A written opinion was issued to a company proposing to sell an assortment of beverage products containing vitamins and plant-sourced minerals to the Canadian market. Under the plan, participants will earn compensation by purchasing products at wholesale cost and re-selling them to non-participants.
The Bureau identified an aspect of the company's buy-back policy in which participants were required to terminate their agreement with the company upon the return of any products or sales aids. It was determined that such a requirement was commercially unreasonable under s. 55.1(1)(d) of the Competition Act (Act). This issue was brought to the applicant and subsequently, the termination requirement was removed from the company's plan.
As a result, 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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