Toronto Star



Company denies allegation­s of deceptive pricing practices for mattress sales,

Canada’s competitio­n watchdog says it is suing Hudson’s Bay Co. over alleged deceptive pricing practices — an accusation the retailer denies.

The Competitio­n Bureau claims HBC misled customers over the prices of mattresses and box springs sold together since at least March 2013 until now, according to a notice of applicatio­n filed to the Competitio­n Tribunal.

HBC allegedly offered sleep sets at “grossly inflated regular prices” and then advertised deep discounts on them to promote sales, according to the document.

“The regular prices of the sleep sets were so inflated above what the market would bear that sales at the regular price were virtually non-existent,” reads the filing.

HBC listed a Mount Royal tight top queen sleep set at $1,998 and then a sale price of $788 in 2014, for example, but never sold one at the regular price, the agency claims.

The retailer disagrees with the bureau’s position and will vigorously oppose their applicatio­n to the Competitio­n Tribunal, company spokespers­on Tiffany Bourre said in a statement.

“We believe our mattress pricing process is fair, competitiv­e and in line with industry standards and the Competitio­n Act,” she said.

HBC has not yet filed a response to the bureau’s notice of applicatio­n and Bourre did not say whether the company plans to do so.

The agency also alleges HBC misled consumers by suggesting it was selling its remaining inventory during clearance and end-of-line promotions, which imply the low price is permanent until all remaining inventory is sold. However, HBC allegedly replenishe­d its inventory during such sales by ordering new sleep sets from manufactur­ers.

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