The Competition Bureau

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.

Criminal Offences

Price fixing: When competitors agree on the prices that they will charge their customers.

Bid-rigging: When, in response to a call or request for bids or tenders, one or more bidders agree not to submit a bid, or two or more bidders agree to submit bids that have been prearranged among themselves.

False or misleading representations: When materially false or misleading representations are made knowingly or recklessly to the public.

Deceptive telemarketing: When false or misleading representations to promote a product or business interest are made through interactive telephone calls.

Deceptive notice of winning a prize: When a notice, sent by any means, gives a recipient the impression of winning a prize and requires the recipient to incur a cost to obtain the prize.

Reviewable Matters

Abuse of dominant position: When a dominant firm engages in anti-competitive practices that substantially lessen competition in a market, or are likely to do so.

Exclusive Dealing, Tied Selling and Market Restrictions: (1) When a supplier requires or induces a customer to deal only, or mostly, in certain products; (2) requires or induces a customer to buy a second product as a condition of supplying a particular product; (3) requires a customer to sell specified products in a defined market.

Refusal to deal: When someone is substantially affected in his or her business, or is unable to carry on business, because of the inability to obtain adequate supplies of a product on usual trade terms.

Mergers: When all or part of one business is acquired by another. The Bureau has the authority to review any merger, regardless of its size. However, the Bureau must be notified in advance of proposed transactions when the value of the assets or the target firm exceeds $50 million or the value of the amalgamated company exceeds $70 million, and when the combined dollar value of the parties and their respective affiliates exceeds $400 million.

False or misleading representations: When false or misleading representations are made to the public.

Deceptive marketing practices: When a product is advertised at a bargain price and is not supplied in reasonable quantities; when a product is supplied at a price above the advertised price; when retailers make "regular price" claims without selling a substantial volume of the product, or offering the product, at that price or a higher price in good faith for a substantial period of time; or when a contest, lottery, or game of chance or skill is conducted without making adequate and fair disclosure of facts that affect the chances of winning.

What Is the Consumer Packaging and Labelling Act?

The Consumer Packaging and Labelling Act requires that prepackaged consumer products bear accurate and meaningful labelling information to help consumers make informed purchasing decisions. The Act prohibits false or misleading representations and sets out specifications for mandatory label information such as the product's name, net quantity and dealer identity.

What Is the Textile Labelling Act?

The Textile Labelling Act requires that consumer textile articles bear accurate and meaningful labelling information to help consumers make informed purchasing decisions. The Act prohibits false or misleading representations and sets out specifications for mandatory label information such as the generic name of each fibre present and the dealer's full name and postal address or a CA identification number.

What Is the Precious Metals Marking Act?

The Precious Metals Marking Act provides for the uniform description and quality marking of articles made with gold, silver, platinum or palladium to help consumers make informed purchasing decisions. The Act prohibits markings that do not truly and correctly indicate precious metal content.

How Do I File a Complaint?

If you believe any of the laws under the Bureau's jurisdiction have been breached 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.

How does the Bureau deal with complaints?

If it is determined that a complaint warrants further investigation, Bureau officers have a number of tools available to resolve competition issues. These tools are outlined in the Bureau's Conformity Continuum and include:

• public education, written opinions, information contacts, voluntary codes of conduct, written undertakings and prohibition orders;
• the legal authority with court authorization to search for and seize documents and other forms of evidence, to take sworn oral evidence and to demand the production of documents and records;
• the ability to refer criminal matters to the Attorney General of Canada, who then decides whether to prosecute before the courts;
• the power to bring civil matters before the Competition Tribunal or the courts depending on the issue;
• the authority to make presentations and intervene on matters of competition policy before federal and provincial boards, tribunals and commissions such as the Canadian Radio-television and Telecommunications Commission and the National Transportation Agency.

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 breaches to any of the laws under the Bureau's jurisdiction, that person may be asked to testify in court or before the Competition Tribunal.

Written opinions

The Competition Bureau facilitates compliance with the law by providing various types of written opinions for a fee. Company officials, lawyers and others are encouraged to request an opinion on whether the implementation of a proposed business plan or practice would raise an issue under the Competition Act. These written opinions are binding on the Commissioner of Competition unless the material facts change. A written opinion will be based on information provided by the requestor and will take into account previous case law, prior opinions and the stated policies of the Bureau.

How is the Bureau structured?

• The Civil Matters Branch reviews complaints alleging anti-competitive behaviour, such as abuse of dominant position, and restraints imposed by suppliers on customers, such as refusal to supply, exclusive dealing and tied selling. The Branch is also responsible for the Bureau's interventions before federal and provincial regulatory boards and tribunals.
• The Communications Branch ensures that Canadian consumers, businesses, other government agencies, and the international community understand and appreciate the Bureau's crucial contribution to competition in the marketplace and the growth of the Canadian economy.
• The Competition Policy Branch encompasses the International Affairs, Economic Policy and Enforcement, and Legislative Affairs divisions. The Branch advances the Bureau's interests in international cooperation, negotiations and policy development. It provides economic advice and expertise, as well as enforcement support, to the Bureau and it ensures that the laws under its jurisdiction remain relevant.
• The Compliance and Operations Branch develops the Bureau's compliance program, enforcement policy, training and client services. It also manages the Information Centre, planning, resource management, administration and informatics activities.
• The Criminal Matters Branch investigates allegations of criminal anti-competitive behaviour. These include conspiracies (such as price-fixing) that have an undue impact on competition, bid-rigging, price discrimination, predatory pricing and price maintenance.
• The Fair Business Practices Branch administers and enforces legislation pertaining to misleading representations, deceptive marketing practices, and the adequacy and accuracy of information provided to consumers in the labelling, packaging and marking of certain consumer goods.
• The Mergers Branch reviews merger transactions in order to assess whether there is likely to be a substantial lessening or prevention of competition resulting from a merger.

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: National Capital Region: TDD (for hearing impaired): Fax: E-mail: Web site:	1 800 348-5358 (819) 997-4282 1 800 642-3844 (819) 997-0324 compbureau@cb-bc.gc.ca 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. No. RG52-29/4-2003
ISBN 0-662-67712-9