Reaching an agreement with competitors

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.

What Is Conspiracy?

When business competitors agree:

• on the prices that they will charge their customers;
• not to compete for certain customers;
• not to compete in a particular product or geographic market; or
• to prevent or impede other businesses from competing in a market;

they may be committing a criminal offence known as conspiracy, under the Competition Act.

I Have Never Reached an Agreement with My Competitors, So How Does Conspiracy Affect Me and My Business?

A conspiracy scheme prevents you from reaping the benefits of a competitive marketplace, benefits that include lower prices and product choices. If your suppliers are conspiring, you, as the victim of a conspiracy scheme, are not as profitable as you could be.

I Have Been Involved in a Conspiracy with My Competitors. What Can I Do?

If you bring information to the Bureau at an early stage, the Attorney General, upon the recommendation of the Bureau, may grant you and your company an immunity from future prosecution. Further information on our Immunity Program may be found at www.cb-bc.gc.ca.

What Are the Possible Penalties?

• Penalties for conspiracy include fines of up to $10 million, imprisonment for up to five years, or both.
• Courts can also impose orders to prevent the parties to a conspiracy from continuing or repeating the offence.
• Customers who have lost money as a result of the conspiracy may sue the convicted parties for damages.

Remember that individuals as well as companies can be charged under the conspiracy provisions of the Competition Act.

What Should I Do If I Suspect Conspiracy?

If you suspect or have information that competitors or suppliers are discussing and agreeing on the prices that they will charge customers, or on other aspects of business that may lessen or prevent competition, contact the Competition Bureau.

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 an offence under the Act, that person may be asked to testify in court.

How Does the Bureau Conduct an Investigation?

Bureau staff investigate a matter through confidential interviews and a review of records, documents and other sources of information.

If it appears that the law has been broken, the Bureau can apply to the courts to obtain search warrants or use other compulsory means to continue the investigation.

Once enough evidence has been obtained, the Bureau refers the matter to the Attorney General of Canada. The Attorney General then decides whether to prosecute in the criminal courts.

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. RG52-29/9-2003
ISBN 0-662-67736-6