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Annual Report of the Commissioner of Competition for the year ending March 31, 2002


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Promoting Competition

The Competition Bureau promotes competition in a number of ways, including the following:

making regulatory interventions
contributing to departmental and interdepartmental policy making
providing comments to policy advisory bodies
participating in international organizations such as the Organization for Economic Co-operation and Development and various trade bodies
giving speeches and holding seminars.

Interventions

As the statutory champion of competition, the Bureau has the right to intervene before federal bodies, and may also do so with leave before provincial bodies. The Bureau's aim with these interventions is to be the objective voice of economic competitive analysis.

Interventions about the deregulation of industries serve a dual purpose. First, they sustain and promote a competitive environment. Second, they ensure that when regulation is required, it takes the form that least distorts competition and efficiency in the affected markets.

In 2001-2002, the Bureau made a number of significant interventions in areas such as electricity, and marine, air and rail transportation. The following pages outline the Bureau's interventions in the past year.

**Competition Bureau Interventions, 2001-2002**
Industry Sector and Issue	Competition Bureau Intervention	Outcome and Potential Benefits for Canadians
Transportation: Water Submission to the House of Commons Standing Committee on Government Operations and Estimates Concerning Bill C-14, An Act Respecting Shipping and Navigation, and to Amend the Shipping Conferences Exemption Act, 1987, and Other Acts	On April 24, 2001, the Bureau made a submission to the Standing Committee concerning Bill C-14 and the proposed amendments to the Shipping Conferences Exemption Act (SCEA). The key amendments involved individual service contracts, reduction of the notice period for independent action, removal of tariff filing, and electronic filing of documents. While the Bureau supported the amendments, it expressed its long-standing opposition to SCEA, and called for an end to the exemption for shipping conferences from terms of the Competition Act. However, in the event that the Committee decided to endorse the continuation of the exemption, the Bureau recommended that a sunset clause be introduced, together with additional measures to enhance competition (e.g. the introduction of confidential individual service contracts, reduction of the scope of the exemption, and clarification of certain provisions).	The Act received Royal Assent and went into force on January 30, 2002. The amendments, which address the Bureau's concerns, are expected to create efficiency and introduce competition among members of a shipping conference.
Transportation: Air Submission to Transport Canada on the Policy for International Scheduled Air Services.	On April 20, 2001, the Bureau made a submission to Transport Canada in response to its document Canada's Policy for International Scheduled Air Services: Issues for Discussion, and recommended changes to both the external and internal aspects of the policy. External Policy Canada should use bilateral negotiations to convince countries to adopt as liberal an external policy as possible to encourage competition. Canada should not automatically adopt a discriminatory approach to foreign carriers when foreign governments maintain a discriminatory approach to Canadian carriers. Rather, Canada should consider all arrangements and select those of greatest benefit to Canadian consumers and air carriers. A new international air policy should seek reciprocal fifth-freedom rights, which allow carriers to pick up local traffic in one foreign country and carry it to a third country. The policy governing all-cargo rights should focus on significant potential benefits for competition and consumers. The Bureau favours a two-track approach to Canada's bilateral air transport agreements, one for passenger service and one for all-cargo service. Rules designed to protect Canadian carriers from price competition by restricting pricing freedom should be eliminated or amended, under minimal regulatory oversight, to allow third-country carriers to implement lower tariffs than those filed by Canadian carriers. Effective safety oversight, rather than ownership, should be the primary factor when considering the designation of foreign carriers. Canada should take an active leadership role in the pursuit of greater air liberalization at the World Trade Organization, the Organisation for Economic Co-operation and Development and the Organization of Petroleum Exporting Countries. Internal Policy The new international air policy should give foreign carriers more access to cities in Canada even when Canadian carriers