BUSINESS
05/08/2019 16:19 EDT | Updated 05/08/2019 16:24 EDT

Hudson's Bay Co. To Pay $4.5 Million To End Deceptive Pricing Investigation

The Competition Bureau says The Bay deceived customers about the depth of discounts on mattresses and foundations.

The flagship Hudson's Bay Company store in Toronto, Jan. 27, 2014.

OTTAWA — Canada's competition watchdog says the Hudson's Bay Co. will pay $4.5 million to resolve a deceptive pricing probe.

The Competition Bureau says HBC agreed to pay a $4 million penalty and $500,000 towards costs in the proceedings over whether the retailer misled customers over sleep set prices since at least March 2013.

Watch: Canadian retailers' very bad start to 2019. Story continues below.

The bureau took legal action against the retailer in 2017, alleging it used deceptive regular price claims and clearance promotions for sets of mattresses and foundations.

HBC will ensure marketing of its sleep sets complies with regulations, and establish and maintain a compliance program as part of the agreement.

Earlier on HuffPost Canada:

The company will also make sure it markets its major appliances appropriately.

Competition commissioner Matthew Boswell says in a statement that this sends a strong message that the bureau won't tolerate unsubstantiated savings claims.