Regulator investigating possible Sears Canada liquidation sale prices markups

Liquidations sales began in October

The Competition Bureau is investigating allegations that prices on some merchandise were marked up ahead of the liquidation sales at Sears Canada that began last month, the court-appointed monitor overseeing the retailer says.

The monitor’s seventh report to Ontario Superior Court says the federal competition watchdog sent letters on Nov. 8 to the liquidators inquiring about the allegations that certain merchandise was marked up.

READ: Sears Canada to liquidate remaining stores

A Competition Bureau spokeswoman said Thursday that the agency can’t comment or confirm any ongoing investigation.

But under federal law, she wrote in an email, consumers should not be misled by references to inflated regular prices and ”doesn’t make any distinctions between retailers and liquidators or the nature of the promotional event.”

For example, Amazon.com.ca Inc. agreed in January to pay a $1 million penalty and $100,000 towards costs after the bureau determined the online retailer hadn’t verified the accuracy of “list price” information provided by its suppliers.

The bureau also works to achieve “voluntary” compliance with the act “through various types of communication to businesses or individuals in specific matters before, during and/or following an investigation.”

A spokesman for Sears Canada told The Canadian Press that the company didn’t have a comment about a CBC News report on Thursday that said it had spoken with a Sears Canada employee who said he was ordered to mark up prices shortly after liquidation sales began on Oct. 19.

VIDEO: Sears liquidation sales continue across B.C.

A call and emails to one of the Sears Canada liquidators were not answered Thursday.

Sears Canada has been under court protection since June and began the process of liquidating its remaining stores in October after failing to find a buyer.

After the sales began, several customers posted pictures to social media suggesting prices had been raised.

The joint-venture group running the liquidation includes Hilco Global, Gordon Brothers, Tiger Capital Group and Great American Group.


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Supreme Court of Canada will hear Sinixt appeal May 12

B.C. has appealed Indigenous hunting case through several levels of court starting in Nelson in 2016

Shuttle service at Trail hospital will remain for now

“ … shuttle service will remain in place while work on the new drop-off area … continues.”

Nelson’s Jesse Pineiro named B.C. boxing coach of the year

Pineiro and his fighters from Nelson Boxing Club were honoured at provincials

Fire destroys Fauquier restaurant

Early-morning blaze destroys Mushroom Addition

IHOP to host seventh annual National Pancake Day

IHOP will be offering free short-stack pancakes in support of BC Children’s Hospital on Tuesday

Do you talk to your spouse about money? 42% of Canadians don’t, poll suggests

Politics, sex, religion top list of taboo subjects for Canadians

Okanagan animal sanctuary seeks to fit frostbitten baby goat with prosthetic leg

Fundraiser started to help Zuri, newest resident of Twin Hearts Animal Sanctuary

UPDATE: Two killed in fiery collision on Highway 1 near Revelstoke

The Trans Canada Highway was closed for four hours

Father, two children killed after car goes over embankment on B.C. highway

The single vehicle crash occured near Kamloops on Highway 5A

Trout ‘doing quite well’ at Kootenay hatchery after otters, who ate 150 fish, relocated

River otters had been pillaging a moat outside the facility for months, gobbling up about 150 trout

Most Read