Source: The Epoch Times

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 court order from the Federal Court that requires the companies to provide written documents and records it requests to advance the investigation.
The bureau said there were concerns the stores used urgency cues on customers about promotions or sales. This is when a customer is led to believe an item is in short supply, CCB said on its website.

“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 website said.

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

The stores’ sales claims are also being examined, with the CCB saying that some claims had no indication of the amount of discount. It also says prices of an item were displayed in a distinct font colour that could create a false or misleading impression that consumers were benefiting from a sale.

The bureau said there were no conclusions 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 was 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 that both companies provided 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 that both companies were committed to complying with the regulatory requirements. They are cooperating with the bureau during the investigation, it said.

There are more than 210 locations of The Brick across Canada and seven distribution centres, according to its website. It has been around since 1971. The Brick is also publicly traded on the Toronto Stock Exchange.
Leon’s was founded in 1909 in southern Ontario and started off as a general merchandise store. The company acquired The Brick in 2013 in a $700 million deal.
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