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Do not make false or misleading claims to promote your product, service or business interest.

Many businesses have had to quickly create an online presence or e-shop in response to the pandemic lock-downs that have impacted their usual way of doing business.

However, in the rush to ‘setup shop’ you need to ensure your website and marketing materials do not make false or misleading claims to promote your product, service or business interest. This is prohibited under the Competition Act (Canada) which contains both civil and criminal misleading representation provisions.

This article on newswire entitled “Canadian company fined $15 million for subscription trap scam” (https://lnkd.in/eVzvrJn), should act as a cautionary tale of the potential penalties involved.

Here the company in question ‘used claims such as “risk-free trial” and “just pay a small shipping fee” to mislead consumers. The real cost and nature of the offers were not disclosed on the company’s websites in a way that was clear and apparent for consumers.’ and was ‘fined $15 million and is also subject to a ten-year court order prohibiting it from any direct or indirect involvement in promoting deceptive trial offers.’