are not interested in serving cities in the domestic markets of the foreign carriers. The new internal policy should eliminate the requirement that Canadian carriers serve these cities, allowing the market to determine the viability of scheduled air services. Alternatively, the international policy should encourage the entry of new Canadian carriers into the market by significantly reducing from 300 000 the annual number of one-way origin-to-destination passengers a foreign market is required to receive through scheduled air service before qualifying to receive a second Canadian carrier. The new policy should provide as a rule for the awarding of multiple designations of carriers to a market, or apply the "use-it-or-lose-it" policy (in which the government allows other carriers to apply to serve a market designated to another carrier when that carrier's service is below what it originally proposed) nine months after designation. Multiple carriers should receive liberal access to fifth-freedom rights, including those on a code-share basis. The Cargo Transshipment Program should be made widely available to create a level playing field among airports.	The Bureau believes that adopting a more liberal regime for international air service will give air passengers the benefits of increased competition. Transport Canada is expected to release its new policy for international scheduled air services in the near future.
Telephone Companies CRTC Price Cap Review for Local Telephone Companies Public Notice CRTC 2001-37	On March 13, 2001, the Canadian Radio-television and Telecommunications Commission (CRTC) initiated a public proceeding to assess the effectiveness of the price cap regime for local telephone companies and to determine whether changes were required to ensure the regime remained effective when a new phase was introduced in 2002. On October 22, 2001, the Bureau submitted comments to the CRTC designed to ensure the CRTC would take competition issues into consideration when revising the pricing regime for the telecommunications industry.	The Bureau supports the continuation of the existing price cap structure with some modifications that would do the following: foster competition in residential and business markets throughout Canada protect consumers and competitors from abuse of market power by the major local telephone companies ensure that market uncertainty is minimized for consumers, firms and investors. As of March 31, 2002, the CRTC's decision was pending.^*
Telephone Companies Expansion of Local Calling Areas Public Notice CRTC 2001-47	On April 27, 2001, the CRTC initiated a public proceeding to establish a set of general principles and criteria for assessing applications for expanding local telephone calling areas. On November 15, 2001, the Bureau submitted comments to the CRTC on these general principles and criteria.	The Bureau identified a number of problems with expanding local calling areas through regulation, including the cost of ongoing regulation, the adverse impact on competition, and the negative effect on consumers. In light of these concerns, the Bureau recommended that local calling areas be determined instead by the interplay of competitive market forces. Each service provider should have the flexibility to offer a variety of price-geographic coverage plans to consumers, who would then be free to choose the plan most appropriate to their requirements. As of March 31, 2002, the CRTC's decision was pending.
Telephone Companies Forbearance Outside Traditional Territories Decision CRTC 2001-534	The CRTC initiated a proceeding on conditional forbearance from the regulation of current and future wireline services offered by the major incumbent telephone companies operating outside their traditional territories. The Bureau agreed with the companies that they lacked market power outside their traditional geographic markets. Further, it agreed that existing competitive safeguards limit the companies' ability to engage in anti-competitive activity in other wireline service and geographic markets by leveraging their dominant position within their own territories. The safeguards reduce the likelihood and incentives for cross-subsidization from utility to competitive services, thereby limiting the opportunity and incentive for the major telephone companies to engage in anti-competitive pricing both within and outside their traditional territories.	The Bureau supported conditional forbearance. On August 31, 2001, the CRTC granted conditional forbearance, thereby reducing the regulatory burden on incumbent telephone companies and enhancing their ability to compete outside their traditional operating territories. This will benefit both residential and business customers.
