Director of Three Telemarketing Companies Pleads Guilty to Criminal Charges under the Competition Act

OTTAWA, September 22, 2000 — The Competition Bureau announced today that Stephen Clark, the Director of three Montreal-based telemarketing companies, pleaded guilty to three criminal charges of misleading advertising under the Competition Act.

The guilty plea follows a lengthy criminal investigation conducted by the Bureau, relating to deceptive telemarketing and direct mail practices carried out by S. S. Viking Industries, S. C. Canadian Clearing Centre Inc., and Exclusive Premium Distribution Centre S. C. Corporation during the period of March 1, 1994 to November 7, 1997. Hundreds of victims across Canada have reported losses totalling close to a million dollars as a result of these actions.

Over a three year period, the companies solicited consumers by phone and sent letters asking them to purchase items such as pens and coins at what turned out to be inflated prices. Consumers have stated that upon receipt of the items, they realized that the products they had purchased were worth far less than what they had been led to believe. Consumers were required to send in additional fees to claim their awards. These additional fees were not disclosed, or were only partially disclosed, to consumers at the time of purchase. Consumers have stated that misrepresentations were also made concerning the awards they were promised. For example, some consumers were under the impression that they had won a large speed boat, when in fact they received an inflatable rubber dinghy.

S.S. Viking and S.C. Canadian Clearing Centre telemarketers are currently awaiting trial on charges of misleading advertising under the Competition Act. Mr. Clark faces sentencing at a later date.

For more information, please contact:

Claire McLaughlin
819-994-0390

or

Julie Hébert
819-953-4257