Video gallery

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If you own or run a business, or hold a position in compliance, legal, marketing or sales, you should be familiar with the deceptive marketing provisions of the Competition ’.

In this short lesson, we will explain the important elements of deceptive marketing. This will help you make sure that the marketing and sales activities of your business comply with the law.

Slide 1: Visual

Get familiar with the law

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Depictions of a business owner, a legal counsel, a compliance expert, a marketer and a salesperson.

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For Canada’s markets to be fair, its businesses must compete honestly. That’s why, when you are promoting your business, products or services, you must not make false or misleading statements about them.

Slide 2: Visual

Don’t mislead consumers

Slide 2: Graphic Description

Depiction of a person with a Pinocchio nose working on a laptop. The screen besides this person says: "Don’t mislead consumers".

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This includes online marketing like web banners, landing pages, text-based hyperlinks, emails, text messages, newsletters, blog posts, online ads and social media content.

Slide 3: Visual

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Slide 3: Graphic Description

Graphic of a person juggling these icons:

• Internet symbol
• email symbol
• hyperlink symbol
• text symbol
• computer screen symbol
• web banner symbol
• Tweet symbol
• video symbol
• dollar symbol
• social media profile symbol
• link symbol
• clipboard symbol
• mobile phone symbol
• books’ symbol and
• gear symbol

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If your marketing content creates a general impression that is false or misleading, it could be considered deceptive marketing. Keep in mind: No one actually needs to be deceived for the general impression to be false or misleading.

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Slide 4: Graphic Description

Graphic depicting the following elements:

• Courthouse
• legal papers
• a lawyer at a podium and
• law books

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Before you make any claims about your business, its products or services, you should ask yourself these important questions in order to assess general impression.

1. Is the meaning in my marketing content partially false, or have more than one meaning, one of which is false?
2. Does my promotional material withhold important information?
3. Do parts of my marketing content, such as the web address or visuals, create a false impression?
4. Taken together, do the representations I’ve made have the potential to create a false or misleading impression?

If you answer yes to any of these questions, then you should review your promotional material.

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Slide 5: Graphic Description

Image of a person thinking about these questions:

1. Partially false? More than one meaning?
2. Withholding important info?
3. Visuals create a false impression?
4. Whole meaning isn’t misleading?

Slide 6: Audio

To avoid giving the wrong impression in your marketing materials, here are a few additional tips:

• Avoid fine-print disclaimers that restrict or contradict the main message. If you use disclaimers, make sure that they only clarify or expand on the main message. Disclaimers will not change the general impression if it is otherwise false or misleading.
• Use clear, easily understood language in your marketing copy. Ask unbiased proofreaders to verify that the message is easy to understand.
• Fully and clearly disclose all related, and important information. Do not hide key features or information from your customers.

Slide 6: Visual

Marketing Tips

Slide 6: Graphic Description

Laptop with these symbols around it:

• email symbol
• time symbol
• credit card symbol
• planner symbol and
• symbol of magnifying glass over content

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Now that we’ve talked about how to assess the general impression of your marketing messages, let’s look at performance or efficacy claims. These types of representations receive special treatment under the law. To make sure that your marketing materials are not deceptive, any claims you make about performance or efficacy must be supported by adequate and proper testing.

Here are some DO’s and DON’T’s:

• DO make sure that your testing has been conducted before the claim is made.
• DO make sure your marketing claims reflect the actual test results.
• DO make sure that the testing on which you are basing your claims was done under controlled circumstances.

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DO’s:

• Green checkmark: DO make sure that your testing has been conducted before the claim is made.
• Green checkmark: DO make sure your marketing claims reflect the actual test results.
• Green checkmark: DO make sure that the testing on which you are basing your claims was done under controlled circumstances.

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• DON’T make broad claims based on testing that is only partially relevant.
• DON’T base your marketing claims on test results that are insignificant or based on mere chance or one-time effect.

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DON’T’s:

• Red X: DON’T make broad claims based on testing that is only partially relevant.
• Red X: DON’T base your marketing claims on test results that are insignificant or based on mere chance or one-time effect.

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It is your responsibility to prove that the marketing claims you make are based on adequate and proper testing. To comply with the law, testing must be done before any marketing claims are made. So, test it before you market it!

Slide 9: Visual

Test it before you market it!

Slide 9: Graphic Description

Scientist performing a test in a lab, in this case by looking into a microscope.

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Let’s turn to influencer marketing. The Competition ’ still applies if you are working with influencers.

"Influencer marketing" is marketing just the same - both parties must remember that they are making marketing claims to consumers.

