Court docs show what sparked Competition Bureau probe into Leon’s, The Brick

TORONTO — Court documents are offering a window into the Competition Bureau’s investigation into Leon’s Furniture Ltd. and its subsidiary The Brick Warehouse LP.

An application the watchdog filed to obtain a court order forcing the companies to hand over documents shows the bureau is after records related to the company’s pricing and marketing.

It wants to learn how the companies set and change prices, and plan and structure marketing and promotions because the bureau says it found instances where the brands didn’t offer products at regular prices for any substantial period of time.

The bureau found an LG electric range with an air fryer was on sale on The Brick’s website, but found it was never offered at the regular price the chain advertised in the six months prior.

The bureau is also looking at instances where it feels the companies have made false or misleading statements about end dates for some of their promotions. In the case of an LG stainless steel fridge, the bureau found 38 instances where Leon’s allegedly extended, renewed or immediately followed the time-limited promotion with another sale.

Asked about the bureau’s application, Leon’s and The Brick referred The Canadian Press to a prior statement, which said they are committed to complying with all regulatory requirements and are co-operating with the bureau’s investigation.

This report by The Canadian Press was first published Nov. 25, 2024.

Companies in this story: (TSX:LNF)

Tara Deschamps, The Canadian Press