New legislation to tackle price gap between products in Canada and the US
Posted December 9, 2014 9:00 am.
This article is more than 5 years old.
OTTAWA (NEWS1130) – The Harper government wants to make sure shoppers aren’t getting gouged at the till for products that are much cheaper in the States.
It has introduced new legislation that will give the Competition Bureau the power to investigate the price gap between Canada and the US.
From books to children’s toys, Canadians often pay more than Americans for the exact same products.
“These price differences are real. They hurt the bottom line of hardworking families and they hurt Canadian retailers,” says Industry Minister James Moore.
He hopes to pass legislation to allow the commissioner of competition to investigate the price gaps and force companies to show documentation as to why Canadians need to pay more for things like TVs, shampoo, and Asprin.
“[We need] balanced and measured action to help ensure that Canadians pay the same price for the same product.”
In some cases, the price difference is legitimate because of factors like transportation or production costs, but Moore says in other cases, it’s an unfair way to take more cash out of the pockets of Canadian families and businesses.
But there will be no concrete penalties for companies that gouge us at the till The commissioner won’t have the ability to issue fines; they can only inform the public so consumers can decide if they want to buy products that are overpriced for no good reason.