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Slide 10: Graphic Description

Image of an influencer speaking out of a mobile phone with a bullhorn in order to attract potential followers and customers.

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There is nothing wrong with influencer marketing, as long as the connection between the business and the influencer is clear to the public.

Like marketers, influencers must clearly disclose relevant information related to their marketing claims.

If the influencer receives any benefit from or has a connection to the business, it is important to disclose that to the public.

A "connection" could be getting paid or receiving commissions, free products or services, or discounts, in exchange for promoting a business, product or service. It could also mean a friend or family connection with the business.

Slide 11: Visual

Disclose connections

Slide 11: Graphic Description

Cellphone with people around it holding different signs with the following icons on the signs:

• dollar bill icon
• commissions’ icon
• discounts’ icon
• trip icon
• family connection icon
• free ticket icon and
• connections’ icon

There is one icon per sign.

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When working with influencers, your business shares a responsibility for their promotional messages. You could be liable for false or misleading content. Therefore, you should always review their content carefully.

Slide 12: Visual

Shared Responsibility

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Image of people attracted by a social media profile. This is depicted with a magnet coming out of a cellphone that has a social media profile on it, and with 6 social media users moving towards the magnet.

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Finally, a word about online reviews and testimonials. These must also be authentic experiences and opinions of impartial consumers.

Slide 13: Visual

Authentic reviews

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Image of a cellphone depicting a review with the words "Authentic reviews" written above it.

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Now, let’s turn to the rules around pricing.

The practice of offering attractive headline prices and then adding additional mandatory fees later in the transaction is sometimes referred to as drip pricing.

When you promote a product or service at a certain price, that advertised price must be attainable.

In other words, the price you attach to your product or service in your marketing must be the price that your buyer ultimately pays. Don’t charge mandatory fees at the end of the purchase.

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Hidden mandatory fees

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Clipboard with a checklist on it entitled "Hidden mandatory fees", with the options "yes" or "no" on the checklist.

The answer "no" is checked off.

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Price matters. A sale price, advertised as a savings in relation to a regular or "ordinary selling price" is especially compelling.

When promoting a bargain or a "sale" on your products or services, it’s important that you don’t inflate your "regular" price to create a false bargain.

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Slide 15: Graphic Description

Image of a bullhorn as a symbol for marketing with the words "50%", "Sale" and "New" coming out of it. Symbols of money around the bullhorn to further represent business, sales and marketing.

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To comply with the law, the "sale" price must based on the true regular price. A company must be able to validate the regular price by applying the "volume test" or the "time test."

To pass the volume test, your business must have sold a substantial volume of that particular product or service at the regular price or higher within a reasonable period of time.

To pass the time test, your business must have tried selling your product or service, in good faith, for a substantial period of time at the regular price or a price that is higher than your new "sale" price.

Slide 16: Visual

Volume test

Time test

Slide 16: Graphic Description

A graphic with two images.

The first image is of people in a warehouse moving boxes of product inventory with the words "Volume Test" written underneath.

The second image is one of a person with a bullhorn who represents a marketer next to a clock with the words "Time Test" underneath.

Slide 17: Audio

To avoid making deceptive claims about prices, keep these simple tips in mind

• Don’t use the words "sale" or "special" in your marketing collateral unless a true price reduction has occurred.
• Don’t run a "sale" for a long time or repeat it every week.
• Don’t lure customers with a bargain product that isn’t available and then offer a similar alternative at a higher price. Make sure that you have reasonable quantities of the product advertised at a bargain price before promoting a sale.
• Don’t sell a product above your advertised price.
• If two prices appear on your product or service, charge the lowest price.

Slide 17: Visual

Tips on sales

Slide 17: Graphic Description

Tag for a sale.

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So far, you’ve learned that the Competition Bureau is responsible for addressing deceptive marketing practices. However, it also has responsibility for addressing different kinds of criminal misleading advertising that are similar to fraud.

The consequences of non-compliance with the Competition ’ can be serious, including significant monetary penalties, restitution, prohibition orders and even imprisonment.

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Slide 18: Graphic Description

Image of a businessperson assessing risk.

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One important step that businesses can take to minimize the risk of breaking the law is to put in place a corporate compliance program. Credible and effective measures can be as simple and nimble as your business. Plus, it’s the right thing to do.

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Slide 19: Graphic Description

Image of a businessperson looking at himself proudly in the mirror.

Slide 20: Audio

You have now completed Part 1 of Lesson 1 of our Compliance Bootcamp, and should know how to spot risks in your promotion activities and avoid deceptive marketing.

