Turns out the stores that have been running ads for decades proclaiming bargain blowouts and telling shoppers “Don’t pay a cent” may have been exaggerating a little.
What happened: Furniture retailer Leon’s and its subsidiary The Brick are facing a probe from Canada’s Competition Bureau for alleged deceptive marketing practices, including:
- Not specifying the exact size of discounts during sales events,
- Inflating regular prices against sale prices to make deals look better, and
- Making promotions seem more time-sensitive than they really are.
The well-known use of the last tactic is perhaps best exemplified by an article from parody news site The Beaverton, entitled “The Brick celebrates first day in 25 years without sales event.”
Catch-up: It’s not the first time Leon’s and The Brick have caught heat for shady marketing. In 2012, The Brick paid $2 million in a class-action lawsuit for false advertising. And in 2018, both stores settled a prior bureau investigation into buy now, pay later promotions.
Why it matters: Back then, the Competition Bureau had less teeth than a newborn. The stores faced no fines, only having to each donate $750,000 in home furnishings to charity. A newly beefed-up bureau could now dole out a $10 million fine if it finds any wrongdoing.—QH