Work-at-home opportunities

What Is the Competition Bureau?

The Competition Bureau is an independent law enforcement agency responsible for the administration and enforcement of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. Its role is to promote and maintain fair competition so that Canadians can benefit from competitive prices, product choice and quality services. Headed by the Commissioner of Competition, the organization investigates anti-competitive practices and promotes compliance with the laws under its jurisdiction.

What Is the Competition Act?

The Competition Act is a federal law governing most business conduct in Canada. It contains both criminal and civil provisions aimed at preventing anti-competitive practices in the marketplace.

Work-at-Home Opportunities

For many Canadians, the possibility of making easy money from the comfort of their own home is a tough one to pass up. Whether the job involves assembling jewellery, clipping newspaper advertisements, stuffing envelopes or processing worksheets, work-at-home opportunities can seem like an ideal solution for people looking for work or a chance to make some extra cash.

But beware! These jobs are not always everything they are made out to be. In fact, while many work-at-home opportunities are legitimate, some can actually cost you more than you will make.

The truth is, some work-at-home opportunities in the marketplace are designed simply to make profits by luring potential workers. These fraudulent schemes often require you to invest money before you even begin to work. Some sell you useless starter kits and sales guides, while others make you buy products and supplies up front. What's more, these work-at-home opportunities can require much more of your time than you ever imagined. In the end, often what once seemed too good to be true turns out to be just that.

What Does the Law Say?

The Competition Act contains provisions addressing false or misleading representations and deceptive marketing practices in promoting the supply or use of a product or any business interest. All representations, in any form whatever, that are false or misleading in a material respect are subject to the Act. If a representation could influence a consumer to buy or use the product or service advertised, it is material. To determine whether a representation is false or misleading, the courts consider the general impression it conveys, as well as its literal meaning.

Work-at-home opportunities often take the form of multi-level marketing plans and schemes of pyramid selling. The Competition Act explains the differences between the two systems and sets out the responsibilities for operators and participants in these types of plans. Multi-level marketing, when it operates within the limits set by the Competition Act, is a legal business activity, while a scheme of pyramid selling is illegal as defined by the law.

Misleading representations and deceptive marketing practices can have serious economic consequences, especially when directed toward large audiences or when they take place over a long period of time. They can affect both business competitors who are engaging in honest promotional efforts, and consumers.

For more information on false or misleading representations, multi-level marketing plans or schemes of pyramid selling, please visit www.cb-bc.gc.ca or contact the Competition Bureau through any of the methods listed at the end of this pamphlet.

Recognize the Warning Signs

To avoid wasting your time and your money, be watchful for the following red flags which may signify that a work-at-home opportunity is fraudulent:

• advertisements that include exaggerated claims about the amount of money you can earn;
• requirements for you to invest money up front;
• claims that "no experience" is necessary; and
• difficulties contacting the business behind the opportunity.

Do your homework before working from home!

• Contact the business to find out all the details about the job's requirements.
• Check whether your earnings will be based on salary or commission.
• Find out who will pay you.
• Determine all costs involved, such as supplies, marketing, long-distance bills, membership fees, etc.
• Search for background information about the business.

How Do I File a Complaint?

If you believe that someone has in some way contravened any of the legislation enforced and administered by the Bureau and you want to complain, you can telephone, fax, e-mail or write the Bureau at the numbers listed at the end of this publication.

The Bureau conducts its investigations in private and keeps confidential the identity of the source and the information provided. However, if someone has important evidence about a contravention of any of the acts the Bureau administers, that person may be asked to testify in court.

The Bureau produces CD-ROMS and publications on various aspects of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. To find out more about our CD-ROMs and publications, contact the Information Centre: Information Centre Competition Bureau 50 Victoria Street Gatineau QC K1A 0C9 Toll-free: 1 800 348-5358 National Capital Region: (819) 997-4282 TDD (for hearing impaired): 1 800 642-3844 Fax: (819) 997-0324 E-mail: compbureau@cb-bc.gc.ca Web site: www.cb-bc.gc.ca This publication is only a guide. It provides basic information about the Competition Bureau and the acts it administers. For further information, you should refer to the full text of the acts or contact the Competition Bureau at one of the numbers listed above.

Cat. Iu54-3/2005
ISBN 0-662-68912-7