Alberta Electricity Industry Structure Review	The Competition Bureau provided comments to the Alberta Electricity Industry Structure Review during the fall and winter of 2001-2002, including a written submission to the Alberta Department of Energy in February 2002. The Alberta Department of Energy initiated this review to evaluate how to structure the functions institutions with a primary role in the operation of the electricity industry carry out. The Bureau made a number of recommendations, including that effective market surveillance be established, competition-related principles drafted, and institutional models for market surveillance developed. The Bureau also recommended that generating-capacity control held by the market operator be transferred to private parties, and supported combining certain electricity market and system control functions in a single agency (an independent system operator) as the most effective way to ensure efficient competition.	Many of the Bureau's recommendations are included in the Review's final report. The Bureau is continuing its intervention by working with the Alberta government to implement changes to the Alberta market. It is anticipated the proposed structural changes will improve market oversight, resulting in a more efficient and competitive electricity market in Alberta.
Nova Scotia Power Incorporated: Energy Solutions Packages Application	A hearing before the Nova Scotia Utility and Review Board concerned an application by Nova Scotia Power Incorporated to make flexible rate and product packages (Energy Solutions Packages) available to consumers. The Bureau's intervention in March and April 2001 provided a competition policy perspective on specific aspects of the application. The Bureau supported Nova Scotia Power's objective of competing more effectively in Nova Scotia electricity markets. At the same time, the Bureau stated that maximizing the benefits for Nova Scotia from its electricity sector and introducing natural gas required competition to take place within an efficient and effective regulatory structure. Consequently, the Bureau recommended seven measures to promote more efficient generation and use of electricity under regulation and, eventually, to facilitate the efficient and orderly transition to competition. It also recommended four measures to address its specific concerns with the application.	In its July 9, 2001, decision, the Board denied Nova Scotia Power's application on the grounds that it did not provide for adequate regulatory oversight. The Board also deferred to future hearings certain matters the Bureau had raised.
Nova Scotia Energy Strategy Review	On May 31, 2001, the Bureau submitted an analysis of competition issues in the Nova Scotia electricity system to the province's energy strategy review. The purpose of the submission was to help the province determine whether and how to restructure the electricity industry to provide more competition. The Bureau recommended that Nova Scotia adopt an evolutionary approach to restructuring, reflecting the specific characteristics of the provincial electricity system. The Bureau recommended several key steps to restructuring, including the following: placing initial emphasis on restructuring the electricity rates of Nova Scotia Power Incorporated giving subsequent consideration to internal restructuring within Nova Scotia Power to enhance competition taking further restructuring measures only after carefully analyzing Nova Scotia's options for creating competition creating an effective interface between competition law and any remaining regulation for monopoly-essential facilities and products subject to competition.	In its December 12, 2001, report, the provincial government provided a comprehensive energy strategy for Nova Scotia that includes the gradual introduction of competition in electric power generation, as the Bureau had recommended.
Ontario Electricity Market Competition Oversight	In March 2002, the Competition Bureau signed an agreement with the Ontario Energy Board and the Independent Electricity Market Operator to work together to ensure effective competition oversight in Ontario's new electricity markets. The agreement outlines each agency's roles and responsibilities in the new markets and provides a framework for cooperation and coordination where overlap exists.	The agreement will help ensure that competition concerns are effectively addressed in the new markets, which will, in turn, help ensure a more certain regulatory framework for businesses, and minimize costs for the Ontario Energy Board and the Independent Electricity Market Operator, as well as for businesses.
Sempra Atlantic Gas: Initial Tariff Application	In January and February 2001, the Bureau intervened before the Nova Scotia Utility and Review Board to support open and effective competition, particularly at the household level, in the emerging Nova Scotia natural gas market. This intervention was discussed in detail in the Bureau's 2000-2001 annual report.	The Board accepted all nine of the Bureau's recommendations in its May 3, 2001, decision.

