From Staff & Wire Reports

AKRON, OHIO — Canada’s Competition Bureau slapped Sears Canada Inc. with a $487,000 fine last week as a result of a February finding that the retailer had lied about how much consumers would save when buying tires at its locations.

At the same time, it has been reported that Sears Holdings Corp., the new company that emerged from Kmart’s recently approved purchase of Sears, will cut the wages and benefits of its combined 400,000-person workforce.

The Competition Bureau fine includes a $100,000 penalty, and $387,000 to cover the government’s legal costs. According to the Competition Bureau, Sears Auto Centers in Canada advertised that consumers could save on tire purchases at its stores, when, in reality, the Bureau found, fewer than 2 percent of the tires sold had been retailed at the claimed full price before such sales.

“This kind of deceptive marketing practice hurts consumers, business competitors and competition,” Raymond Pierce, deputy commissioner of competition, said in a statement announced the fine. “Consumers deserve the truth about prices advertised by retailers.”

Last March, Sears sold or closed down its 49 auto centers in Canada.

Meanwhile, Sears Holding would not confirm or deny reports out of Detroit that the company planned to reduce wages and benefits for its employees. However, a spokesman did say that Sears Holding employees had been informed by e-mail that the company would inform them of planned changes to their benefits that would kick in next year.

In addition, Sears Holding plans to lay off some 6,000 white collar workers from the combined company’s headquarters.

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