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Federal Court of Appeal Rules that Career Management Firm Misled Vulnerable Job Seekers

OTTAWA, October 16, 2009 — The Federal Court of Appeal has granted the Competition Bureau’s appeal, finding that a Vancouver-based career management company misled the public, and violated the Competition Act, in order to sell its job placement services.

Past court decisions have ruled that companies contravene the Competition Act when marketing their products if they make misleading statements to a group of consumers, all at one time. The appeal court’s decision confirms the Bureau’s position that the law also prohibits companies from making misleading statements to a number of individual consumers, one at a time.

The court found that Premier Career Management Group (PCMG) and its president, Minto Roy, convinced clients to pay $5,000 to $7,000 each, by misleading them to believe that the company would:

use its extensive network of links to senior-level executives to provide contacts and arrange job interviews; and
find jobs quickly for clients, typically within 90 days, with salary and benefits equal to or better than previous jobs.

This ruling overturns a July 2008 decision of the Competition Tribunal that denied the Bureau’s application to stop PCMG’s misleading conduct, which had targeted vulnerable job seekers. The Federal Court of Appeal further directs the Tribunal to determine an appropriate remedy against PCMG and Mr. Roy.

The Competition Act was recently amended to further clarify how businesses, in marketing their products, must provide information to the public that is not false or misleading to promote competitive prices and product choices for all consumers.

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