Business ProfileforFarmhouse Kitchen and Bath

On July 30 2019 BBB contacted the company regarding the pricing schemes on their website, due to an application for BBB Accreditation. All of the products were listed at a significant price reduction, with no sale end date, or increase to regular price. Upon review the company's sale price was often the same or similar to competitor's regular pricing.

The Competition Act, regulated by the Competition Bureau states the following regarding false or misleading ordinary selling price representations:

Subsections 74.01(2) and 74.01(3) of the Competition Act are civil provisions. They prohibit the making, or the permitting of the making, of any materially false or misleading representation, to the public, as to the ordinary selling price of a product, in any form whatever. The ordinary selling price is determined by using one of two tests: either a substantial volume of the product was sold at that price or a higher price, within a reasonable period of time (volume test); or the product was offered for sale, in good faith, for a substantial period of time at that price or a higher price (time test).

In the event that the represented ordinary price refers to the ordinary price of suppliers in the market, unless these suppliers have sold a substantial volume of the product at the represented ordinary price, or alternatively, these suppliers have offered the product for sale in good faith at the represented ordinary price, this price can not be referenced as the ordinary price, and an issue is raised under subsection 74.01(2).

In the event that the represented ordinary price refers to the supplier's ordinary price, unless the supplier has sold a substantial volume of the products at the represented ordinary price, or alternatively, the supplier has offered the product for sale in good faith at the represented ordinary price, this price can not be referenced as the ordinary price, and an issue is raised under subsection 74.01(3).

Under these provisions, it is not necessary to demonstrate that any person was deceived or misled; that any member of the public to whom the representation was made was within Canada; or that the representation was made in a place to which the public had access. Subsection 74.03(5) directs that the general impression conveyed by a representation, as well as its literal meaning, be taken into account when determining whether or not the representation is false or misleading in a material respect.

Additionally, Section 3 of the BBB Code of Advertising (Comparison with Own Former Selling Price) states, The former price must be the actual price at which the advertiser has openly and actively offered the product or service for sale, for a reasonably substantial period of time, in the recent, regular course of business, honestly and in good faith.

The company responded to the ad review stating it was the price provided by their supplier. Upon further discussion they agreed to remove the regular price claims, however they did not follow through. The company did not respond to further attempts at contact.