Competition Bureau is reportedly investigating the alleged price markups at Sear Canada
Sears Canada just can’t seem to stay out of the news. The latest has been the allegations against the Canadian retailer that they have been raising prices amid their liquidation sales. According to a new report by Sears Canada’s court-appointed monitor, the Competition Bureau is now investigating the allegations.
Since the sales have started CBC News has received numerous complaints from customers saying that prices have been increased in light of the liquidation sales. This is seemingly done to offset the loss associated with the sale. But now, after receiving complaints themselves, the Competition Bureau is supposedly looking into the claims.
According to the report, letters were sent out to the liquidators who are currently conducting the closing sales for various Sears Canada stores. The letters were sent out on November 8th, asking about the allegations and noted that a response was required by November 17th.
"Allegations, amongst others, are that the price of certain merchandise was marked up prior to promoting 20 per cent to 50 per cent savings," said the report.
Sears Canada has admittedly denied these allegations over the past month.
"This is not how we conduct business," spokesperson Vince Power said in an email to CBC News when the allegations first came to light.
When pressed by CBC News, the Competition Bureau refused to comment or even confirm anything about the investigation, claiming that they have a duty to maintain confidentiality. However, they did respond as to why the increase in price points could be in violation of the Competition Act.
"When comparisons are made between a regular price and a sale price, they must be true," said spokesperson Mélanie Beauchesne in an email to CBC News.
Sears Canada has been hard pressed to stay out of the hot seat while going through their liquidation process. From continuing to give their executives large bonuses while those let go were done so without severance, to the supposed “Hardship Fund” not getting all the money it was promised, the Canadian retailer has been in it’s fair share of hot water.