1995-96

1996-97

1997-98

Number of complaints, examinations, inquiries and advisory opinions

Total complaints/information requests

1,424

2,040

6,939

Examinations (two or more days of review)

83

77

870

Applications for inquiries under section 9

6

10

11

Inquiries in progress at year end

37

45

40

Written advisory opinions

240

170

235

Disposition of inquiries

Inquiries formally discontinued

29

9

29

Matters referred to the Attorney General of Canada

4

0

8

Matters referred where further action is not warranted

1

0

2

Prosecutions or other proceedings commenced

4

1

6

Applications to the Competition Tribunal

4

3

8

-Mergers

1

3

4

-Other reviewable practices

3

0

4

Representatives before regulatory bodies

10

11

14

1995-96

1996-97

1997-98

Number of complaints, examinations and inquiries

Total complaints/information contacts

456

561

503

Examinations commenced (two or more days of review)

28

31

41

Applications for inquiries under section 9

(six resident application to the Director for inquiry)

4

2

3

Inquiries in progress at year end

13

16

5

Written advisory opinions

4

1

0

Disposition of inquiries

Inquiries resolved by alternative case resolution

3

4

4

Applications to the Competition Tribunal

1

0

4

Discontinuances

11

Interventions

CRTC

9

Provincial

3

CITT

2

Policy work

2

1995-96

1996-97

1997-98

Number of complaints, examinations and inquiries

Total complaints/information requests

968

1,479

1,285

Examinations commenced

55

46

39

Application for inquiries under section 9

2

8

4

Inquiries in progress at year end

24

29

20

Disposition of inquiries

Matters referred to the Attorney General of Canada

4

0

3

Matters where charges were laid

4

1

3

Matters where Attorney General declined to proceed or withdrew charges (may include matters referred during previous years)

1

0

1

Matters before the Courts (may include matters referred during previous years)

14

10

8

Disposition of prosecutions (findings of guilt, guilty pleas, acquittals, stay of proceedings, orders of prohibition - may include maters referred during previous years)

8

22

48

Other activities

Examinations resolved by information contacts

16

32

13

Written advisory opinions

14

14

12

Mutual Legal Assistance Treaty (MLAT) requests

3

1

0

Searches

4

0

1

1995-96

1996-97

1997-98

Examinations commenced (two or more days of review; includes notifiable transactions, advance ruling certificates and examinations commenced for other reasons; some examinations commenced may arise from notifications and advance ruling certificate requests in relation to the same transactions)

228

319

393

Notifiable transactions

100

140

195

Advance ruling certificates requests

142

224

284

Examinations concluded

As posing no issue under the Act

204

296

398

With monitoring only

4

2

2

With pre-closing restructuring

0

1

0

With post-closing restructuring/undertakings

0

0

3

With consent orders

0

1

0

Through contested proceedings

0

0

0

Parties abandoned proposed mergers in whole or in part as a result of Director's position

3

0

0

Total examinations concluded (includes advance ruling certificates and advisory opinions issued and matters which have been concluded or withdrawn before the Competition Tribunal)

215

306

403

-advance ruling certificates issued (included in "Total examinations concluded")

121

188

236

-advisory opinions issued (included in "Total examinations concluded")

10

2

4

Examinations ongoing at year end

52

65

55

Total examinations during the year

267

371

458

Applications and Notices of Application before the Tribunal

Concluded or withdrawn

1

1

2

Ongoing

2

2

2

1995-96

1996-97

1997-98

Number of complaints, examinations and inquiries

Total complaints received

6,752

6,277

5,148

Applications for inquiries under section 9

5

2

4

Inquiries commenced

8

18

9

Disposition of inquiries

Completed examinations/inquired

278

383

397

Information contacts (includes only written contacts)

86

246

208

Inquiries formally discontinued

-cases involving undertakings

(discontinued inquiries involving undertakings are reported for the fiscal year in which they were discontinued; accordingly, these may not coincide with the actual number of undertakings received in any given fiscal year)

9

8

2

-other cases

10

17

7

Undertakings received

4

4

2

Matters referred to the Attorney General of Canada

7

3

5

Matters where further action is not warranted

(may include matters referred during previous years)

3

0

1

Prosecutions commenced (may include matters referred during previous years)

7

4

3

Prohibition orders without conviction

1

0

0

Prosecutions concluded

(may include matters referred during previous years)

-convictions

14

8

7

-non-convictions (includes conditional and absolute discharges, withdrawals, stays of proceedings, etc. It should be noted that charges against some of the accused are often withdrawn after other accused in the same case have pleaded guilty.¡ Accordingly, there is some overlap.)

