Competition Bureau Settles Case Involving Energy Saving Paint

OTTAWA, May 13, 2003 — The Competition Bureau announced today that it has settled a case arising out of an inquiry regarding certain marketing practices of Para Inc., of Brampton, Ontario. The matter has been resolved by way of a Consent Agreement filed today with the Competition Tribunal.

The Consent Agreement concerns a paint product, the Radiance^TM low e-line, which Para claimed would generate energy savings for its users. The product was sold in Canada for a limited time in 2001.

As a result of an analysis of tests conducted by both the Competition Bureau and Para with respect to Radiance paints, the Bureau and Para have agreed to limitations on performance claims made in the marketing of this paint. Para has agreed to:

• (a) not claim energy savings in an average residential house greater than five per cent;
• (b) state that the energy savings will vary according to the climate in the region where the building is situated and the quality of construction of the building among other factors;
• (c) not state the heat transference qualities without identifying the energy saving qualities in accordance with paragraph (a) above.

"This agreement was reached as a result of Para's cooperation with the Bureau in ensuring that the parameters regarding potential energy savings were set out prior to any future advertising of average residential house energy savings provided by the product," said Raymond Pierce, Deputy Commissioner.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For media enquiries, please contact:
Maureen McGrath
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819-953-8982, or 613-296-2187 (cell)

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Information Centre
Competition Bureau
1-800-348-5358