A multi–level marketing company supplying jewellery, handbags and fashion accessories sought a written opinion in March 2009, on whether a proposed multi–level marketing plan would raise concerns under the Competition Act.

Representations relating to the compensation of participants in the proposed plan appeared in the company's marketing materials. However, a disclosure of the compensation likely to be received by typical participants in the plan also appeared in the company's marketing materials.

Compensation under the plan appeared to be derived from the sale of product to both participants and non–participants of the plan.

Prospective participants are required to purchase a distributor kit to participate in the proposed plan. However, the distributor kit is supplied to prospective participants at the seller's cost price for the purpose of facilitating sales under the proposed plan.

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

(3103265)