4

2

0

Total Fines

$879,850

$241,500

$573,300

Industry

Section of the Act

Nature of inquiry and conclusion reached

Mail advertisement

52(1)(a),(b) & (c)

Consumer Centre Inc. c.o.b. as Small Business Consumer Centre. MAB 1,2,3,4/97 & 1/98

Handbags and Related leather Goods

52(1)(a)

High Fashion Handbags

MAB 1,2,3,4/97 & 1/98

Other Reasons

Centres de conditionnement physique

52(1)(a)

L'enquête a débuté le 13 juin 1997, suite a une demande déposée par six (6) personnes résidant au Canada qui alléguaient que des indications utilisées lors dune campagne publicitaire donnaient une image inexacte dun réseau de centres de conditionnement physique. Lenquête a démontré que malgré lutilisation erronnée dune expression particulière dans lannonce publicitaire, cette indication ne portait pas sur un point important et que lutilisation dun superlatif dans la même annonce était justifiée. Lenquête a été discontinuée le 3 décembre 1997.

Telecom

52(1)(a)

The inquiry was commenced on October 31, 1996, following receipt of several complaints alleging that the company had made false or misleading oral representation which implied an affiliation with telephone companies. Investigation of this matter determined that while explanations given by the company's representatives regarding its relationship with the local telephone companies may have been confusing to the consumer, they were not false or misleading in a material respect. The inquiry was discontinued on January 20, 1998.

Persian Carpets

52(1)(a)

This inquiry was commenced on May 23, 1996, following receipt of a section 9 application by six Canadian residents. The application alleged that a business was advertising a closing out sale featuring persian carpets, yet the majority of carpets offered for sale were actually brought in from other sources. Investigation into this matter provided insufficient evidence to support the allegation and the inquiry was discontinued on April 28, 1997.

Law Firm Disbursement Tracking Systems

52(1)(a)

This inquiry was commenced on August 18, 1993, following receipt of a six resident application under section 9 of the Act. The application contained over two hundred allegations of misleading misrepresentations, most of which were made orally, by a company promoting law firm disbursement tracking systems for copiers and fax machines. Investigation established that there was insufficient grounds for belief that the representations were being made to the public as most of the representations were made in private law firms. Futhermore, investigation established that there was insufficient grounds for belief that the representations were misleading in a material respect as the purchasing agents for the law firms based their purchase decisions on market research and cost rather than on oral representations. The inquiry was discontinued on May 21, 1997.

Multi-level Marketing/Pyramid Scheme

55 and 55.1

On June 21, 1996, the Bureau commenced an inquiry under sections 55 and 55.1 into the marketing practices of a multi-level marketing company. Investigation of the matter revealed that the company was operating a multi-level marketing system in which earning representations were made without appropriate disclosure of the average income earned by a typical participant in the plan. Furthermore, investigation revealed that a participant was required to pay a monthly fee in order to participate in the plan. The matter was referred to the Attorney General of Canada where it was determined that there was insufficient evidence to prove beyond a reasonable doubt that an offence had occurred. The inquiry was discontinued on October 17, 1997.

Multi-level Marketing/Pyramid Scheme

55 and 55.1

On December 4, 1996, after having been provided with reason to believe that offences had been committed contrary to paragraphs 52 (1)(a), 55 and 55.1 of the Act, the Bureau commenced an inquiry into the marketing practices of a multi-level marketing company. The company was making representations relating to earning claims without adequate disclosure of the average income of a participant; was giving recruitment bonuses; and required participants to make purchases as a condition of participating in the plan. As well, the company used an advisory opinion issued by the Bureau to recruit participants into the plan. On December 13, 1996, the Quebec Securities Commission issued an injunction to cease operations against the company. Subsequently, the Bureau's investigation focused on the company's senior officials but there was insufficient evidence to proceed against them. The inquiry was discontinued on February 6, 1998.

Consumer Electronic Products

52(1)(a)

This inquiry commenced on May 7, 1996, following receipt of a section 9 application by six Canadian residents alleging that an electronics products company did not honour its lowest price guarantee. Investigation into this matter failed to provide sufficient evidence that the lowest price guarantee policy was being deliberately ignored or that the company was negligent in its application of the policy. The inquiry was discontinued on May 1, 1997.

Services de laboratoire d'essais

47

Cette enquête a été entreprise le 2 août 1996 à partir de renseignements selon lesquels six (6) laboratoires d'essais de la région de Québec de concert avec l'Association canadienne des laboratoires d'essais (ci-dessous ACLE) avaient enfreint la disposition visant le truquage des offres.

Au terme d'une série de rencontres entre le personnel du Bureau et les laboratoires visés, ceux-ci se sont engagés par écrit à respecter la Loi. L'ACLE et ses dirigeants ont également été rencontrés et cette dernière s'est engagée à modifier son livret de taux suggérés afin de s'assurer de la conformité et le respect de la Loi.

Considérant les engagements écrits, la faible incidence économique et qu'il s'agissait d'un événement isolé, l'enquête a été discontinuée le 15 avril 1997.

