Competition Bureau Publishes Final Bulletin on Multi-level Marketing Plans and Schemes of Pyramid Selling

Ottawa, April 29, 2009 — The Competition Bureau today published its final Bulletin on Multi-level Marketing Plans and Schemes of Pyramid Selling. The purpose of this Bulletin is to provide guidance on the Competition Bureau's policies and procedures relating to the administration of the multi-level marketing and pyramid selling provisions of the Competition Act (the “Act”).

Multi-level marketing, when it operates within the limits set by the Act, is a legal commercial activity. In contrast, a scheme of pyramid selling, as defined by the Act, is illegal.

The Bulletin describes the differences between a legitimate multi-level marketing plan and an unlawful scheme of pyramid selling, as outlined in sections 55 and 55.1 of the Act, as well as the general principles and policies applied by the Bureau with respect to the enforcement of these provisions. This final Bulletin follows extensive public consultations on a draft bulletin.

The Competition Bureau is an independent agency that contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

For media enquiries, please contact:
Phil Norris
Communications Officer
Public Affairs Branch
819-953-8230

For general enquiries, please contact:
Information Centre
Competition Bureau
819-997-4282
Toll free: 1-800-348-5358
TTY (hearing impaired): 1-800-642-3844