Health products containing vitamins and herbal extracts
The Competition Bureau received a request for a written opinion pursuant to s. 124.1 of the Competition Act (Act) from the operator of a proposed multi-level marketing plan for the supply of health products containing vitamins and herbal extracts. The proposed plan is a form of multi-level marketing where participants sign-up as distributors and earn compensation through sales to personal sales volume, group sales volume and points earned.
The Bureau expressed concerns regarding compensation for recruitment and representations related to health claims. The Bureau determined that the plan focused on the supply of product to non-participants rather than on recruiting prospective participants in the plan. Furthermore, the Bureau's concerns related to representations regarding health claims were addressed by the applicant. In June 2010, a written opinion was issued stating that the proposed plan raised no issues under sections 55 or 55.1 of the Act.
Date: June 2010
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