Dry Cleaning Services

45

On July 31, 1996, the Director commenced an inquiry into the business conduct of five city of Sudbury dry-cleaning establishments alleged to have contravened section 45, the conspiracy provision of the Act, by agreeing not to compete with each other in the sale and supply of wholesale dry-cleaning services to a new market entrant. The inquiry established, however, that the alleged agreement was of very short duration, did not achieve its intent and, therefore, had no significant economic impact. In view of these circumstances and the fact that the parties to the alleged agreement were operators of small businesses, this matter was resolved by way of an ACR.

As required by the terms of the ACR, each of the said parties, while not acknowledging participation in the alleged agreement, made representations to the Director in writing confirming the correctness of the Bureau's understanding of the relevant facts, as being indicative of activities proscribed by section 45 of the Act, and provided an undertaking to take all steps necessary to ensure non-participation in any business activities proscribed by the law.

Septic Tanks

45

On July 31, 1996, the Director commenced an inquiry into the business conduct of four septic tank cleaning firms alleged to have contravened section 45, the conspiracy provision of the Act, by agreeing not to compete with each other in the sale and supply of septic tank cleaning services in terms of price. Given that the parties to the alleged agreement were operators of small businesses and that the economic impact of the case as well as the demonstrable harm to consumers were not significant, this matter was resolved by way of an ACR.

As required by the terms of the ACR, each of the said parties, made representations in writing confirming the correctness of the Bureau's understanding of the relevant facts as being indicative of activities proscribed by section 45 of the Act and provided an undertaking to take all steps necessary to ensure their non-participation in any business activities proscribed by the law. In addition, each party agreed to publish and did publish a corrective notice, in the Pembroke Weekend News, advising users of septic tank cleaning services that, further to the Director's concern in relation to their business conduct, they were thereby informing the public that they are competitors of each other and that the price charged by each company would be, in the future, established independently, based on competitive conditions in the market for septic cleaning services.

Taxis

45(1)(c)

On March 17, 1997, the Director commenced an inquiry into the business conduct of two Edmonton taxi companies and the Edmonton Regional Airports Authority ("the Authority"). The two taxi companies were alleged to have contravened section 45, the conspiracy provision of the Competition Act, by agreeing to share the Airport taxi stand market and by agreeing on the fares to be charged for trips from the Airport taxi stand to the City of Edmonton. The agreement on pricing was subsequently formalized in a contract entered into by the two taxi companies with the Authority, for the exclusive right to service the Airport taxi stand. The inquiry revealed that Laidlaw and the Co-op entered into the alleged agreement in the belief that the Authority was encouraging joint proposals from taxi companies for the service of the Airport taxi stand. In addition, the inquiry established that the Authority did not intend to violate the Act in entering into a contract with Laidlaw and the Co- op, but merely sought to obtain an advantageous fare rate for the traveling public. In view of these circumstances, this matter was resolved by way of an ACR.

As required by the terms of the ACR, each of the said parties, while not acknowledging participation in the alleged agreement, made representations to the Deputy Director, Criminal Matters, in writing confirming the correctness of the Bureau's understanding of the relevant facts, as being indicative of activities proscribed by section 45 of the Act, and provided an undertaking to take all steps necessary to ensure non-participation in any business activities proscribed by the law. In addition, each of the said parties provided an undertaking to amend the contract by including a provision indicating that the fares identified in the contract are maximum rates only and that both Laidlaw and the Co-op are free to charge lower rates.

Waste Disposal

45(1)(c)

This inquiry commenced on February 1, 1996. It relates to an alleged agreement or arrangement between two waste services to share commercial and industrial waste removal markets in the Province of Saskatchewan between 1989 and 1994 contrary to subsection 45(1)(c) of the Competition Act.

Searches and interviews under oath were conducted during the course of the inquiry, however, evidence obtained was insufficient to establish an offence in contravention of the conspiracy provisions of the Act, accordingly the inquiry was discontinued on March 12, 1998.

Abattoirs de porc

45

L'examen de cette affaire a débuté le 24 mai 1996 à la suite dune demande de la part de neuf résidents canadiens producteurs de porcs au Québec alléguant des pratiques commerciales illégales, interdites par larticle 45 de la Loi.

Suite à une décision de la cour d'appel du Québec qui conclut que les agissements des parties visées dans cette affaire sont soustraits à lapplication de la Loi sur la concurrence la présente enquête fut discontinuer le 16 octobre 1997.

Vente et installation de gouttières

45(1)(c), 50(1)(c) et 61(1)a)

L'enquête a débuté le 18 février 1997 suite à une demande de la part de six (6) personnes résidant au Canada présentée en conformité avec l'alinéa 9(1)c) de la Loi.

Les requérants alléguaient quun concurrent de la région de la capitale nationale, par des agissements anticoncurrentiels, enfreignait les dispositions 45(1)(c) et 50(1)(c) de la Loi.

L'enquête qui a suivi na pas permis de conclure que le Directeur avait des motifs raisonnables de croire qu'une des dispositions de la Loi avaient été enfreintes. Lenquête a donc été discontinuée le 17 octobre 1997.