Competition Bureau investigation leads to a $250,000 fine in a price maintenance case

OTTAWA, October 10, 2002 — A Competition Bureau investigation in the beer industry has led to the conviction in Federal Court of The Stroh Brewery Company (Quebec) Ltd. (Stroh), which pleaded guilty to charges of price maintenance on their products. The company was sentenced to pay a $250,000 fine, the largest fine imposed to date in a price maintenance case.

"Consumers lose when retailers are discouraged by suppliers from reducing their prices," said Raymond Pierce, Deputy Commissioner of Competition. "For that reason, the Competition Bureau will vigorously safeguard the competition process to assure that consumers benefit from the lowest possible prices for goods and services."

The Bureau's investigation, which started in 2001, revealed that Stroh engaged in price maintenance in convenience stores and other retail outlets in the Province of Quebec for the sale of bottled beer by the case of various sizes. In particular, convenience stores and retail outlets had to maintain the price specified by Stroh for the products, thereby avoiding any discounting of the products.

Copies of the documents filed before the Federal Court, Trial Division, in Ottawa, are available on the Competition Bureau's Web site at the following link (Agreed Statement of Facts - PDF: 241KB) - (Indictment - PDF: 66KB) - (Prohibition Order - PDF: 218KB). Certified copies of the filed documents may be obtained from the Court Registry - (Court File No. T - 1504-02).

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.

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