Misleading advertising and other representations of sellers

Question

Explain misleading advertising and other representations of sellers?

Answer 1

The federal Competition Act prohibits misleading representations about the qualities of a product, its "regular" selling price, and warranties. The Act also makes certain selling practices offences, such as publishing test results or user testimonials that cannot be corroborated and have been used without permission of the testing agency or user, double ticketing, bait-and-switch advertising, pyramid selling and referral selling, and advertising an article or service at a lower price than that asked of the customer.

Ontario's Consumer Protection Act, 2002, makes it an unfair practice to make "a false, misleading, or deceptive consumer representation," and provides a long list of examples, including failure to reveal a material fact and making unconscionable representations. A consumer who is subjected to an unfair practice can terminate the contract and, where rescission is not possible, may recover any amount in excess of the fair value of goods or services received. The court may also award exemplary or punitive damages.