Leon’s and The Brick Under Investigation for Alleged Misleading Marketing Practices
Competition Bureau Investigates Leon’s and The Brick for Alleged Misleading Marketing Practices.
The Competition Bureau has secured a Federal Court order as part of its investigation into whether Leon’s Furniture Ltd. and its subsidiary, The Brick, engaged in deceptive marketing practices.
The Bureau revealed on Wednesday that its ongoing inquiry focuses on three specific marketing strategies used by the Canadian furniture retailers:
- Sales claims that lack clear discount amounts or use visually misleading font styles and colours to create the impression of greater savings.
- Inflated regular prices when promoting discounts, potentially overstating the value of the deals offered.
- Urgency cues, such as countdown clocks or “limited time only” promotions, which may give false impressions about the exclusivity or time sensitivity of the deals.
The investigation, which began on August 6, has not yet concluded whether Leon’s or The Brick violated any laws. However, the court order allows the Bureau to obtain additional records and written information to aid its probe.
Leon’s and The Brick described the order as “standard procedure for inquiries of this nature” and stated their commitment to full cooperation with the investigation.
“Both companies offer consumers great products at great prices, providing excellent value,” said Audrey Hyams Romoff, spokesperson for the retailers. “To further their compliance efforts, both Leon’s and The Brick have established long-standing protocols to meet advertising standards.”
Leon’s, established in 1909 with 85 stores, and The Brick, founded in 1971 with 209 locations, specialize in furniture, mattresses, electronics, and appliances. The two companies became part of the same corporate family in 2012 when Leon’s acquired The Brick for $700 million.
The Competition Bureau has prioritized cracking down on deceptive marketing practices in recent years. In September, it secured a $38.9-million judgment against Cineplex Inc. for misleading ticket pricing, a decision Cineplex is contesting. The Bureau has also pursued cases against companies like SiriusXM Canada and Discount Car & Truck Rentals Ltd. for “drip pricing,” where hidden fees inflate the final cost of purchases.
The investigation into Leon’s and The Brick reflects the watchdog’s continued focus on ensuring fair and transparent marketing practices in Canada.