^{^* The CRTC rendered its decision on May 30, 2002.}

ID-ROM: Multilevel Marketing and the Competition Act

On June 4, 2001, the Bureau launched 2001 Multi-level Marketing and the Competition Act, an animated multimedia tool designed to inform Canadian businesses and consumers about the multilevel marketing and pyramid selling provisions of the Competition Act.

Available on both ID-ROM and the Web, the animated presentation tells the story of a Canadian entrepreneur as she learns how to operate a multilevel marketing business that conforms to the law. To obtain a copy of the ID-ROM, contact the Bureau's Information Centre (contact information is at the front of this report).

Internet Sweeps

In August 2001, the Bureau launched regular Internet sweeps to evaluate Canadian on-line marketing sites for compliance with the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. Sweeps have focussed on sites marketing a variety of products and business opportunities, including textile products, articles containing precious metals and work-at-home businesses. The project team also participated in International Internet Sweep Day, which focussed this year on Web sites making deceptive or misleading claims about health products and services. The sweep was conducted by the International Marketing Supervision Network, a membership organization consisting of the trade practices authorities from 29 countries, including Canada, and representatives from the European Commission and the Organisation for Economic Co-operation and Development.

Enforcement Guidelines

Abuse of Dominance Guidelines

On August 1, 2001, the Bureau released Enforcement Guidelines on the Abuse of Dominance Provisions to help business people understand the Bureau's enforcement policy with respect to the abuse of dominance provisions (sections 78 and 79) of the Competition Act. The guidelines define market dominance, discuss abuse of dominance, and outline the Bureau's approach to enforcement and corrective measures designed to ensure a fair and efficient marketplace. The guidelines also contain crucial legal information, including examples of Competition Tribunal decisions on cases of abuse of dominance.

The guidelines are an example of the Bureau's continuing efforts to ensure a more transparent and predictable enforcement policy. When preparing the final document, the Bureau took into account comments provided by stakeholders, academics, lawyers, businesses and the general public during consultations on a draft version.

Guide for the Labelling and Advertising of Pet Foods

On behalf of the Working Group on the Labelling and Advertising of Pet Food in Canada, the Bureau released Guide for the Labelling and Advertising of Pet Foods on September 21, 2001. The guide, which was the result of broad consultations with the Canadian public and key industry stakeholders, addresses consumers' concerns about the lack of uniformity and monitoring of pet food labelling by setting out industry standards for the labelling and advertising of pre-packaged products. The working group comprised industry stakeholders and federal government officials.

"Made in Canada" Claims Relating to Diamonds

On November 13, 2001, the Bureau announced a new enforcement policy on false or misleading representations of Canadian diamonds. The new policy is outlined in the Bureau's Enforcement Policy on the Marketing of Canadian Diamonds and its updated Guide to "Made in Canada" Claims. The latter clarifies what can be advertised as a Canadian diamond, establishing as an underlying principle that goods mined or harvested in Canada are considered to have been made in Canada.

Ontario Net Quantity Blitz

Between November 13 and 30, 2001, the Bureau inspected 51 companies in southern Ontario to determine whether their pre-packaged non-food consumer products comply with the net quantity and labelling provisions of the Consumer Packaging and Labelling Act and Regulations.

Of the 230 products inspected, 36 percent had labelling violations and 14 percent had net quantity violations (that is, there was less product in the package than the label indicated). The Bureau required the companies to correct all violations before they could ship the products from their premises, and sent 18 letters to firms committing significant violations to inform them that they would be subject to a second inspection.

Special Constable Status for Competition Law Officers

On February 13, 2002, the Ontario Provincial Police granted special constable status to 10 competition law officers from the Bureau's National Capital Region office.

Competition law officers investigate criminal offences under the Competition Act, such as deceptive telemarketing, conspiracy to fix prices and bid rigging, and enforce the Act.

Special constable status allows these officers to serve summonses and subpoenas in Ontario under the Competition Act and the Criminal Code. The appointments are aimed at improving the criminal investigative process and relieving police agencies from having to serve court documents for anti-competitive offences.

Conferences

The Competition Bureau participates in conferences both at home and abroad to make and maintain contact with academics and professional groups in various industry sectors.

On May 21, 2001, Bureau staff attended the annual Carlson-Wagonlit symposium in Niagara-on-the-Lake, Ontario, recapping for participants the restructuring of the Canadian airline industry and the Bureau's enforcement activity in this sector.

On May 25, 2001, a Bureau representative made a presentation to the Institut de l'énergie et de l'environnement de la Francophonie on the need for, and the relationship among, regulation, market surveillance and competition law in emerging electricity markets.

On June 4, 2001, Bureau staff attended the annual general meeting of the Direct Sellers Association in Quebec City. During the conference, Bureau staff introduced 2001 Multi-level Marketing and the Competition Act (see page 12).

On June 18, 2001, Bureau staff participated in the U.S. Competitive Telecommunications Association's Spring General Conference in Seattle, Washington, providing an outline of the regulatory landscape for U.S. firms interested in competing in the Canadian telecommunications industry.

On June 19 and 20, 2001, Bureau staff attended a conference in Toronto called Canadian Competition Policy: Preparing for the Future, which the Bureau organized in partnership with the Richard Ivey School of Business at the University of Western Ontario and Industry Canada. The Bureau contributed a background paper, "Competition Policy in Canada: Past and Future", that examined the evolution of competition policy in Canada since its origin, and anticipated some of the potential challenges of the 21st century.

On October 12, 2001, Bureau staff attended the 2001 Invitational Forum on Competition Law: Section 45 at the Crossroads, in Toronto. Discussions focussed on possible alternatives to the current conspiracy provisions in the Competition Act.

