Identifying Deceptive Advertising
Deceptive advertising includes representations that are false in a material respect, representations that create a misleading general impression, and omissions of material facts. The test is whether a reasonable consumer would be misled.
Common examples include performance claims that cannot be substantiated, before-and-after images that are not representative, 'regular price' comparisons to inflated reference prices, and hidden fees that are not disclosed until checkout.
The Legal Framework
Deceptive advertising may be addressed under several statutes. The Competition Act (federal) contains both criminal and civil provisions. The Consumer Protection Act, 2002 (Ontario) classifies false, misleading, or deceptive representations as unfair practices giving rise to rescission and damages. Advertising Standards Canada administers a voluntary code and handles complaints about conformance.
A consumer typically cannot sue directly under the Competition Act civil provisions, but a Bureau finding can support a private claim under the CPA. Rescission within one year of entering the agreement is the main private remedy in Ontario.
Complaint Channels
The Competition Bureau accepts online complaints at competitionbureau.gc.ca. Consumer Protection Ontario accepts complaints about Ontario suppliers at ontario.ca/consumerprotection. Advertising Standards Canada accepts complaints at adstandards.ca.
For private recovery, a rescission notice may be sent to the supplier followed by a Small Claims Court action if the supplier does not refund. The one-year limit from entering the agreement applies to a CPA rescission claim.