IKO Industries Ltd. Modifies its Loyalty Program Following Competition Bureau Investigation

OTTAWA, March 31, 2003 — The Competition Bureau announced today that its competition concerns regarding the distributor loyalty program of IKO Industries Ltd. (IKO), Canada's largest manufacturer of asphalt roofing products, have been resolved.

The Bureau commenced its investigation in April 2001 after receiving complaints alleging that IKO was impeding the entry and expansion of competing manufacturers of asphalt roofing shingles by abusing its dominant market position.

The Bureau's competition concerns focused on the effects of loyalty rebates on the supply of low-end residential asphalt roofing shingles through certain distributors of roofing supplies.

Once made aware of the Bureau's concerns, IKO voluntarily changed its rebate program giving eligible distributors a choice between loyalty and volume based rebates. The modifications will reduce barriers to entry and enhance competition by diminishing the incentive to exclusivity inherent in loyalty rebates.

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:
André Leclair
Senior Communications Advisor
Communications Branch
819-953-4257 or 613-290-1583 (cell.)

For general enquiries, please contact:
Information Centre
Competition Bureau
1-800-348-5358