Micro Ear 2000 Found Guilty of Offence Under Competition Act

OTTAWA, September 10, 1996 — The Acting Director of Investigation and Research under the Competition Act, Francine Matte, Q.C., announced today that Mr. Jack Douglas, also known as Mr. John Lindsay Douglas, and 600620 Saskatchewan Ltd., carrying on business as Micro Ear 2000, have each pleaded guilty to six counts of misleading advertising under the Competition Act.

The illegal conduct involved representations that the product in question, a hearing device, could tune out background noise and "really" work in a crowd to enable one to hear "clear, crisp sound." Expert testing of the device showed these representations to be false. The representations were contained in flyers that were distributed across Canada through the mail.

Fines of $75,000 on the company and $5,000 on Mr. Douglas have been imposed by the Saskatchewan Provincial Court.

In addition to the fines, a Prohibition Order was imposed on both Mr. Douglas and the company for three years. The terms of the order require, among other things, that Mr. Douglas and the company not misrepresent to the public the sound quality or clarity of hearing devices. The Order specifically prohibits Mr. Douglas from incorporating or causing the incorporation of companies for the purpose of continuing or repeating the offence.

"Effective enforcement of the Competition Act benefits not only businesses but also consumers, particularly in circumstances where vulnerable groups, such as seniors, may have been victimized," Ms. Matte said. "This case also demonstrates that the Bureau is succeeding in obtaining appropriate penalties against individuals."

Mr. Douglas was also sentenced to probation for a period of three years during which time he is to perform 100 hours of community service and report to a Probation Officer.