You can finish the Bootcamp by completing the quiz in Part 2 of this lesson. This quiz will allow you to test the marketing knowledge you have just gained.

Thanks for taking the time to learn how your marketing activities can stay on the right side of the law. Together, we can ensure fair competition in the Canadian market. To learn more, please check out our bonus resources in Part 3 of this lesson.

If you have any questions, please contact us by using our online question form.

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Thanks!

Slide 20: Graphic Description

Person with a bullhorn depicting a marketer. Person at a desk working on marketing copy. Globe with marketing copy on it.

U.S. Senator Amy Klobuchar: Competition & Growth Summit Address

U.S. Senator Amy Klobuchar (State of Minnesota): I want to thank Competition Bureau Canada and Commissioner Matthew Boswell for inviting me to participate in this important summit on competition and growth.

Competition policy is economic policy. To me, reforming antitrust law is about rejuvenating capitalism and building a post-pandemic economy that works for all. Canada is America’s biggest trading partner and is vividly displayed on the banners, which years ago draped the pillars of the Canadian embassy in Washington. We are friends, neighbours, partners, allies.

I remember that well because I may be the only senator who held my swearing-in party, when I got sworn in a second time as senator, at the Canadian embassy. It has also been an honour to serve as chair of the Canada-U.S. Inter-Parliamentary Group which for six decades has helped strengthen economies and protect national security on both sides of our 5500-mile border.

I was also a strong supporter of the United States-Mexico-Canada agreement which is providing much needed stability and economic opportunity to farmers, producers and consumers on both sides of the border. In fact, at a critical moment where maybe... Canada wasn’t at the negotiating table, I worked with some of my colleagues on the Republican side, and your former ambassador actually held a big dinner and we hashed everything out and went back and forth, and I was so glad that the agreement was a USMCA.

My State of Minnesota exports more goods to Canada – 4.7 billion-worth annually --than we sell to our second and third-largest markets combined. Minnesota’s economy is just as interconnected with Canada’s economy as it is with those of our neighbouring states, and much of that economic activity is connected to travel and tourism.

As co-chair of the Senate Travel and Tourism Caucus, I’m looking forward to helping to restore post-pandemic domestic and international travel as quickly as possible, especially in the northwest angle. We want to get that border open; we want to be able to have that exchange; and the employees that go back and forth, the tourism that goes back and forth.

The timing of our recent inter-parliamentary meeting was important because we are finally seeing a light at the end of the tunnel of the pandemic -- or as we say in Duluth on our beautiful shared Great Lake Superior, “we see the lighthouse on the horizon.”

That means we must fully resume confronting the problems of our time. We know what they are: healthcare, education, climate change. But I want to focus on one that not enough people are focusing on, and that is a consolidation and rise of market power we are seeing in our... really our world economy, because it’s not just the U.S. economy; the rising monopoly power is an international problem. A recent International Monetary Fund study found signs of rising market power across the economies of the United States, Canada, and Europe, and the pandemic threatens to make this problem worse by hurting the small and medium-sized businesses that put competitive pressure on large dominant companies.

Those small companies go away; you don’t have the kind of competition you need. During the first few months of the pandemic in 2020, some 22 million U.S. workers lost their jobs. In Canada, more than one million workers lost jobs in March 2020 alone. Between February and April 2020, the number of active business owners in the U.S. plummeted by 3.3 million. The pandemic hit small businesses and start-ups especially hard, forcing thousands to close. In Canada, 58,000 businesses became inactive in 2020.

With fewer smaller businesses; big surprise; we’ve also seen merger filings increase. There are serious concerns that large dominant companies which have the financial resources to weather the pandemic will be in a better position to buy up weakened competitors and become even more dominant. Remember, this was a problem going on before -- many industries, tech, pharma, you name it. The pandemic could threaten to make our monopoly problems even worse.

Both of our countries recognize that this is a problem we can’t ignore. Canada’s government recently proposed increasing the Competition Bureau’s budget by 96 million over the next five years. There’s a common understanding that we need financial resources. You can’t take on the world’s biggest companies and make sure that they are existing in competitive markets without having the resources.

My own interest in fair competition tracks with America’s changing economic landscape. My relatives came to America to work for the industrialists of the Gilded Age. My grandpa worked 1500 feet underground in the iron ore mines of northern Minnesota, not too far from the Canadian border. He never got to graduate from high school, even though he was a good student, but instead he saved money in a coffee can in the basement to send my dad to college many, many years later. My dad, who we lost last month at the age of 93, earned his journalism degree from the University of Minnesota and went on to be a sports reporter and a newspaper columnist, covering, by the way, the Vikings, and in those old days Bud Grant -- someone that some people still remember in Canada. And my mom was a public-school teacher who taught second grade until she was 70 years old.

