Canada

What can I do if a company advertises a low price but then adds mandatory extra fees at checkout (drip pricing)?

s. 74.011
Relevant section
Criminal offenc
Penalty type
Up to $10M
Max fine
5 years
Max jail time
The Short Answer

You can file a complaint with the Competition Bureau, which enforces Canada’s drip pricing ban under the Competition Act. Companies that advertise a low price but add mandatory fees at checkout may be breaking the law.

What the Law Says

Canada’s Competition Act explicitly bans drip pricing — advertising a low price while hiding mandatory extra fees until late in the checkout process.

Drip pricing is illegal under section 74.011 of the Competition Act. This rule applies to any business selling goods or services to Canadian consumers, whether online or in person.

The law targets misleading price representations: if a company advertises a price but requires consumers to pay additional charges (like fees, taxes, or mandatory add-ons) to actually obtain the product or service, the advertised price is considered 'not attainable' — and therefore unlawful.

Violations can lead to serious consequences: individuals face up to 5 years in prison and fines up to $10 million; corporations may be fined up to $10 million per violation.

Statutory Text

Prohibits making a representation of a price that is not attainable due to mandatory additional charges.

Competition Act, s. 74.011 — Drip pricing

What to Do

1

Save screenshots of the advertised price and final checkout total (including all mandatory fees).

2

File a complaint online at competitionbureau.gc.ca/complaint or call 1-800-348-5358.

3

Include details like the business name, date, platform used (e.g., website/app), and evidence of the price discrepancy.

4

The Competition Bureau will review your complaint and may investigate, issue warnings, or pursue enforcement — including fines or court orders.

Sources

Same Question, Other Jurisdictions

Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.