Canada’s Competition Tribunal is taking legal action against Hudson’s Bay Co., accusing the retailer of misleading consumers with deceptive pricing practices.
The tribunal said it uncovered during a recent investigation that HBC has been offering “sleep sets,” or mattresses and box springs, at “grossly inflated” regular prices in order to turn around and discount the products with the suggestion of a “significant deal.”
“Today’s application to the Competition Tribunal is about providing consumers with accurate and truthful information when making purchasing decisions,” said the tribunal’s commissioner, John Pecman. “Savings claims must always reflect real discounts.”
The tribunal noted that comparison discount claims are “powerful” marketing tools in retail because shoppers are looking for good deals, and is accusing HBC of making deceptive pricing claims throughout Canada since at least March 2013.
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“The bureau will continue to take all appropriate action in order to ensure that consumers are provided with honest information,” Pecman added.
An HBC spokeswoman said of the action: “We take compliance with all laws and regulations very seriously, and we believe our mattress pricing process is fair, competitive and in line with industry standards and the Competition Act. We disagree with the Competition Bureau’s position and will vigorously oppose the application to the Competition Tribunal.
“Hudson’s Bay offers an exceptional shopping experience, including top-of-the-line products and leading customer service. We are committed to providing our customers with great service and the best product at real value. This is considered a reviewable matter by the Competition Bureau, not an accusation that the company has committed an offense.”