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Competition Bureau resolves misleading performance claims case

Authored byChen Li

On April 27, 2022, the Competition Bureau announced that it has reached a settlement agreement with NuvoCare Health Sciences Inc and its founder (collectively “NuvoCare”), who were found to have made marketing claims that gave a false or misleading impression about their weight loss products.

Under paragraph 74.01(1)(b) of the Competition Act, a person cannot make a claim about a product’s performance, efficacy or length of life unless the claim is based on an adequate and proper test. The Competition Bureau’s investigation concluded that NuvoCare’s weight loss claims were not supported by adequate and proper testing.

As part of the settlement, NuvoCare agreed to pay $100,000 in penalties, change/remove all weight loss claims made about their products, and establish a corporate compliance program to prevent future deceptive marketing issues.

Should you have any questions, please do not hesitate to contact a member of the Life Sciences Regulatory & Compliance group.

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