Quebec Company Pleads Guilty to Charges of False and Misleading Representation

OTTAWA, November 14, 2001 — The Competition Bureau announced today that Gotham Industries Inc., a chemical company based in Ste-Thérèse, Que., pleaded guilty to three counts of false or misleading representation on the quantity of their products. The Court of Quebec imposed a $500 fine for each charge, totalling $1,500, under the Consumer Packaging and Labelling Act. The Court ordered the correction of 248 packages found in violation and ordered that they be inspected by a Competition Bureau officer before they are sold.

"Labelling allows consumers to make informed choices," said Raymond Pierce, Deputy Commissioner of the Fair Business Practices Branch. "When such labelling is incorrect, consumers lose, although they may not be aware of it initially."

Last March, the Bureau began a detailed inspection of the packaged goods produced by Gotham Industries Inc., to verify the net quantity. This inspection revealed that packages of paint thinner, methyl hydrate and antifreeze did not hold the same amount of net quantity that had been labelled on the package. The quantity was, in fact, lower than what was indicated on the label. As a result, the Bureau alleged that Gotham Industries Inc. gave misleading information to consumers, who ended up paying more for less.

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 public enquiries, please contact:
Competition Bureau's Information Center
1-800-348-5358

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