New Federal Act tackles regional ‘price gaps’

New legislation to help ensure Canadians are not charged higher prices than Americans simply because of where they live.

Golden residents often see higher consumer prices, most notably for gasoline, purely because of the geographic location. Now, after new legislation introduced by the Federal Conservatives, tools will be in place to investigate the “price gap,”

The legislation was brought forward primarily to tackle price discrimination between Canadian and U.S. prices, but does not exclude price gaps between Canadian regions.

“The unexplained and often significant price gap between Canadian and U.S. prices for the same products is a frustrating and all too familiar reality for any Canadian who has ever shopped online or travelled to the United States,” said Conservative MP, and Golden’s federal representative David Wilks.

Industry Minister James Moore announced new legislation to help ensure Canadians are not charged higher prices than Americans simply because of where they live.

The Price Transparency Act will help tackle the practice of geographic price discrimination, one of the key contributors to the Canada-U.S. Price Gap.  The legislation provides the Competition Commissioner with the tools necessary to investigate alleged cases of price discrimination and publicly report to Canadians situations where consumers are unfairly targeted with higher prices. The Commissioner will be authorized to seek court orders to compel the production of evidence to expose discriminatory pricing practices that are not justified by higher costs in Canada, and to publicly report to consumers on the findings.

 

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