Telemarketing is a legitimate and important industry in Canada and worldwide. However, criminal deceptive telemarketing undermines honest and competitive markets and is prohibited under the Competition Act. In recent years, the Bureau has actively pursued businesses engaged in deceptive telemarketing.

Through "Operation Mirage", the Bureau is targeting the continuing problem of fraudulent business directories by adopting a multi-faceted approach that includes:

• enforcement action against companies actively engaged in selling fraudulent business directories;
• education to potentially targeted businesses so they can avoid becoming victims; and
• raising awareness among employees or potential employees of deceptive telemarketers.

Based on confidential information gathered by the Bureau in cooperation with national and international law enforcement agencies, the Bureau has identified a number of Canadian-based companies who are allegedly engaged in criminal deceptive telemarketing by selling phony business directories to businesses in Canada and the United States.

The scheme may take a number of forms, but most involve an attempt to sell a business directory by creating the false impression that the company targeted has already placed an order for the directory. Deceptive telemarketers use this "assumed sale" tactic to make an unsuspecting employee of the targeted company think the product has already been ordered by them or someone else in the organization. Also, time-sensitive price reductions are often offered to pressure businesses to make a purchase on the spot.

The law forbids telemarketers from making any representation that is false or misleading in a material respect. Anyone engaged in telemarketing should consult the Bureau's Web site at www.competitionbureau.gc.ca to learn more about how to avoid contravening the Competition Act.

Under section 52.1 of the Competition Act, it is a criminal offence to engage in telemarketing without disclosing, at the beginning of each call: the name of the company or person the caller is working for, the type of product or business interest he or she is promoting, and the purpose of the call.

Telemarketers are also required to disclose during each call: the price of any product or service being promoted, and any other restrictions or conditions that must be met before the product is delivered.

The Bureau receives complaints directly and through partner agencies. In addition, the Bureau works closely with a number of national and international law enforcement agencies. The Bureau invites all Canadians to contact one of the following agencies if they suspect any wrongdoing. For more information on the Bureau's activities, you can contact:

The Competition Bureau toll-free at 1-800-348-5358, or go to www.competitionbureau.gc.ca.

The Canadian Anti–Fraud Centre (formerly Phonebusters) at 1-888-495-8501, or go to www.antifraudcentre.ca.

The Centre of Operations Linked to Telemarketing Fraud (COLT) at 1-800-771-5401, or go to http://www.rcmp-grc.gc.ca/qc/services/colt/accueil-colt-home-eng.htm.

Businesses should instruct their employees to never make on-the-spot decisions about offers over the telephone. If there is no record of the transaction, businesses should not agree to the sale and should not send any payment. Before paying any invoice, they should check that the product has been ordered and received. Finally, they should never pay for a product that they did not agree to purchase.

Each year. students, recent immigrants and others are hired by a number of companies selling business directories using deceptive telemarketing techniques. Owing to the current economic downturn, anyone looking for a job may be tempted to give telemarketing a try without realizing the possible implications. Any person convicted on indictment under the Competition Act and/or the Criminal Code can face fines at the discretion of the court and can be imprisoned for up to 14 years.

Canadian job seekers should be skeptical if a potential employer does not have its name on the front door or the company name changes frequently. They should also have reservations if there seems to be a high number of dissatisfied customers and if the sales pitch does not clearly state, at the beginning of the call, the purpose of the call and the product or service being sold.

In addition, they should ask themselves if this is a legitimate corporation, if the customer service department exists, and if it receives in-bound calls. Be aware if the initial outbound call is followed by a short second call from the same company with the purpose of obtaining a recording of a "verification" of the customer's agreement to purchase. Also be cautious if there are opportunities for advancement given to those employees who are willing to use more deceptive and aggressive sales tactics. For more information, go to the Bureau's Web site at: www.competitionbureau.gc.ca

Employees who suspect they are involved in a telemarketing scheme should contact the Bureau as soon as they suspect that to be the case. The Bureau has an Immunity Program that is designed to uncover and stop criminal activity prohibited by the Competition Act and to deter others from engaging in similar behaviour. Under the Bureau's immunity program, parties seeking immunity are encouraged to come forward in order to obtain immunity. For more information on this program, consult the Bureau's web site at www.competitionbureau.gc.ca

You may want to request a refund from the deceptive telemarketing company, but if it is an illegal scheme, you will not likely get your money back.

The Competition Bureau encourages all Canadians to report suspected wrongdoing. Contact the Bureau at www.competitionbureau.gc.ca or toll free at 1-800-348-5358.

The Canadian Anti–Fraud Centre (formerly Phonebusters) plays a key role in educating the public about specific fraudulent telemarketing pitches. The call centre also plays a vital role in the collection and dissemination of victim evidence, statistics, documentation and tape recordings that are made available to outside law enforcement agencies. Contact the Canadian Anti–Fraud Centre (formerly Phonebusters) at 1-800-495-8501 or go to www.antifraudcentre.ca.