Health beverage products
A company planning the direct-selling of a beverage sought an advisory opinion on whether its proposed multi-level marketing (MLM) plan would raise concerns under the Competition Act (Act). The company's product representations included health claims that were not supported by adequate and proper tests and may be false or misleading. These issues were resolved by the company.
The Bureau is obligated to ensure that operators of multi-level marketing plans who request an opinion are in compliance with the Act. The Bureau developed a policy concerning the issuance of opinions in those circumstances where a representation about the performance or efficacy of a product appears to raise a serious issue under the Act.
In this matter, the Bureau issued an opinion in July 2010, which revealed no issues under sections 55 or 55.1 of the Act.
Date: July 2010
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