Annual Report of the Commissioner of Competition for the year ending March 31, 1999

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Informing Canadians

The Competition Bureau works on the premise that the best defence against anti-competitive practices is a proactive strategy of education.

Bureau staff routinely monitor the marketplace, and regularly visit with business, industry and stakeholders. They also rely on Canadians to come forward when they suspect anti-competitive practices.

In 1998-99, the Bureau's Information Centre received 46 000 enquiries. The Bureau hears from Canadians in several ways:

• through E-mail, telephone, fax or letter;
• through the Internet, using the Bureau's enquiry/complaint form;
• through Members of Parliament who forward complaints from their constituents; and
• through direct contact, for example, when members of the business community meet with Bureau staff.

All enquiries received by the Bureau are treated as confidential, and reports of suspected illegal practices are passed on to the appropriate branch.

A representative selection of cases in 1998-99 for which the Bureau was able to resolve problems through voluntary compliance are set out in Table 1.

To make a general enquiry or file a complaint regarding a deceptive business practice, call the Competition Bureau at:
Tel.: 819-997-4282
Toll-free: 1-800-348-5358

Or use the on-line enquiry/complaint form.

Table 1

Informing Canadians: Highlights 1998-99

Idustry Sector and Issue	Competition Bureau Intervention	Outcome and Potential Benefits for Canadians
Monitoring
Major national retailers - ongoing monitoring In response to complaints from Canadians and the Consumers' Association of Canada, the Bureau checked a total of 107 stores representing 14 national retailers across the country, that were using computerized bar code scanners to read product prices.	Results of the price accuracy check were shared with the head offices of the 14 retailers. They agreed to improve their scanning systems. The Retail Council of Canada (the main contact for the Price Accuracy Committee) was also advised. Preliminary results of the first in a series of follow-up checks show an increase in price accuracy from a year ago.	Agreement was reached with the Retail Council of Canada, the Consumers' Association of Canada and Option Consommateurs to promote price accuracy information through the Bureau's Be a Smart Shopper: Make Sure You Pay the Right Price pamphlet and via electronic links to the Bureau's Web site. The Retail Council and the Price Accuracy Committee also published a best practices guide.
Public Education Initiatives
The jewellery industry Each year the Bureau receives a number of complaints about misleading advertising and deceptive marketing practices related to the jewellery industry.	On Guard for Thee, a bulletin explaining the responsibilities of jewellery dealers under the Competition Act and the Precious Metals Marking Act and Regulations, is posted on the Bureau's Web site, used at trade shows and distributed during client visits.	Ongoing public education initiatives such as this one increase awareness within the jewellery industry of the dos and don'ts under the Competition Act.
The computer software industry Because of the proliferation of computers in Canadian homes and offices, the Bureau began monitoring manufacturers' software claims in 1996. The results of a 1997-98 study showed that, of the 2000 claims made on 140 pieces of software acquired by the Bureau, slightly more than 8 percent were found to be misleading.	The Bureau published Be a Smart Shopper: Know Your Software and Software Claims Survey - Analysis Report in 1998-99. These materials were widely distributed during a national public education campaign, and are available on the Bureau's Web site.	Through active media relations, the Bureau has increased public awareness about claims made by the computer software industry. The results of the Bureau's Software Claims Survey - Analysis Report are shared with software producers, distributors and retailers during routine client visits.

^{Note: For enforcement policy considerations, some names have been withheld.}

Community Outreach

The year saw the Bureau follow through on a series of important community outreach commitments made in 1997-98.

• First, the Bureau held nationwide consultations on The Merger Enforcement Guidelines as Applied to a Bank Merger. Representatives from banks, other financial institutions, the business community, academics, and members of labour and consumer groups were invited to respond to the Bureau's November 1997 submission to the Task Force on the Future of the Canadian Financial Services Sector. More than 600 individuals or institutions were approached for their views. Except where confidentiality was requested, submissions were posted for public view on the Bureau's Web site. The revised guidelines were published in July 1998.
• In 1998, the Bureau requested feedback from those who use its merger review services. Of those who responded, 75 percent said that the service was "excellent," 23 percent felt that the service was "good," and 2 percent - representing just one case - rated it as "poor" (see Table 2). The Bureau will continue to monitor its progress.
• One year after adopting fees and service standards, the Bureau hosted a day-long forum for close to 60 senior members of Canada's competition policy community in February 1999. The feedback received was favourable.

Table 2

Feedback on Merger Review Services, November 1997 to November 1998

Business Line	Number of Responses
	Poor	Fair	Good	Excellent
Merger Review	1	0	6	28
Advisory Opinions	0	0	4	4
Percentage	2%	--	23%	75%

Partnerships

The Bureau continues to be very active in seeking partnerships through which to reach its target audiences, and to work with other agencies dedicated to the goals of law enforcement and maintaining a competitive marketplace.

For instance, the pamphlet "Stop Phone Fraud, It's a Trap!" is a joint effort with a wide variety of partners from the public and private sectors, as well as non-profit groups.

The Bureau's partnerships with the public sector are numerous. For example, the Bureau receives legal advice from, and works in close partnership with, a specialized group of lawyers at the federal Department of Justice. It also works with other federal government departments to incorporate sound policy principles into Canada's trade and economic agenda.

Across Canada, the Bureau maintains regular contact with provincial agencies working on consumer protection, law enforcement and justice issues.

In November 1998, the Bureau participated in the launch of Canshare, a state-of-the-art, Internet-based alert network for law enforcement agencies. This early warning system is designed to increase information sharing on a broad range of consumer protection issues. Such intergovernmental cooperation helps the Bureau track deceptive telemarketing and other kinds of scams, and reduce financial losses for Canadians.

The Internet: A Major Communications Tool

The Internet has become a primary vehicle for informing Canadians, businesses, stakeholders and the media of new developments. In turn, Canadians are increasingly using the Bureau's electronic services to request information and register complaints on-line.

The goal is to ensure round-the-clock service at the click of a mouse button. Current reports, business and consumer alerts, and press releases are available 24 hours a day, 365 days a year.

The most popular of the Bureau's Web pages are those dealing with consumer awareness and labelling, in addition to the Bureau's on-line publications, which address a range of issues, from packaging to precious metals.

However, the Bureau is aware that consultations, the Internet and printed materials cannot meet every need. Individuals may sometimes wish to discuss suspected anti-competitive activities or explore a proposed merger in private. To this end, the Bureau operates on an open door policy, with the Commissioner and individual staff members available to the Bureau's wide range of clients.

Timely delivery of information

The quality of the Bureau's advice and decision making is only as good as its ability to stay on top of current trends and issues. This is why it continues to place a great deal of emphasis on the library and research services offered by its Resource Centre.

The key is not to amass information, but to find the most cost-effective and efficient ways of using the Internet and the sophisticated search tools it offers. The Bureau's goal is to ensure that up-to-the-minute information on antitrust cases is available on every desktop computer.

Except where confidentiality provisions must be respected, the Bureau's collection, which is not duplicated anywhere in the country, can be consulted by the general public.