Loss leader advertising constitutes misleading advertising under the Competition Act.

Question

Quizplus · Accepted Answer

Loss leader advertising is a legal marketing strategy where a product is sold at a temporarily reduced price in order to attract customers to a store or business with the hope they will purchase additional products at regular prices. However, if the business intends to deceive customers by misrepresenting the availability or quality of the product or if they do not have enough stock to satisfy the demand of customers attracted by the loss leader, it would be considered misleading advertising and be in violation of the Competition Act.

Loss Leader Advertising Constitutes Misleading Advertising Under the Competition Act