November 21, 2020
Practical Law Canada Competition (of which I am Lawyer Editor) has published a new Legal Update, which discusses recent enforcement by the Competition Bureau against an ice hockey helmet manufacturer in relation to allegedly unsupported performance claims. The Legal Update includes an overview of the case, requirements imposed by the Competition Act on product or service performance claims and implications for advertisers.
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On November 17, 2020, the Competition Bureau (Bureau) announced that it had reached a consent agreement with TRUE Sports Inc. (TRUE Sports) relating to hockey helmet performance claims made by the hockey equipment manufacturer (see Competition Bureau, News Release, Competition Bureau completes investigation into performance claims related to TRUE hockey helmets (November 17, 2020)).
According to the Bureau, TRUE Sports had made performance claims relating to its helmets that gave the general impression that they could reduce the risk of concussions. The advertising claims in this case were made by the manufacturer through the use of diagrams, illustrations and text.
While TRUE Sports had conducted laboratory testing prior to making the claims, the Bureau’s position was that the testing was not adequate and proper to support them. In particular, the Bureau determined that the hockey equipment manufacturer relied in part on brain injury studies that largely focused on sports with fundamentally different patterns of injuries than those suffered playing hockey.
Under the True Sports, Inc. – Registered Consent Agreement negotiated with the Bureau, TRUE Sports agreed to donate $100,000 worth of sports equipment to charity, or a hockey league or association, stop making unfounded performance claims and implement an enhanced competition law compliance program. For more information about competition law compliance programs, see Practice Note, Competition Law Compliance Programs and Standard Document, Competition Law Compliance Program.
For the complete Legal Update, see: Hockey Helmet Performance Claims Case Illustrates Competition Act Compliance Requirements.
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