Competition Bureau Investigation Leads to Guilty Plea for Deceptive Telemarketing Activities

OTTAWA, December 20, 2006 — As a result of a Competition Bureau investigation, Simon Gouin, top executive at 9089-9816 Québec Inc., operating under the name Centre d'expédition direct (CED), pleaded guilty for deceptive marketing practices in the promotion of supplies used in bank machines.

Following presentations by the federal prosecutor for the Office of the Director of Public Prosecutions and counsel for the accused, the court imposed a $75,000 fine against Simon Gouin. In addition, Mr. Gouin and Centre d'expédition direct will be subject to a prohibition order for a period of 10 years, according to section 34 of the Competition Act .

Between August 2000 and June 2004, Simon Gouin and CED telemarketers made false and misleading representations by leading their victims to believe that:

• CED was their regular supplier for the bank machine product;
• CED was offering them preferential prices because a price increase was imminent;
• the purpose of the call was to check the victims' contact information when it was really to close a sale; and
• they had previously ordered the products offered for sale by CED.

Mr. Gouin and CED, as well as all present and future employees, will be subject to a prohibition order forbidding them from engaging in deceptive telemarketing for a period of 10 years. In addition, for a period of three years, they must disclose to the Commissioner beforehand and in writing any representations that they intend to make to the public to promote the supply of their products.

"Fraudulent activities which target Canadian businesses and consumers are of great concern to the Competition Bureau,” stated Raymond Pierce, Deputy Commissioner. "We will continue to actively prosecute these con men so that Canadians can continue to have confidence in the market place.”

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The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

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