The Competition Bureau of Canada has issued a warning to businesses regarding the legality of advertising discounts during major sales events like Black Friday. The Bureau has observed a rise in complaints about inflated regular prices, which can mislead consumers and violate the Competition Act.

Businesses are prohibited from advertising fictitious discounts by promoting a non-existent 'regular price'. For instance, claiming an item is 'now $50' from a 'regular price' of '$100' is illegal if the item was never sold at that higher price.

To ensure compliance, businesses must adhere to two legal tests to validate their regular prices: the Volume test, which requires that more than 50% of sales were at that price within a reasonable timeframe, and the Time test, which necessitates that the product was offered at that price in good faith for a substantial period before or after the promotion.

The Bureau advises businesses to maintain accurate records of promotions, avoid ambiguous savings claims, and educate employees about deceptive marketing practices. Consumers are encouraged to report any suspected fake sales to the Bureau.