Competition Bureau Investigation Leads to Criminal Charges Against Telemarketers

OTTAWA, June 29, 2001 — The Competition Bureau announced today that an investigation into deceptive telemarketing activities aimed at consumers in Canada and New Zealand led to criminal charges earlier this week in Montreal against four of the city's telemarketing companies, their principal directors, and individual telemarketers.

The charges, laid under the misleading advertising provisions of the Competition Act, stem from alleged misleading representations carried out by Farber Blake Corp., S.D. Prestige Enterprises Ltd., L.A. Premiums, and J.C. & A. The four companies allegedly contacted consumers by phone and informed them that had been selected as prize winners. The consumers would then be told that, in order to claim their prize, they had to buy one of the company's promotional items. The Bureau alleges the companies sold these promotional items at substantially inflated prices and that misrepresentations were made regarding the nature, value and quality of both the prizes and the promotional items sold.

"We are committed to ensuring that Canadian consumers are protected under the law against deceptive telemarketing schemes," said Raymond Pierce, Deputy Commissioner of the Bureau's Fair Business Practices Branch. "We will continue to thoroughly investigate such cases in our continued efforts to provide Canadians with a marketplace that is both fair and free of deceptive business practices."

The Bureau started its investigation after consumers across Canada complained about the companies' telemarketing practices. Complaints also came from New Zealand residents who had been contacted by one of the companies charged. Consumers who suspect they have been the victim of deceptive telemarketing practices or who want information on the application of the Competition Act, should contact the Bureau's Information Centre at 1-800-348-5358, or visit our Web site at www.competitionbureau.gc.ca.

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.

Media Enquiries:
Michel Marquis
Senior Communications Advisor
Competition Bureau
819-953-4257