When I was a young lawyer, I worked for a law firm and represented MCI which at the time was an innovative young telecom company that was being held back by local monopoly carriers. MCI, along with the Republican and Democratic administrations took on AT↦T and ultimately broke up the Ma Bell monopoly, lowering long distance calling prices for consumers across the country, revolutionizing the telecom industry, and launching a highly successful cell phone industry. Many, including a former AT&T president, have suggested that AT&T’s famous break up made the company stronger because it forced it to become more competitive.

As a senator, my work with our nation’s antitrust law started in 2008, a year after I was sworn in, when a pharmacist at Minneapolis Children’s Hospital called our office to explain how the price of a lifesaving drug used to treat premature babies with heart valve defects had suddenly gone up astronomically from $78 per treatment to $1600. After I held Senate hearings, worked with state attorneys general across the country and pushed the Bush Administration to take action, the FTC and state attorneys general filed suit against the pharmaceutical company that owned the drug, for price gouging and violating state and federal antitrust laws.

We did that, but guess what happened? We didn’t win. We didn’t win that case, neither the FTC nor any of the parents of the kids or the hospitals. It was a loss despite that huge increase, because of the issues with the laws that we are seeing really worldwide. The competition problem we face was here before the pandemic. Why is healthcare so expensive? Why are cable rates so high? Why do farmers pay so much more for seeds and fertilizer? Monopolies affect the entire economy -- we see it in everything from cat food to caskets -- a global problem, and Canada is seeing effects in its markets as well. In response to concerns about the market power of big pharma companies, Competition Bureau Canada has joined a multilateral group of global antitrust enforcers from the U.S., the EU, and the UK to develop new approaches for analyzing the competitive effects of pharma mergers. Last year, the Competition Bureau hosted a digital enforcement summit to explore strategies for tackling the troubling competition issues that challenge enforcers in Canada and around the world, and just months after it launched an antitrust investigation into Amazon’s online marketplace.

So, these are issues that affect consumers on both sides of the border and beyond. We all know that consolidation isn’t good for consumers, but it’s also bad for entrepreneurial energy and economic growth. There is evidence that entrepreneurs and small business owners find it nearly impossible to compete in highly concentrated markets. Yes, they can start their companies, but getting bigger is the problem. Widespread monopoly power reduces incentives to innovate and start new businesses that will drive economic growth and job creation in the decades to come.

For a strong recovery, we need vibrant small and medium-sized businesses poised for growth. That means ensuring that they have competitive markets that will enable them to thrive. To achieve that, we need to update and better enforce our antitrust laws. Don’t get me wrong. This isn’t about punishing success or going after companies just because they’re too big; this is about cracking down on the unfettered growth and abuse of market power, fostering competition, and preserving our capitalist system. I worked in the private sector for 15 years. I want to preserve it.

I just want to make sure that it works.

Adam Smith, the father of capitalism, as I noted, repeatedly warned of an overgrown standing army of monopolists. We are obviously a long way from the 18th century time of Adam Smith or even the days of Standard Oil’s monopoly, but the warning that he gave us is as relevant today as it has ever been. What we need now is a renewed antitrust movement grounded in a pro-competitive economic agenda; and in America, all we really need is the political will to get it done. That means coming together to make positive change, and there are signs that this is possible.

With Republican Senator Chuck Grassley, I introduced bipartisan legislation to ensure that antitrust authorities have the resources they need to enforce the laws on the books. Our Merger Filing Fee Modernization Act passed out of the Senate Judiciary Committee last month on a voice vote, and we are working to further advance the bill – actually, I think it’s passing this week. That’s going to give over $100 million to the FTC and the Department of Justice antitrust divisions so they can take on the biggest companies the world has ever known.

We also need to update our antitrust laws. That’s why I’ve introduced the Competition and Antitrust Law Enforcement Reform Act to strengthen enforcement against monopoly power. This bill will reset the baseline for agency funding to enable more effective enforcement. We have a serious problem in that the Department of Justice’s Antitrust Division and the FTC are shadows of what they were in the 1980s even during Ronald Reagan. As Canada has recognized with budget increases, our enforcement agencies shouldn’t have to take on those big companies with duct tape and bandaids. We need to get them the funding they need.

