Competition Bureau Obtains Order to Stop the Marketing of Anticorrosion Device

OTTAWA, December 13, 2001 — Canadian consumers will no longer be misled by false claims about an electronic anticorrosion device known as Total Protection. The Competition Bureau filed a consent order with the Competition Tribunal against the marketing practices of Antirouilles Électroniques TP, Garantie Express Inc. and Mr. Jacques Nadeau, president and secretary of these companies, for the promotion of Total Protection.

"Consumers can easily be duped by false claims that can only be assessed by experts with specialised technical knowledge," said Raymond Pierce, Deputy Commissioner of Competition, Fair Business Practices Branch. "Other electronic anticorrosion devices with similar performance claims are being examined by the Bureau."

Marketed primarily in Quebec, the $300 device claimed to protect the entire body of a car against rust. The Bureau determined that the tests submitted by Mr. Nadeau did not demonstrate that the Total Protection device could protect the entire surface of a vehicle against corrosion.

Under the terms of the consent order, the two companies and Mr. Nadeau have agreed to cease marketing Total Protection and an extended anticorrosion guarantee. In addition, the parties have agreed not to market similar products in Canada unless adequate and proper tests are carried out. The order also provides that affected consumers be informed by letter that they have the choice to either keep the two products and obtain a complete eight-year anticorrosion insurance policy or get their money back.

The consent order was issued under section 74.01 of the Competition Act, which deals with misleading representations,unsubstantiated performance claims and purported guarantees which have no reasonable prospect of being carried out. This is the second consent order obtained by the Bureau against electronic anticorrosion devices. The first was on September 12, 2000 involving Gestion Professionnelle (Electroprotections) Inc.

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.)
or the Competition Tribunal Web site: www.ct-tc.gc.ca