sale events?
Experts advise focusing on the actual price instead of advertised savings, tracking prices over time, and avoiding pressure from limited-time offers since discounts often return during future promotions.
