Montreal man pleads guilty for his role in deceptive telemarketing operations

OTTAWA, June 4, 2002 — The Competition Bureau announced today that Marvin Redler of Dollard des Ormeaux, Quebec, has pleaded guilty to nine misleading advertising and deceptive telemarketing charges under the Competition Act. He will be sentenced in a Montreal court on September 26, 2002. The guilty plea follows a lengthy criminal investigation conducted by the Bureau relating to deceptive telemarketing and direct mail practices carried out by a number of Montreal-based telemarketing firms from 1994 to 1999.

Mr. Redler was a telemarketer with S.S. Viking Industries and C.S.R.H. Heritage Group Inc., which were charged with misleading advertising under the Act in December 1999 and May 2000, respectively. Both companies and their directors pleaded guilty and received sentences ranging from large fines to jail terms. Mr. Redler was also the director of two telemarketing companies, F.D.G. Fortune One Group and F.N.G. First National Galleries, which were charged with deceptive telemarketing by the Bureau on September 21, 2000.

Consumers across Canada were contacted by Mr. Redler and other telemarketers, and told that they had been specially selected to win various prizes or "premiums". In order to receive their prizes, consumers had to purchase items such as pens, coins and lithographs at highly inflated prices. The prizes turned out to be of a much lower quality and value than consumers were led to believe. Consumers were also required to send in additional fees to collect their prizes. These additional fees were not disclosed, or were only partially disclosed, to consumers at the time of purchase. The Competition Bureau received approximately 3,100 consumer complaints about the four companies involved, with reported losses totalling approximately $1,040,000.

"Misleading advertising and deceptive telemarketing are serious crimes which target innocent consumers," said Raymond Pierce, Deputy Commissioner, Fair Business Practices Branch. "The Bureau will continue to monitor telemarketing operations to ensure that they conduct their business in compliance with the Competition Act."

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
Senior Communications Advisor
Communications Branch
819-953-8982, or 613-296-2187 (cell)