May 27, 2014
Earlier today, the Competition Bureau announced that a Canadian telemarketer has been sentenced, following a guilty plea, to an 18 month prison sentence in a misleading advertising and deceptive telemarketing case. According to the Bureau, the telemarketer was engaged in deceptive marketing of online business directory listings.
The announcement, while brief, is a reminder of several key points: (1) Canada’s Competition Bureau continues to seek individual liability in criminal Competition Act cases (including where marketing is more clearly deceptive, intentional or fraudulent); (2) misleading advertising can be pursued as either a civil matter or criminal offence in Canada; (3) corporate compliance programs, where companies or other organizations are engaged in advertising or marketing, should include misleading advertising compliance guidelines.
With respect to the latter point, while most companies marketing in Canada are not engaged in the type of conduct that would be likely to attract criminal liability, the potential penalties and effort associated with a misleading advertising investigation or challenge can nevertheless be significant (thus a practical dose of compliance and vetting advertising before launched is prudent).
For more about Canadian misleading advertising laws see: Misleading Advertising.
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We are a Toronto based competition and advertising law firm offering business and individual clients efficient and strategic advice in relation to competition/antitrust, advertising, Internet and new media law and contest law. We also offer competition and regulatory law compliance, education and policy services to companies, trade and professional associations and government agencies.
Our experience includes advising clients in Toronto, across Canada and the United States on the application of Canadian competition and regulatory laws and we have worked on hundreds of domestic and cross-border competition, advertising and marketing, promotional contest (sweepstakes), conspiracy (cartel), abuse of dominance, compliance, refusal to deal and pricing and distribution matters. For more information about our competition and advertising law services see: competition law services.
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For more information about our firm, visit our website: Competitionlawyer.ca
Templates/precedents and checklists to run promotional contests in Canada
Templates/precedents and checklists to comply with Canadian anti-spam law (CASL)
