# Is it legal for a telemarketer to hide the real price of a product during a call?

- Jurisdiction: Canada
- Practice area: Consumer Law
- Published: 2026-11-03
- Last updated: 2026-11-03
- Canonical: https://lawasked.com/ca/consumer-law/legal-telemarketer-hide-real-price-product-during-call

## Question

I am writing to ask for some guidance regarding a suspicious phone call I received here in Canada. On Tuesday, the 14th of last month, I received a call around 2:00 PM from someone claiming to represent a major electronics company. The person on the line was very enthusiastic and told me that I had won a special prize in a promotional programme. They said I could get a brand-new high-end tablet for absolutely no cost if I just agreed to sign up for a monthly subscription service. However, once I spent about fifteen minutes discussing the details, they suddenly mentioned that I had to pay a $250 delivery fee immediately via a bank transfer before they could ship it. They never mentioned this extra charge or the actual value of the subscription at the start of the conversation. I tried calling the number back to clarify the total cost and the terms, but the line was disconnected and I cannot reach them again. It feels like they were being dishonest about the total amount I would have to pay. Is it against the rules for these companies to withhold the true price or the actual terms of a deal until the very end of a sales pitch?

## Summary

Yes, it is illegal for a telemarketer to hide the true cost of a deal. Under Canadian law, companies must disclose the price and any delivery fees in a fair and timely manner during the call.

## Analysis

Based on the details of your call on Tuesday the 14th, the person claiming to represent an electronics company appears to have violated several rules regarding telemarketing. Telemarketing is defined as communicating orally to promote a business interest or a product [1]. 

Under the law, companies have specific duties regarding what they tell you. First, they must make "disclosure... in a fair, reasonable and timely manner, of the price of any product whose supply or use is being promoted and any material restrictions, terms or conditions applicable to its delivery" [1]. This means they cannot wait until the end of a fifteen-minute pitch to mention a $250 delivery fee; that fee is a material condition of the delivery that should have been disclosed much earlier. 

Furthermore, the law prohibits deceptive practices. Specifically, a person cannot "offer a product at no cost... in consideration of the supply or use of another product, unless fair, reasonable and timely disclosure is made of the fair market value of the first product and of any restrictions, terms or conditions applicable to its supply to the purchaser" [1]. By telling you the tablet was "absolutely no cost" while hiding the subscription costs and the immediate $250 bank transfer requirement, they may have made a representation that is false or misleading in a material respect [1]. 

Additionally, the law prohibits conducting a contest or game where the delivery of a prize is "conditional on the prior payment of any amount by the participant" without proper disclosure [1]. If the "special prize" you won required an immediate $250 payment to receive it, they were required to tell you that upfront. 

It is important to note that while these rules apply to telemarketing, if this interaction happened via an electronic message (like a text or email), different rules regarding "drip pricing"—where a price is not attainable because of hidden obligatory fees—might also apply. 

State, provincial, or local laws may add further rules regarding consumer protection and telemarketing; you should check your specific provincial consumer protection agency.

## Statutory citations

- Competition Act, R.S.C., 1985, c. C-34, s. 52.1 - Definition of telemarketing [in force] (https://laws-lois.justice.gc.ca/eng/acts/C-34/index.html#s-52.1)
  > disclosure is made, in a fair, reasonable and timely manner, of the price of any product whose supply or use is being promoted and any material restrictions, terms or conditions applicable to its delivery
- Competition Act, R.S.C., 1985, c. C-34, s. 52.1 - Definition of telemarketing [in force] (https://laws-lois.justice.gc.ca/eng/acts/C-34/index.html#s-52.1)
  > offer a product at no cost... in consideration of the supply or use of another product, unless fair, reasonable and timely disclosure is made of the fair market value of the first product

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