The federal Competition Bureau has begun issuing “Competition Bureau Updates” with summaries of recent enforcement matters. Highlights of the Bureau’s November Update include:
Quebec Gasoline Cartel
According to the Bureau, proceedings in relation to the Quebec gasoline cartel case are ongoing. The Bureau has announced that Canada’s Director of Public Prosecutions has filed a motion in the Quebec Court of Appeal to appeal the sentence of Daniel Drouin that was handed down in August (Mr. Drouin received an absolute discharge and made a $10,000 charitable donation).
Guilty Pleas in Deceptive Telemarketing Case
According to the Bureau, three individuals have pleaded guilty to deceptive telemarketing charges in relation to the promotion of business directories. The individuals in this case were prohibited from engaging in telemarketing for ten years as well as a six month conditional sentence and restrictive curfew conditions.
Competition Bureau Internet Sweep
The Bureau, together with members of the International Consumer Protection and Enforcement Network, conducted an Internet sweep to detect fraudulent and misleading Internet websites. The Bureau stated that whereas last year’s sweep resulted in over 37,000 Internet websites marked for further investigation (by the 21 participating countries), the Bureau focused its sweep this year on loan and grant schemes.
Prison Sentence in Mass Marketing Fraud Case
The Bureau has announced that two individuals involved in a cross-border mass marketing scheme have been sentenced to three years in prison for fraud related offences and six months for possession of stolen property. According to the Bureau, their company (Aid4Families) conducted Internet advertising guaranteeing high monthly returns for investors, collecting more than $500,000 from U.S. residents.
These most recent announcements by the Bureau illustrate that criminal cartels and deceptive marketing remain enforcement priorities for the Bureau. It will remain to be seen whether Bureau enforcement (and private action activity) increases following the coming into force of the new criminal cartel rules in March, 2010.
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