On November 22, 2001, Bureau staff made a presentation on deceptive telemarketing to the annual meeting of the Canadian Survey Research Council, demonstrating how deceptive telemarketers make their calls and persuade consumers and businesses to part with their money.

On December 14, 2001, Bureau staff made a presentation to the board of directors of the Canadian Association of Chain Drug Stores to familiarize directors with the Competition Bureau and the Competition Act.

On January 31 and February 1, 2002, Bureau staff attended the American Bar Association's workshop on international cartels. With colleagues from the United States, the European Union and Australia, Bureau staff reviewed hypothetical situations in which members of cartels might seek immunity in the respective jurisdictions.

On February 4, 2002, Bureau staff gave a presentation to an MBA class at McMaster University in Hamilton, entitled "If It's Too Good to be True... . The presentation", which covered the Competition Bureau, the Competition Act and Bill C-23 (now called An Act to Amend the Competition Act and the Competition Tribunal Act), gave students a chance to learn about call schemes and see how deceptive telemarketers operate.

In February 2002, Bureau staff gave presentations at the Insight conference on advertising law in Toronto on the draft guide on Internet advertising and the multilevel marketing and pyramid selling provisions of the Competition Act.

In February 2002, members of the Bureau attended meetings with PhoneBusters in Ottawa and North Bay. The meetings were held to discuss new partnership arrangements for management and funding and to discuss the evolution of PhoneBuster's coverage of consumer scams in the areas of telemarketing, deceptive Internet representations and deceptive mail. A system of information sharing was also discussed.

In February 2002, Bureau staff participated in a one-day symposium in Chicago on competition issues in the airline industry, organized by the DePaul University Business Law Journal. Bureau staff provided an overview of the Bureau's enforcement activities in the Canadian airline industry and related issues.

On March 13 and 14, 2002, the Competition Bureau and other North American law enforcement agencies participated in the Bureau-sponsored New Partnerships in Law Enforcement conference in Ottawa, held to develop new partnerships and improve existing ones in fighting consumer and business fraud. Bureau staff gave a presentation on deceptive telemarketing and its law enforcement partnerships in this area, namely, the Toronto Strategic Partnership, covering deceptive telemarketing in Ontario and the northeastern and mid-western United States, Project Emptor, covering British Columbia and the northwestern United States, and Project Colt, covering Quebec and the northeastern United States.

On March 22, 2002, Bureau staff participated in the Insight conference on the international dimensions of competition law. The Bureau contributed a paper, "Strengthening a Pillar of Canadian Competition Law: Enforcing and Amending the Abuse of Dominance Provisions of the Competition Act". Bureau staff also participated on a panel on international cartels.

On March 26, 2002, Bureau staff participated in a symposium held by the Chaire de Tourisme de l'Université du Québec à Montréal on the airline and tourism industry in Quebec, providing an overview of the Bureau's enforcement mandate and investigations in the Canadian airline industry.

Bureau staff also gave a number of presentations to private and public sector organizations on bid rigging and other aspects of the Competition Act.

International Activities

The Bureau participates in international activities to promote the development of coordinated competition policy in an increasingly global environment and to enhance the effectiveness of enforcement through cooperation with competition agencies around the world.

International Competition Network

On October 25, 2001, senior officials from 14 competition authorities from around the world, including the Competition Bureau, announced the establishment of the International Competition Network (ICN) to provide competition agencies from developed and developing countries with a strong and broad network for addressing practical competition enforcement and policy issues. The Commissioner of the Competition Bureau was the Chair of the Interim Steering Group, which oversaw the development of the ICN leading up to its first annual conference, held in September 2002.

The ICN will focus on improving cooperation around the world in the area of competition policy and law and on enhancing convergence among authorities. The first ICN projects involve multijurisdictional merger control processes and the competition advocacy role of competition agencies.

