Competition Bureau Settles Case Involving Auto Body Shops

Ottawa, February 16, 2007 – The Competition Bureau announced today that it has settled a price fixing and price maintenance case involving six auto body repair shops in Fort McMurray, Alberta. The settlement was reached between the Director of Public Prosecutions and Shamrock Maintenance & Hotshot Services Ltd., Pete’s Custom Coachwork, Birchwood Auto Body, Alberta Motor Products Ltd., Noral Motors and Lane’s Auto Shop.

“Conspiring to fix prices and price maintenance are criminal offences with serious consequences,” said Denyse MacKenzie, Senior Deputy Commissioner of Competition. “Criminal cartels cause damage to our economy and can drive up prices for Canadian consumers.”

The settlement will ensure that auto body repair shops comply with the Competition Act and that consumers benefit from competitive labour rates for auto body repair services.

The parties have agreed to a binding court order issued by the Federal Court of Canada under the Competition Act, requiring a change in their conduct regarding the setting of labour rates for auto body repair work. The consent order prohibits the six companies from:

• directly or indirectly, engaging in any communication or exchange of information of any kind with each other relating to pricing of products or services to customers or insurance companies;
• entering into any agreement or arrangement of any kind relating to pricing of products or services to customers or insurance companies with any person engaged in the sale and supply of auto body repair services in Fort McMurray.

The court order prohibits the commission of any acts or things constituting or directed toward an offence under sections 45(1)(c) and 61(1)(a) of the Competition Act. Under these sections, it is a criminal offence to agree with competitors to fix prices or engage in price maintenance activities.

According to the Consent Order, the companies have also agreed to publish a corrective notice outlining key terms of the Order in the local newspaper and to implement a compliance program.

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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For media enquiries, please contact:
Maureen McGrath, Communications Advisor
Communications Branch
Competition Bureau
819-953-8982

For general enquiries, please contact:
Information Centre
Competition Bureau
819-997-4282
1-800-348-5358