Canada cracks down on US price competition

Consumers buying clothing in North America have seen a disparity between the prices in Canada and US, where they are often much more expensive.

While they are different markets, the Canadian government is set to unveil legislation to target the retail price gap between its country and the US, giving the domestic competition watchdog new powers, the Globe & Mail reported Tuesday, citing unnamed sources.

The new law would let the Competition Bureau investigate suspected price discrimination, forcing executives to testify and companies to disclose confidential agreements with their suppliers, the G&M said.

Canada promised to give the Competition Bureau new powers to crack down on companies that unjustifiably charge more for goods in Canada in its 2014 budget.

Consumer outcry over the price gap emerged years ago when the Canadian dollar rose to parity with the greenback, leading shoppers to expect prices to become roughly equal on both sides of the border. Some retailers have argued that their operating costs are higher in Canada, justifying higher prices.