Record Fine Imposed Against Director of Three Telemarketing Companies

OTTAWA, December 1, 2000 — The Competition Bureau announced today that Stephen Clark, the Director of three Montreal-based telemarketing companies, was sentenced to pay a $300,000 fine after pleading guilty to three criminal charges of misleading advertising under the Competition Act on September 22, 2000. This amount represents the highest fine ever imposed against an individual for deceptive telemarketing under the 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.

During that time, the company phoned and sent letters to consumers telling them they would get valuable awards or "premiums" if they bought promotional products such as pens and coins that the company was selling at what turned out to be inflated prices. Consumers have stated that they were misled about the nature, value and quality of the awards, and that extra conditions and restrictions required to collect the awards were either not mentioned or were only partially disclosed by the company.

"We hope this case will send a clear message to operators of deceptive telemarketing and direct mail operations," said Johanne D'Auray, Deputy Commissioner of Competition, Fair Business Practices. "The Bureau will not hesitate to take action against those who engage in deceptive telemarketing practices - especially activities which target consumers who are vulnerable."

S.S. Viking and S.C. Canadian Clearing Centre telemarketers are currently awaiting trial on charges of misleading advertising under the Competition Act. Their next court appearance is scheduled for February 6, 2001 in Montreal.

For more information, please contact:

Julie Hébert
Senior Communication Advisor
Communications Directorate
819-953-4257