Brief

Summary:

A Competition Bureau investigation found that The Dufresne Group Inc. (TDG) and its affiliates, including Dufresne Furniture and Appliances and Ashley HomeStores, engaged in deceptive marketing practices in Canada. The companies were found to have inflated regular prices on certain products and then advertised them at discounted prices, creating a misleading impression of significant savings for consumers. Additionally, the investigation found that TDG made false or misleading claims about limited-time offers. As a result, TDG agrees to pay a $3.25 million penalty, commit to compliance with the Competition Act, and establish a corporate compliance program to promote compliance with the law.

A Competition Bureau investigation concluded that The Dufresne Group Inc. (TDG) and its affiliates, better known for their retail brands Dufresne Furniture and Appliances and certain Ashley HomeStores, offered certain products at inflated regular prices and then advertised them at big discounts, suggesting significant savings to consumers.

September 27, 2023 – GATINEAU, QC – Competition Bureau

A Competition Bureau investigation concluded that The Dufresne Group Inc. (TDG) and its affiliates, better known for their retail brands Dufresne Furniture and Appliances and certain Ashley HomeStores, offered certain products at inflated regular prices and then advertised them at big discounts, suggesting significant savings to consumers.

The Bureau also found that they made marketing claims to consumers that gave the false or misleading impression that deals on certain products would no longer be available after a certain time, when this was not the case. For example, the deal was still available after a countdown timer expired.

The companies made both types of claims on their websites, in-store and via various advertising channels.

The Bureau acknowledges TDG’s voluntary cooperation in resolving this matter.

As part of this settlement, The Dufresne Group Inc., and its affiliates (TDG Furniture Inc., DFA Operations Inc., DF Swan Ltd. and Furniture Investment Group Inc.) agree to:

  • pay a $3.25 million penalty and $100,000 towards the Competition Bureau’s costs to resolve concerns over their marketing practices in Canada
  • commit to have their marketing practices comply with the Competition Act
  • establish and maintain a corporate compliance program to promote compliance with the law

“Tactics that pressure consumers to make a purchase quickly, like limited time offers, must be truthful. All businesses in Canada should review their marketing practices and make sure they comply with the law. Taking action against deceptive marketing practices remains one of our highest priorities.”

Matthew Boswell
Commissioner of Competition

The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.

Highlights content goes here...

Summary:

The Competition Bureau has conducted an investigation into The Dufresne Group Inc. (TDG) and its affiliates, which operate retail brands Dufresne Furniture and Appliances and certain Ashley HomeStores. The investigation found that the companies offered certain products at inflated regular prices and then advertised them at big discounts, creating the impression of significant savings to consumers.

Furthermore, the Bureau discovered that the companies made marketing claims to consumers that gave a false or misleading impression that deals on specific products would no longer be available after a certain time period. For instance, the deal remained available even after a countdown timer expired. These deceptive marketing practices were observed on the companies’ websites, in-store, and through various advertising channels.

As a result of the investigation, TDG and its affiliates have agreed to settle the matter by paying a penalty of $3.25 million and $100,000 towards the Competition Bureau’s costs to resolve concerns over their marketing practices in Canada. Additionally, the companies have committed to ensuring their marketing practices comply with the Competition Act and have established and will maintain a corporate compliance program to promote compliance with the law.

The Competition Bureau emphasizes the importance of truthful marketing practices, stating that tactics that pressure consumers to make a purchase quickly, such as limited-time offers, must be accurate. This settlement serves as a reminder to all businesses in Canada to review their marketing practices and ensure they conform to the law. The Competition Bureau remains committed to taking action against deceptive marketing practices, which it considers a high priority.

Competition Bureau

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