“Was $199, now $99!” sounds like half off. But was it ever actually $199? A lot of the time, it wasn’t, and that’s not just annoying: in Canada, it can be illegal.
Here’s how fake sales work, what the law says a “regular price” has to be, and the quick checks that tell you whether a deal is real.
What a fake sale looks like
The trick is almost always the comparison price. A store sets a high “regular,” “was” or “compare at” price that the item rarely or never sold for, then “discounts” it to what it was always going to cost. The percentage off looks huge, but you’re not saving anything.
Other common versions:
- “Up to 70% off” when only a handful of items reach that discount.
- Permanent “sales”, where the item is on promotion so often that the sale price is the real price.
- Fake countdown timers and “only 2 left” warnings designed to rush you.
- Prices that grow at checkout, when mandatory fees are added after you’ve been shown a lower price.
What Canadian law says a “regular price” must be
Canada’s Competition Act covers this directly. When a store compares its sale price to its own “regular” price, that regular price has to pass one of two tests set out by the Competition Bureau:
- Volume test: more than 50% of sales of the product were at that price or higher within a reasonable period, usually within a year, before or after the promotion.
- Time test: the product was offered, in good faith, at that price or higher for a substantial period of time, usually within a year, immediately before or after the promotion.
If the regular price fails both tests, the discount claim can be misleading. In the Bureau’s words, a business can’t advertise “$100, now $50” if the item never actually sold at $100.
The Bureau has taken action on this before. In 2023, furniture retailer The Dufresne Group agreed to pay a $3.25 million penalty over its pricing claims.
Hidden fees: drip pricing is illegal too
Since 2022, the Competition Act has treated drip pricing as deceptive. That means advertising a price you can’t actually pay because mandatory fees are added later. If a fee is unavoidable, it must be included in the price you’re shown upfront. Only government-imposed charges, such as sales tax, can be added on top.
So a concert ticket, hotel room or rental advertised at one price that jumps at checkout because of a mandatory “service fee” is exactly what the rule targets.
How to tell if a deal is real
- Check the price history. For Amazon.ca, CamelCamelCamel and Keepa show every price change. For other stores, search the exact model number and see what it has sold for elsewhere.
- Compare across stores. If three other retailers sell it at the “sale” price every day, it isn’t a sale.
- Ignore “compare at” prices. A “compare at” or “valued at” price is often a manufacturer’s suggested price that nobody charges.
- Read the fine print on “up to.” Find out what percentage most items are actually discounted.
- Look at the total. Add shipping and every mandatory fee before you compare.
- Don’t let a timer rush you. If the countdown resets when you reload the page, it was never real.
What to do if you spot one
You can report misleading pricing to the Competition Bureau through its online complaint form. The Bureau looks for patterns across many complaints, so individual reports matter.
If you were charged more than a displayed price in a store, that’s a different issue with its own rules. When two prices are shown, the store must charge the lower one, and the Scanner Price Accuracy Code may get you the item free. See our price errors guide.
When to be most careful
Big sale events like Black Friday and Boxing Day are when inflated “was” prices are most common, because every retailer is competing on the size of the discount. That’s exactly when it pays to check price history before you buy. Our best time to buy guide shows when prices genuinely drop.
FAQ
Is it illegal to inflate a regular price in Canada?
It can be. Under the Competition Act, a regular price used in a sale comparison has to pass the volume test or the time test. If it doesn’t, the claim can be misleading, and businesses can face penalties.
What is drip pricing?
Advertising a price that can’t actually be paid because mandatory fees are added later. It has been treated as deceptive under the Competition Act since 2022. Only government-imposed charges like sales tax can be added on top.
Are Black Friday deals real?
Many are, but Black Friday is also when inflated “was” prices are most common. Check the price history before you buy.
How do I report a fake sale?
Use the Competition Bureau’s online complaint form. Include screenshots of the advertised price and the comparison price if you can.
This guide is general information, not legal advice. Last checked October 2026.
