Competition Act

Marginal note:False or misleading representations

• 52 (1) No person shall, for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of promoting, directly or indirectly, any business interest, by any means whatever, knowingly or recklessly make a representation to the public that is false or misleading in a material respect.

• Marginal note:Proof of certain matters not required

  (1.1) For greater certainty, in establishing that subsection (1) was contravened, it is not necessary to prove that

  • (a) any person was deceived or misled;

  • (b) any member of the public to whom the representation was made was within Canada; or

  • (c) the representation was made in a place to which the public had access.

• Marginal note:Permitted representations

  (1.2) For greater certainty, in this section and in sections 52.01, 52.1, 74.01, 74.011 and 74.02, the making or sending of a representation includes permitting a representation to be made or sent.

• Marginal note:Drip pricing

  (1.3) For greater certainty, the making of a representation of a price that is not attainable due to fixed obligatory charges or fees constitutes a false or misleading representation, unless the obligatory charges or fees represent only an amount imposed by or under an Act of Parliament or the legislature of a province.

• Marginal note:Representations accompanying products

  (2) For the purposes of this section, a representation that is

  • (a) expressed on an article offered or displayed for sale or its wrapper or container,

  • (b) expressed on anything attached to, inserted in or accompanying an article offered or displayed for sale, its wrapper or container, or anything on which the article is mounted for display or sale,

  • (c) expressed on an in-store or other point-of-purchase display,

  • (d) made in the course of in-store or door-to-door selling to a person as ultimate user, or by communicating orally by any means of telecommunication to a person as ultimate user, or

  • (e) contained in or on anything that is sold, sent, delivered, transmitted or made available in any other manner to a member of the public,

  is deemed to be made to the public by and only by the person who causes the representation to be so expressed, made or contained, subject to subsection (2.1).

• Marginal note:Representations from outside Canada

  (2.1) Where a person referred to in subsection (2) is outside Canada, a representation described in paragraph (2)(a), (b), (c) or (e) is, for the purposes of subsection (1), deemed to be made to the public by the person who imports into Canada the article, thing or display referred to in that paragraph.

• Marginal note:Deemed representation to public

  (3) Subject to subsection (2), a person who, for the purpose of promoting, directly or indirectly, the supply or use of a product or any business interest, supplies to a wholesaler, retailer or other distributor of a product any material or thing that contains a representation of a nature referred to in subsection (1) is deemed to have made that representation to the public.

• Marginal note:General impression to be considered

  (4) In a prosecution for a contravention of this section, the general impression conveyed by a representation as well as its literal meaning shall be taken into account in determining whether or not the representation is false or misleading in a material respect.

• Marginal note:Offence and punishment

  (5) Any person who contravenes subsection (1) is guilty of an offence and liable

  • (a) on conviction on indictment, to a fine in the discretion of the court or to imprisonment for a term not exceeding 14 years, or to both; or

  • (b) on summary conviction, to a fine not exceeding $200,000 or to imprisonment for a term not exceeding one year, or to both.

• Marginal note:Reviewable conduct

  (6) Nothing in Part VII.1 shall be read as excluding the application of this section to a representation that constitutes reviewable conduct within the meaning of that Part.

• Marginal note:Duplication of proceedings

  (7) No proceedings may be commenced under this section against a person against whom an order is sought under Part VII.1 on the basis of the same or substantially the same facts as would be alleged in proceedings under this section.