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Marketing practices – Mandatory requirements
In addition to prohibiting certain practices, the Competition Act requires specific disclosures or sets out requirements while making certain representations or engaging in specific practices. Telemarketing, notices of winning a prize, multi-level marketing, performance representations and promotional contests are subject to specific disclosure or mandatory requirements.
The Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act prohibit false or misleading representations in specific sectors (prepackaged consumer products (non-food); textiles and apparel; and precious metal articles). In addition, this legislation prescribes basic, standardized labelling information, such as bilingual product descriptions, metric measurement declarations and dealer identity, which allows consumers to make informed choices.
- Telemarketing
- When interactive telephone communications are used to promote a product or business interest, section 52.1 of the Competition Act requires telemarketers to disclose certain information to each called person or business at appropriate times during each telephone call.
- Notices of winning a prize
- Section 53 of the Competition Act, prohibits the sending of a notice that gives the recipient the general impression he or she has won a prize or other benefit and asks or gives the option to pay money or incur a cost in order to obtain the prize or benefit. No offence would arise if the recipient actually receives the prize or benefit and the person who sent the notice, among other things, provided fair and adequate disclosure of certain information.
- Multi-level Marketing
- When making representations relating to compensation or earnings under a multi-level marketing plan, section 55 of the Competition Act requires they include the amount of compensation actually or likely to be received by a typical participant of the plan.
- Performance representations
- When making representations to the public about the performance, efficacy or length of life of a product, paragraph 74.01(1)(b) of the Competition Act requires that these representations be based on adequate and proper tests.
- Promotional contests
- When conducting contests, section 74.06 of the Competition Act, requires adequate and fair disclosure of the number and approximate value of the prizes, of the area or areas to which they relate and of any fact within the knowledge of the advertiser that affects materially the chances of winning.
- Mandatory label information on prepackaged consumer products (non-food)
- The Consumer Packaging and Labelling Act requires that prepackaged consumer products bear accurate and meaningful labelling information to help consumers make informed purchasing decisions.
- Mandatory label information on consumer textile articles
- The Textile Labelling Act requires that consumer textile articles bear accurate and meaningful labelling information to help consumers make informed purchasing decisions.
- Description and quality marking of precious metals articles
- The Precious Metals Marking Act provides for the uniform description and quality marking of precious metals articles (articles made with gold, silver, platinum or palladium) to help consumers make informed purchasing decisions.
