First Ever Interim Order Under New Civil Provisions Issued by Competition Tribunal Against Universal Payphone Systems Inc.

OTTAWA, September 27, 1999 — The Competition Bureau announced today that the Competition Tribunal has, for the first time under new civil provisions, granted the Commissioner of Competition's application for an interim order to prevent Universal Payphone Systems Inc. of Mississauga, Ontario from continuing to use certain marketing practices in the promotion of its payphone business opportunity. The civil misleading representations provisions were added to the Competition Act in recent amendments.

The application, which was filed on September 15, 1999, asked the Tribunal to order Universal to cease marketing its payphone business using misleading representations relating to matters such as: the type and quality of payphone the investor can expect to receive, the income potential for investors, the "turn key" nature of the investment, and its membership in any consumer protection agency or bureau that is not a recognized and fully independent consumer protection agency. The Bureau argued that serious harm would be suffered by investors if the representations continued to be made.

"I am pleased to see that these new provisions of the Act can be applied quickly to promote fair competition in the marketplace and at the same time ensure that Canadians are protected from misleading representations" said Konrad von Finckenstein, Commissioner of Competition.

The order is in effect for a period of twenty-eight days, in which the Bureau will consider the filing of an application for a permanent order with the Tribunal.

Universal is engaged in the sale and promotion of a business opportunity to set up individual payphone businesses. Universal promotes its business through the use of radio and print advertising on a national basis. The market for payphones in Canada was opened to competitive entry following a decision by the CRTC in July, 1998.

For further information, please contact:

Julie Hébert
819-953-4257