Competition Bureau - Response on Etsy "Free Shipping"

[EpicStitching]

Hi All, 

I have some important information from the Canadian Competition Bureau to share regarding Etsy's "Free" shipping policy. 

I've been persuing the free shipping fiasco from the legal aspect in Canada. After Etsy's (frankly) pathetic response to me that it's up to each individual 'business' (ie: us) to comply with our 'local laws' (they say it like we are all in tiny countries or something...) I have been very concerned about people loosing their businesses or having major problems with the Canadian law. For example; if you work without business insurance on the basis of a sole prioritership (my scenario) because you bring in less than $30k a year then you could stand to loose everything if you were to be sued by someone or the government were to fine you. Your personal assets are not protected unless your business is incorporated or a clear separate entity. 

Anyways, below is what the competition bureau has said about Etsy's 'free shipping' policy and adding the cost to the overall price of the item. It is clear to me and a few others who've read this response this morning that it is illegal to add the cost of shipping into our item prices and then claim we have 'free shipping'. I've talked with others around the world and for sure the EU and Mexico have this same law. (in fact it looks like most countries do... except the USA...) Based on the response below I will be investigating USA law next... 
I will be filing a complaint against Etsy itself with the Competition Bureau; but I'm concerned they will tell me that Etsy is not the 'business' doing the illegal selling as they are not selling anything and that it's our indivudal businesses on the hook. *sigh*

Interestingly since my persistent pushing of the issue on Canadian law my shop has dropped completely from all searches it used to be in. I've received no new customer orders since July 16. 70% of my core business is out of the USA. I have had some long-time customers order; but I know they don't look for my items in search; they have my shop bookmarked instead. To say I'm frustrated is an understatement. All that said I share the below email information because I am very concerned about sellers unknowingly breaking Canadian law (because Etsy is telling them to) and then being reported by someone. :( 

Please forgive the bad formatting that is just too much effort to try and get rid of. Thanks!

-----------------Email from Competition Bureau below---------------------

Competition Bureau / Bureau de la concurrence <IC.CBCompBureau-BurconcurrenceBC.IC@canada.ca>	Mon, Jul 29, 2019 at 6:11 AM
Reply-To: IC.CBCompBureau-BurconcurrenceBC.IC@canada.ca To: Epicstitching@gmail.com Cc: IC.CBCompBureau-BurconcurrenceBC.IC@canada.ca
Our File: R700055   Melissa Ladner Calgary, Alberta Dear Ms. Ladner: Thank you for your enquiry regarding Etsy.ca. We apologize for the delay in our reply. The Competition Bureau ("Bureau"), as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace. As part of its mandate, the Bureau is responsible for the administration and enforcement of the Competition Act ("Act"), a federal law that governs most business conduct in Canada. The Act contains criminal and civil provisions to address false or misleading representations and deceptive marketing practices in promoting the supply or use of a product or any business interest. To learn more about false and misleading representations, please visit our website: http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/00513.html  As indicated in section 3.6 in the link provided above, it is well established that a representation for a "free" or other refund or coupon offer should not contain an essential feature or condition that is hidden from a purchaser who might not be willing or able to comply with it. Example: "When you leave your film for developing and processing, we will give you a new roll at no charge," where the processing price is inflated to cover the "free" film and refunds are given to customers not wishing to receive the film. Nor is it "free" in a "two-for-one" situation where the price of the first article is inflated to cover the cost of the second. If you believe that someone has, in some way, contravened any of the legislation enforced and administered by the Bureau and you wish to file a complaint, you may follow the link provided to submit online: www.competitionbureau.gc.ca/complaint. Please provide detailed information such as a detailed description of the situation, copies of advertisements (for example, a screenshot, if available) and the coordinates of the business in question, so that we may process your complaint accordingly. Please include file number R700055 where indicated.  You may also wish to contact the following organization which may be in a position to address your concerns: Federal Trade Commission 600 Pennsylvania Avenue North West Washington, DC 20580 United States of America Telephone: 202-326-2222 Web site: www.ftc.gov  We invite you to visit our Web site, www.competitionbureau.gc.ca, to learn more about the work of the Bureau and to access public information on case developments and general information about our programs and activities. Thank you again for taking the time to bring this matter to our attention. Centre des renseignements Bureau de la concurrence / Gouvernement du Canada 1-800-348-5358 / Télécopieur : 819-997-0324 / ATS : 1-866-694-8389 Information Centre Competition Bureau / Government of Canada 1-800-348-5358 / Facsimile: 819-997-0324 / TTY: 1-866-694-8389

[AWonderlandJewellery]

Thanks for the heads up! I've been trying to come up with a way to add free shipping to US customers without stiffing Canadian ones, but after reading this I think I'll give it a hard pass. Best to play it safe.

[SarawenPerfume]

Thanks for doing this. I've always thought this Free shipping thing was always shady on Etsy's part. I don't know what they're thinking.