Practical Law Canada Competition has published a New Legal Update, which discusses the Competition Bureau’s new Deceptive Marketing Practices Digest, including the following key current Bureau advertising enforcement priorities: false or misleading data privacy claims, weight loss claims and online pricing and drip pricing. All of these enforcement priorities are consistent with the Bureau’s current focus on the digital economy.
Below is an excerpt with a link to the full Update.
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On March 4, 2020, the Competition Bureau (Bureau) released a new volume of The Deceptive Marketing Practices Digest (Bulletin) (see News Release, Competition Bureau looks at three types of online claims that consumers encounter every day, Competition Bureau, March 4, 2020).
The Bulletin discusses the Bureau’s enforcement approach in relation to the following:
Collecting consumer data in exchange for “free” online products and services. The Bureau has recently adopted a new enforcement priority in relation to misleading data privacy claims. In this respect, the most noteworthy aspect of its new Bulletin is its discussion of privacy-related activities that could violate the Competition Act, R.S.C. 1985, c. C-34 and related compliance guidance.
According to the Bureau, issues in this area could arise in relation to consumer data collected by social media platforms, apps, browsers or online retailers. The Bureau’s top concerns in relation to the collection of personal information relate to whether consumer data will be collected (and what will be collected and how often), why data is collected, whether the data will be sold or shared with third parties and how it will be maintained and deleted.
The Bureau also provides examples of how claims related to the collection and use of personal information can violate the Competition Act, R.S.C. 1985, c. C-34 (for example, claims that consumer data will not be collected, failure to disclose the purpose of collection or that data will not be sold or shared with 3rd parties).
This new Bureau enforcement priority, which is related to its overall focus on the digital economy, is a reminder that the general false or misleading representation provisions of the Competition Act are very broad and can apply to many different types of claims that are made to promote a product or business interest. For more information, see Practice Notes, Misleading Advertising Under the Competition Act, Digital Marketing and the Competition Act and Disclaimers Under the Competition Act. See also, Legal Update, Digital Economy Remains Top Competition Bureau Priority For Next Four Years: New Strategic Vision Report.
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For the full Update, see: New Competition Bureau Deceptive Marketing Practices Digest: Priorities Include Misleading Data Privacy Claims.
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