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Canadians should be able to trust that the price they see is the one they pay.
When companies offer low prices to attract consumers, but then add mandatory fees so that the advertised prices are not attainable, it affects their abilities to make informed decisions.
This practice, known as drip pricing, raises concerns under the Competition Act, unless the additional fixed charges or fees are imposed by the government on purchasers, such as sales tax.
When the represented price is inaccurate, it makes it more difficult for consumers to comparison shop and result in unfair outcomes for honest competitors.
Best practices for businesses:
- Never promote an unattainable price. Promoting a price that is not attainable due to fixed charges or fees that consumers must pay is against the law, unless it is a charge or fee only in an amount imposed by an act of Parliament or the legislature on purchasers.
- Remember if that charge or fee is variable rather than being fixed, it could still raise concerns under the law.
- When making a price claim, ask yourself:
- Will consumers be able to trust that the price they see advertised is the one they will pay?
- Will they be surprised by extra fees?
- Build and maintain a credible and effective compliance program. For more information, visit the Compliance Hub.
Remain vigilant as a consumer
Signs of drip pricing:
- The price you see is not the price you pay.
- The true total cost of a product or service is not displayed upfront. You shouldn’t have to scroll down or read the fine print to find the total price of an item.
- There are additional charges you weren’t expecting. The only mandatory fees you should pay are the fixed ones imposed by the government on purchasers, such as sales tax.
If you come across one of these practices report it to us.
Penalties and remedies for non-compliance
The consequences associated with being found to have engaged in deceptive marketing practices depend on whether the conduct falls under the civil or criminal provisions of the Competition Act. Learn more about the penalties and remedies.