Cooperation

With the increasing number of complex multijurisdictional competition cases, the need for improved cooperation and coordination grows. During 2001-2002, the Bureau worked closely with its counterparts around the world, primarily in the United States and the European Community, but also in other jurisdictions, including the United Kingdom, Australia and Mexico. This cooperation, which encompassed work on both specific cases and general policy issues, included the exchange of documents, and meetings and other contacts. Case-related cooperation dealt primarily with merger review, and cartel and deceptive marketing practices enforcement, and included notifications of enforcement actions, exchange of information on the parties and markets, the theory of particular cases, and the coordination of enforcement actions, including remedies. Merger cases included those involving Lafarge and Blue Circle, GE and Honeywell, Nestlé and Ralston Purina, and Seagram/ Diageo and Pernod Ricard. Cartel investigations included those relating to graphite and carbon products, bulk vitamins and related products, and methylglucamine. There is ongoing communication between the Bureau and foreign, particularly U.S., authorities with respect to deceptive mail and telemarketing cases.

The Bureau held bilateral meetings with the heads of the U.S. Department of Justice and Federal Trade Commission in February 2002, and with officials of the European Community in September 2001. Significant efforts to expand cooperation with the European Community over the past year included meetings between staff in the respective merger and cartel units to discuss issues specific to their areas of enforcement. These meetings served as a catalyst for building closer relations and promoting ongoing dialogue.

As highlighted below, the Bureau also finalized cooperation agreements and arrangements with other jurisdictions and agencies.

Canada and the Central American Four.

In November 2001, the Canadian Minister for International Trade announced the launch of free trade negotiations between Canada and four Central American countries: El Salvador, Guatemala, Honduras and Nicaragua. Canada is seeking to include competition policy provisions in the agreement, and the Bureau is playing a lead role in developing the Canadian position and in the negotiations on competition policy.

Canada and Singapore.

In February 2002, Canada and Singapore launched negotiations for a bilateral free trade agreement. One of Canada's objectives is to include competition policy provisions in the agreement. The Bureau is playing a lead role in developing the Canadian position and in the negotiations on competition policy.

Canada and Mexico.

On November 14, 2001, in Veracruz, Mexico, the governments of Canada and Mexico signed a cooperation agreement on competition law enforcement. The agreement resembled that signed by Canada and the U.S. in 1995, setting out a framework for notification, coordination and cooperation on enforcement activities, information exchange and conflict avoidance.

The agreement is designed to promote cooperation and coordination between competition authorities in both countries. It will also lessen the possibility and impact of differences in the application of their competition laws in an increasingly globalized economy. Consumers in both countries stand to benefit from enhanced competition in terms of prices and product choices.

The agreement will come into force following Senate approval in Mexico.

Canada and Chile.

On December 17, 2001, in Santiago, Chile, the Competition Bureau and Chile's competition agency signed a Memorandum of Understanding formalizing a cooperation arrangement built on commitments under the Canada-Chile Free Trade Agreement. The memorandum sets out a framework for notification, coordination and cooperation on enforcement activities, information exchange and conflict avoidance. It is also part of an ongoing effort to ensure that the Bureau has the tools to deal effectively with increasingly globalized markets.

Free Trade Area of the Americas.

The Bureau continued to lead the Canadian delegation to the Negotiation Group on Competition Policy in negotiations for a Free Trade Area of the Americas, and actively participated in six meetings in 2001-2002.

During this period, the Negotiating Group's work focussed on resolving differences in the draft text on competition policy as well as on issues relating to competition policy in smaller countries and those without competition regimes. The Bureau participated actively in the negotiation process and worked closely with other delegations to try to bridge gaps. In this way, Canada continued to seek a comprehensive framework on competition policy that included obligations from signatory countries to:

adopt or maintain a competition law
establish or maintain a competition agency
adhere to core principles of transparency, non-discrimination and procedural fairness
respect provisions for enforcement cooperation and coordination, consultations and peer review.

Canada also participated in technical sessions aimed at providing technical assistance to, and enhancing the capacity of, smaller countries and those without competition regimes. In particular, the Bureau gave presentations on the role it plays as an advocate for competition in Canada, on the conspiracy provisions of the Competition Act and on the road to reform.

World Trade Organization

Important aspects of the interaction between trade and competition policy were delineated in the Ministerial Declaration of the Fourth World Trade Organization Ministerial Conference in Doha, Qatar, in November 2001.

