Cosmetic products

A company that engages in the direct–selling of various cosmetic products sought an advisory opinion in July 2009 on whether its proposed multi–level marketing plan would raise concerns under the Competition Act (the "Act").

The company's US affiliate marketed a fuel–saving device. The Bureau expressed concern about the performance claims being made with respect to the fuel–saving device. As a result, the company provided an undertaking to the Bureau that it would not sell any product in Canada associated with fuel saving, increased mileage and/or reduced vehicle emission claims unless it first obtains a written opinion of those claims from the Bureau under section 74.01(b) of the Act. The Bureau proceeded with the written opinion after the undertaking was received.

As a result, the Bureau issued an opinion in November 2009, which revealed no issues under sections 55 or 55.1 of the Act.


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