A company that engages in the direct–selling of internet marketing campaigns sought an advisory opinion in July 2009 on whether it's proposed multi–level marketing plan would raise concerns under the Competition Act (the "Act").
The Competition Bureau (the "Bureau") refused to provide an opinion on the basis that the proposed plan did not have a Canadian operator. As outlined in the Bureau's information bulletin titled "multi–level Marketing Plans and Schemes of Pyramid Selling" it is the Commissioner's practice not to issue written opinions under sections 55 and 55.1 of the Act when an MLM plan does not have a legal Canadian identity.
As a result, the Bureau issued a refusal to provide a written opinion under sections 55 and 55.1 of the Act.
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