Montreal Telemarketing Companies Plead Guilty for Deceptive Telemarketing Activities

OTTAWA, June 19, 2002 — Telemarketing company Tamec Inc., and its subsidiaries Commercial Information Bank of Canada and Deev Inc., pleaded guilty in a Montreal court to deceptive telemarketing and misleading advertising charges under the Competition Act. The guilty pleas result from an investigation by the Competition Bureau into deceptive telemarketing activities aimed at Canadian businesses and government institutions, as well as religious, educational and non-profit organizations, across Canada.

In October 2001, charges were laid against Tamec Inc., Commercial Information Bank of Canada and Deev. Inc., following a criminal investigation by the Bureau. The accused parties pleaded guilty in the Court of Quebec and were fined $300,000. The court also imposed an order to be in effect for a period of 10 years which prohibits the convicted parties and their officers from engaging in similar deceptive marketing practices. Tamec has also agreed to commit an additional $180,000 towards a remediation program which will offer victims up to $300 each in free goods and services.

From February 1997 to August 2001, the Bureau received hundreds of complaints alleging that the telemarketers misrepresented the purpose of their calls, provided false information with respect to the prior existence of a business relationship with Tamec, and did not disclose restrictions which applied to the return of products. Complainants also alleged that the telemarketers did not disclose that, by agreeing to accept delivery of one edition of a Tamec business directory, they were actually entering into a multi-edition subscription.

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

The accused parties marketed various business directories as well as Web-based advertising services under the names Zip411Net, Zip411Com, Affaires411, Business411, Bizcom, Zipcom, Commercial Information Bank of Canada, B.I.C.C., Bureau d'Informations Classifiées du Canada, et Guide CD-ROM des entreprises du Québec.

Consumers who suspect they have been the victim of deceptive telemarketing are encouraged to contact the Competition Bureau's Information Centre at 1-800-348-5358, or Project PhoneBusters at 1-888-495-8501.

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

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