Leon’s Furniture Limited and its subsidiary, The Brick Warehouse LP, are under investigation for alleged “deceptive marketing” practices.
The Competition Bureau, an independent law enforcement agency that advocates for Canadian consumers, said in a statement that it has obtained a court order to gather more information.
“The order, granted by the Federal Court, requires Leon’s and The Brick to produce records and written information that are relevant to the Bureau’s investigation,” it stated.
“The Bureau is looking to determine if Leon’s and The Brick’s marketing practices raise concerns under the deceptive marketing provisions of the Competition Act.”
The Competition Bureau said it’s investigating Leon’s for several allegations.
One allegation is urgency cue claims, in which the end dates of sales or limited-time promotions may be false or misleading.
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“Urgency cue claims such as ‘countdown clocks’ and ‘limited time only’ could be false or misleading if they create the impression that consumers must purchase a product quickly prior to the end of the promotion when, in fact, the promotion is renewed or replaced by another promotion,” explained the agency.
Both companies are also being investigated for the possibility that prices were inflated when advertising savings.
Another allegation includes deceptive sale claims that don’t specify the discount amount. The agency alleges that prices were “displayed in a distinct font colour, which may create the false or misleading impression that people are benefitting from a sale.”
“There is no conclusion of wrongdoing at this time,” the Competition Bureau added.
The Brick was founded in 1971 in Edmonton and now has over 209 locations and seven distribution centres.
Leon’s Furniture Limited acquired the company in 2013 for $700 million. Combined, both companies operate one of the largest networks of home furniture, appliance, electronics, and mattress stores nationwide.