The Declaration sets out topics to be discussed in preparation for the Fifth Ministerial Conference in 2003, including core principles such as transparency, non-discrimination and procedural fairness, hard-core cartels, mechanisms for voluntary cooperation, and support through capacity building for competition institutions in developing countries.

Regulatory Reform Programme

Under the Regulatory Reform Programme, officials of the Organisation for Economic Co-operation and Development (OECD) reviewed Canada's competition law and regulations in 2001 and made recommendations on several key issues. These issues included the scope of the Commissioner's decision-making independence, the processes and procedures of the Competition Tribunal, the conspiracy provisions in the Competition Act, and the Bureau's resources. The recommendations formed the basis of a peer review by the OECD's Competition Law and Policy Committee in October 2001. The final OECD report on Canada's regulatory regime will be published in the fall of 2002.

Other International Activities

Due to the recent dramatic increase in international trade, the Bureau has become increasingly involved in investigating international merger transactions. The Bureau cooperated with foreign counterparts on a number of cases in 2001-2002, sharing information through waivers and meeting jointly with parties, as well as holding unofficial discussions with colleagues from a variety of international agencies on a wide range of topics.

International Conferences

On June 28 and 29, 2001, Bureau staff attended a meeting of the National Association of Consumer Affairs Administrators to accept, along with members of the Toronto Strategic Partnership, the Association's Agency Award for their work dealing with deceptive telemarketing. The Association is a forum for addressing common issues relating to consumer protection.

From August 18 to 22, 2001, Bureau staff attended the North American Consumer Protection Investigators meeting in Baltimore. The conference dealt with enforcement in the area of consumer fraud.

On August 29, 2001, Bureau staff gave a presentation on deceptive telemarketing and its crossborder impact at the International Association of Financial Crime Investigators conference in Milwaukee.

On September 28, 2001, Bureau staff met with members of the private sector, the volunteer sector, law enforcement agencies and the Canadian and U.S. governments at the Deceptive Telemarketing Forum in Toronto to discuss ongoing efforts to expand the work of the Forum.

On October 26, 2001, Bureau staff participated in a panel presentation at a workshop on pet food labelling and regulation, held to compare the Association of American Feed Control Officials' regulations with regulations from other countries.

In November 2001, Bureau staff gave a presentation at a conference sponsored by the American Bar Association in Monterey, Mexico. This forum gave Mexican business people and lawyers the opportunity to hear the views of Canadian, American and Mexican competition authorities on various enforcement approaches to vertical restraints (agreements between suppliers and distributors that constrain their ability to acquire and market goods and services).

On November 8, 2001, a member of the Bureau made a presentation at a workshop on office supply fraud, hosted by the Federal Trade Commission in Washington, D.C. Members of the Bureau and the Department of Justice Canada attended the workshop at which participants discussed the deceptive telemarketing provisions of the Competition Act and law enforcement partnerships between Canada and the United States, among other topics.

In November 2001, in an effort to promote and enhance multilateral efforts to combat cartels, the Competition Bureau hosted the third International Cartel Conference, in Ottawa. This conference brought together more than 100 cartel experts from competition authorities in 27 countries and provided a forum for sharing expertise on investigating and prosecuting international cartels. The agenda included discussions about information sharing, and immunity policy and other investigative tools.

On March 18 and 19, 2002, Bureau representatives attended a meeting of the International Marketing Supervision Network (IMSN) in Montreux, Switzerland, to discuss the results of the IMSN "Best Practices" questionnaire and case studies on crossborder enforcement activities, among other topics.

Bureau staff also attended a wide variety of meetings, including the following, to discuss cooperation in the area of fair business practices:

the semi-annual conference of the IMSN in New York on April 24, 2001, which featured the launch of a Web site allowing consumers to file complaints on the Internet about e-commerce transactions with foreign companies and to obtain information and get practical advice on making safe on-line purchases
a meeting with the Bureau's U.S. counterparts in the Federal Trade Commission in February 2002 to discuss crossborder cooperation
a meeting in Paris with the Organisation for Economic Co-operation and Development's Consumer Policy Committee in March 2002 to discuss crossborder remedies and other issues
a teleconference in March 2002 with the Federal Trade Commission and Latin American consumer protection experts to discuss practical enforcement issues.