What Is It?
The federal Competition Act prohibits businesses from making false or misleading representations to consumers — including deceptive advertising, bait-and-switch tactics, pyramid selling, misleading price representations, and deceptive “dark patterns” in online interfaces. The Competition Bureau investigates violations and can order restitution for affected consumers.
Critically, since amendments in 2022 and 2024, the Competition Act has been significantly strengthened — and starting in 2025, consumers have a private right of action to sue businesses directly for losses caused by deceptive practices, without going through the Competition Bureau.
Key Prohibited Practices
False or misleading representations (Section 74.01): Any materially false or misleading general impression about a product, service, or price is prohibited — this includes implied representations, not just explicit false statements.
Bait-and-switch selling (Section 74.04): Advertising a product at a price you don’t intend to honour (advertising at a low price to attract customers, then pressuring them to buy a higher-priced item) is prohibited.
Deceptive telemarketing (Section 74.16): Making materially false representations during telemarketing calls, including misrepresenting affiliation with charities or government agencies.
Deceptive dark patterns (2024 amendment): Online interface design that tricks users into purchases, subscriptions, or consents they didn’t intend — such as confusing unsubscribe flows, hidden fees revealed only at checkout, and drip pricing.
Misleading pricing (Section 74.01(1)(b)): Advertising a “regular price” that was never actually charged for a substantial period (“regular price” sales scams).
How to File a Competition Bureau Complaint
- Go to competitionbureau.gc.ca and select “Submit a Complaint”
- Describe the deceptive practice with as much detail as possible: dates, advertisements, receipts, screenshots
- The Bureau prioritizes complaints that affect many consumers or involve egregious conduct
- The Bureau can seek court orders requiring the business to pay restitution to affected consumers
The New Private Right of Action (2025+)
Under Bill C-56 (Grocery industry transparency bill, 2024) and broader Competition Act amendments, private individuals and businesses may now bring a civil claim before the Competition Tribunal or Federal Court for losses caused by deceptive practices. This is a significant change — previously only the Competition Bureau could take action.
The private right of action allows:
- Individual consumers to sue for actual damages
- Class actions by groups of affected consumers
- Recovery of legal costs in successful cases
What Most People Don’t Know
- Provincial consumer protection laws provide additional and sometimes stronger remedies. Ontario’s Consumer Protection Act, Quebec’s Consumer Protection Act (which has had a private right of action for decades), and BC’s Business Practices and Consumer Protection Act all allow consumers to seek refunds, rescission, and damages for deceptive practices — often through small claims court.
- “Regular price” fraud is rampant in retail. The Competition Bureau has investigated major retailers for advertising fake “regular prices” and phoney “sale” discounts. If a product was never sold at the “regular price” for any substantial period, the sale price is misleading.
- Airline ancillary fee drip pricing is under scrutiny. The Competition Bureau has investigated airlines for advertising a low base fare and revealing fees only during checkout — a practice that may now be prohibited under the dark patterns provisions.
Frequently Asked Questions
I bought something based on a misleading ad. Can I get a refund through the Competition Bureau?
The Bureau can order restitution in enforcement cases, but individual refund requests are better handled through your provincial consumer protection office, your credit card’s dispute process, or — now — directly through the private right of action in court. The Bureau focuses on systemic violations, not individual case resolution.
The company’s website had hidden fees that only showed up at checkout. Is that illegal?
Under the 2024 Competition Act amendments addressing deceptive drip pricing and dark patterns, yes — mandatory fees must be included in the advertised price or clearly disclosed upfront. File a complaint with the Competition Bureau and your provincial consumer affairs office.
What is the difference between a Competition Bureau complaint and a provincial consumer protection complaint?
The Competition Bureau handles federal law and focuses on systemic, market-wide conduct. Provincial consumer protection offices handle individual consumer complaints under provincial law and often resolve them faster for individual refund purposes.
Can I file a class action under the Competition Act?
Yes, since 2022 amendments. Class actions under the Competition Act’s private access provisions are now available. Several major class actions have been filed against tech platforms, airlines, and retailers under these provisions.