Misleading Advertising in Canada: A Competition Act Checklist for Your Marketing

Canada’s Competition Act prohibits any representation to the public that is false or misleading in a material respect, and it judges an ad by the general impression it leaves as well as by its literal words. That covers your website, Google Business Profile, social posts, paid ads, emails and what your staff tell customers. Before an ad runs, every claim in it should be true the way an ordinary reader would understand it, and you should already hold the proof.

The rule got fresh attention on October 28, 2026, when the Competition Tribunal ordered Rogers to pay a $15 million penalty over the marketing of its Infinite wireless plans. The Competition Bureau’s statement on the ruling says the plans were promoted as offering unlimited data despite a significant reduction in speed after a set amount of use, and that the Tribunal also ordered a corrective notice and payment of the Bureau’s legal costs.

This guide is general information. It is a marketing-risk observation, not a legal opinion; for a specific campaign, check the current rules with a lawyer.

What the Competition Act prohibits

Section 74.01 of the Act, current to October 19, 2026, makes it reviewable conduct to make “a representation to the public that is false or misleading in a material respect” to promote a product or a business interest. Three points matter most for everyday marketing:

• General impression counts. Section 74.03 of the Act says “the general impression conveyed by a representation as well as its literal meaning shall be taken into account.” The Bureau explains how courts apply this in its general impression test page.
• Nobody has to be fooled. The Bureau’s advertising dos and don’ts state that no one needs to be actually deceived for a practice to be found misleading.
• Fine print cannot rescue a headline. A disclaimer that contradicts the main message of an ad may not fix a misleading general impression.

What the Rogers ruling means for a smaller advertiser

The case turned on one word in a headline. “Unlimited” told buyers one thing while the plan terms said another. The same risk sits in words small businesses use every day: free, all-inclusive, same-day, no extra fees, lowest price, certified, Canadian-made. If a word in your ad needs a footnote to stay accurate, rewrite the headline so the footnote is no longer needed.

The Bureau’s statement adds that misleading advertising can distort consumer choice, erode confidence in the marketplace and disadvantage businesses that compete fairly. If a competitor’s ads cross the line, the Bureau accepts complaints from businesses and consumers.

Prices: drip pricing and “regular price” claims

The Act names drip pricing directly: “the making of a representation of a price that is not attainable due to fixed obligatory charges or fees.” In plain terms, the price you show must include every mandatory fee the buyer has to pay. The Bureau’s drip pricing page and its dos and don’ts note that government-imposed charges such as sales tax are the exception.

Savings claims carry their own rule. The Bureau says to call something a “regular price” only when the product was offered in good faith at that price for a substantial period, or substantial volumes sold at that price within a reasonable time. Inflating a price so a sale looks bigger is the practice the rule targets.

Performance claims need proof before the claim

A claim about how well something works, how fast results arrive or how much it saves must be based on an “adequate and proper test,” and the Act puts the proof on the person making the claim. The Bureau’s performance claims page makes the same point. Run the test first, keep the results, and make sure the ad says no more than the test showed.

Environmental claims are held to a similar standard. The Act requires an adequate and proper test for claims about a product’s environmental benefits and adequate and proper substantiation for claims about a business’s environmental benefits. The Bureau’s environmental claims guidance covers greenwashing in more detail.

Testimonials, reviews and influencers

• Testimonials: the Bureau’s tests and testimonials page explains the rules for testimonials about how well a product works: the person must have published the testimonial first, and you need their written approval and permission before you use it. Quote it as they gave it, and never trim it or take it out of context so it says more than the customer did.
• Staff reviews: in a January 2024 notice, the Bureau warned that businesses could be liable for reviews posted by employees who do not disclose the relationship. Its advice: if the connection cannot be made clearly visible in the review, the employee should not post it.
• Influencers and partners: the Bureau’s influencer marketing guidance says every material connection with the business must be disclosed, on each platform where the content is shared, and that tagging a brand or posting a discount code is unlikely to be enough on its own.

Review gating, paid review swaps and reviews written by owners also run into Google’s own policies. Our reputation management page covers the review side in more depth.

What a misleading ad can cost

For a corporation, section 74.1 of the Act sets the maximum administrative monetary penalty at the greater of $10 million ($15 million for each later order) and three times the value of the benefit from the deceptive conduct, or 3% of annual worldwide gross revenues when that benefit cannot reasonably be determined. The Tribunal can also order corrective notices, as it did in the Rogers case. Applications can come from the Commissioner of Competition or from a private party the Tribunal grants leave under section 103.1, so a competitor can take a case forward as well (claims about a business’s environmental benefits are the exception).

A checklist before any ad goes live

• Read the headline alone. Would a customer who sees only that line come away with an accurate idea of the offer?
• Check every price against the final checkout or invoice. Mandatory fees belong in the advertised price; only government charges such as sales tax may sit outside it.
• Find the proof for each performance, savings, speed or environmental claim and keep it on file with the date of the test.
• Confirm written permission for every testimonial, photo of a customer and quoted review.
• Make sure product photos show the product being sold.
• Ask staff, partners and creators who post about you to disclose the connection every time, on every platform.
• Remove “regular price” and “was” prices you cannot support with sales records.
• Re-check landing pages, Google Business Profile text and ad extensions after every offer change, since old claims linger there.

Accurate copy also tends to convert better, because the people who click already understand the offer. When we write website and campaign copy or build Google Ads campaigns, every claim is checked against what the business can prove before anything goes live.