The rules are strict, the penalties are real, and good records are everything. Here's the 80/20—and how hoppr iq helps you stay compliant while still marketing compelling offers.
What is an OSP claim?
Any statement about a product's regular/usual price (e.g., "50% off," "$99 off list," "Compare at $75—our price $50"). These are legal in Canada only if truthful under the Competition Act.
The two ways to substantiate an OSP
You must be able to pass at least one test.
Time Test (typically 6 months):
Offered at or above the stated "ordinary price" for >50% of the relevant period (before or after the claim), in good faith.
Volume Test (typically 12 months):
≥50% of sales occurred at or above the ordinary price during the relevant period (before or after the claim).
Market-comparison claims (e.g., "compare at") generally expect Time Test evidence grounded in real competitor prices.
Best-practice playbook (quick)
- • Document everything: base price, promo price, dates, units sold at each price.
- • Keep periods handy: 6-month (time) and 12-month (volume) windows.
- • Label promos precisely: TPRs, multi-buys, loyalty/coupons; start/end dates.
- • Train teams: what OSP means, how to avoid inflated "regular" prices.
- • Be careful with "compare at": keep objective competitor evidence on file.
- • Seasonal items: use a seasonally appropriate period (don't assume 6/12 months fits).
Common pitfalls
- • Inflating a "regular" price you rarely or never actually charged.
- • Using market "compare at" without current, objective competitor data.
- • Seasonal items where the chosen period doesn't match the true selling cycle.
- • Poor record-keeping—can't prove time/volume or "good faith" pricing.
Consequences if you miss
Administrative penalties (up to $10M for corporations; $750k for individuals), cease-and-desist orders, corrective notices, restitution—and potential criminal exposure for knowing violations.
How hoppr iq helps you market boldly—without crossing the line
- • Price History, Ready on Demand
Automatic capture of base vs. promo prices with dates and volumes, so Time/Volume Test evidence is a click away. - • OSP Readiness Checks
Pre-publish checks that simulate the Time and Volume thresholds for a SKU or campaign and flag risk (e.g., not enough time at base, too few sales at base). - • Competitor "Compare At" Evidence
Scheduled monitoring of rival prices with timestamped snapshots and unit-true normalization (where available) to support market comparisons. - • Promo Label Discipline
Structured promo types (TPR, multi-buy, loyalty) with start/end timing to avoid ambiguous "sale" language and prove duration. - • Alerting & Guardrails
Custom rules that notify teams if a proposed claim fails a test window, if a "regular" price looks artificially high, or if competitor benchmarks have shifted. - • Audit-Ready Exports & Traceability
Clean, dated exports of prices, volumes, and periods for internal audit, legal review, or regulator inquiries—your organization's data stays your data (never shared with other customers).