Competition Bureau Investigating Leon’s and The Brick for Alleged Deceptive Marketing

Competition Bureau Investigating Leon’s and The Brick for Alleged Deceptive Marketing
A customer walks through a Leon's store in Toronto on Nov. 12, 2012. The Canadian Press/Chris Young
Chandra Philip
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Furniture stores Leon’s and The Brick are being investigated for alleged deceptive marketing practices, Competition Bureau Canada (CCB) says.

The Brick is owned by Leon’s Furniture Ltd.

On Nov. 20, the CCB announced it had obtained a Federal Court order requiring the companies to provide written documents and records needed to advance the investigation.
The bureau said there were concerns the stores used promotional or sale “urgency cue claims” that lead customers to believe an item is in short supply.

“When untrue, they can mislead consumers into making purchases they might not have otherwise made, or rushing them into purchases without considering competitive offers,” the CCB said.

The bureau is also investigating whether the stores inflated regular prices to make it look like customers were getting a better deal during sales or promotions.

Also being investigated are alleged marketing practices such as sales claims that don’t specify the amount of discount and displaying items in a distinct font colour that could create a false impression that customers are benefiting from a sale.

The bureau said there is no conclusion of wrongdoing by Leon’s or The Brick at this time.

Leon’s told The Epoch Times in an emailed statement that the court order is a standard procedure during CCB investigations.

“Leon’s has been a part of Canadian households for 115 years, and The Brick for 53,” Audrey Hyams Romoff, corporate spokesperson for Leon’s and The Brick, said in the statement.

Romoff said both companies provide excellent value to consumers with their products and prices.

“To further their compliance efforts, both Leon’s and The Brick have established longstanding protocols to meet advertising standards,” she said in the release.

The email also said both companies are committed to complying with the regulatory requirements and are cooperating with the bureau’s investigation.

The Brick, founded in 1971, has over 210 locations across Canada and seven distribution centres, according to its website. It is publicly traded on the Toronto Stock Exchange.
Leon’s was founded in 1909 in southern Ontario, starting as a general merchandise store, and today has over 80 locations. Leon’s acquired The Brick in 2013 in a $700 million deal.