The second thing my bill does is to update the Clayton Antitrust Act’s provisions on mergers and acquisitions to stop harmful consolidation. It changes the legal threshold to prohibit anti-competitive mergers from mergers that may substantially lessen competition; a higher threshold; as interpreted by the courts, to mergers that may create an appreciable risk of materially lessening competition, and it shifts the burden of proof for several categories of mergers, including mergers that significantly increase market concentration, acquisitions of nascent competitors by dominant firms, and mega mergers worth more than five billion, so that the merging parties would have to establish that their transaction would not risk materially lessening competition.

Finally, my bill reinvigorates enforcement against anticompetitive conduct by outlying exclusionary conduct that presents an appreciable risk of harming competition, placing the burden on the dominant firms to prove that their exclusionary conduct does not threaten competition.

If the pandemic has taught us anything, it’s that we need to act with urgency. This crisis has reshaped global economies in a way that scholars will be trying to understand for years, but the focus of policymakers should be laying the foundations of economic recovery, and competition is at the heart of that.

Competition brings us lower prices, innovation, improvement in products, forcing companies to pay workers fair wages and improving worker conditions, and it is competition that provides opportunities for entrepreneurs.

I am eager to work with our Canadian partners to foster economic growth and recovery as we look toward the future beyond the pandemic.

Thank you everyone.

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Competition Bureau Canada presents

Compliance Case Files

Episode 1

Bid-rigging

A Harmless Cup of Coffee

Scene 1: Visual

The following appear in chronological order on this motion graphic:

Compliance Case Files
Episode 1: Bid-rigging
A Harmless Cup of Coffee

Three icons appear on-screen:

1. a cup of coffee
2. a dollar sign
3. a prison cell door

Scene 2: Audio

Bid-rigging schemes take several forms.

The story you are about to hear is a common example based on real events.

These are not the real names of the companies involved.

For the sales representatives of Island Crew and Sunny Maintenance, the day started as most days do in the high-pressure world of sales—with meetings, phone calls and lots of coffee.

Scene 2: Visual

In front of a building and some trees, three individuals in some type of business uniform appear.

The three individuals drop out of sight and three different individuals, in uniforms representing a separate business, appear in their place.

The first set of individuals reappear and are identified as being from the company Island Crew. They move to the left and the second set of individuals appear on the right and are identified as being from the company Sunny Maintenance.

Four icons appear on-screen on top of the two sets of people:

1. a briefcase
2. a cellphone
3. documents
4. a cup of coffee

Scene 3: Audio

On this day, the Island Crew sales rep called his counterpart at Sunny Maintenance.

Scene 3: Visual

An Island Crew representative talks on the phone to a Sunny Maintenance representative. A phone icon appears between them.

Scene 4: Audio

Calls between these two competitors are not wise. They operate in the same town and compete for many of the same contracts tendered by municipal departments.

Scene 4: Visual

The following title appears: Maintenance services.

Three icons appear on-screen:

1. a spade
2. grass
3. flowers

Scene 5: Audio

The Island Crew sales representative invites his counterpart to join him for a coffee, so they can talk business and get to know each other better. Just a harmless cup of coffee between sales pros.

Scene 5: Visual

The following text appears along the top between quotation marks: Let’s get a coffee and talk sales.

The two sales reps sit in a café talking over coffee.

Scene 6: Audio

They meet and after several minutes of friendly chatter, the sales representative at Island Crew mentions how much time and effort he spends on competing for new business.

Even worse, a sizable chunk of this time and effort goes into preparing bids for contracts the company doesn’t win.

Scene 6: Visual

The following title appears: Today:

Below the title an equation appears:
Preparing bids = Time + Effort + Uncertainty.

The variables in the equation are represented by these icons:
Preparing bids is a briefcase.
Time is a clock.
Effort is a fully flexed muscle.
Uncertainty is scales.

Scene 7: Audio

He suggests the two of them figure out how they can reduce the time and effort they spend putting together bids, and still win more than enough big contracts to thrive.

Scene 7: Visual

The following title appears: Tomorrow:

Below the title a different equation for bidding appears:
Preparing bids = Less time + Less effort + No uncertainty.
The variables in the new equation show changes in some of the icons:
Preparing bids is still a briefcase.
Less time is a clock showing less time.
Less effort is a flexed muscle, but only slightly flexed.
No Uncertainty is now scales weighted heavily to one side.

Scene 8: Audio

Let’s share information about upcoming bids, he says.

Let’s figure out which of our companies is the better fit on these bids.

Then let’s prepare our respective bids so that we take turns being the designated successful bidder.

We’ll save time and effort, and we’ll make more money and higher profits.

Scene 8: Visual

The following appears in chronological order:

The following title appears: Share information.
Above the title, two envelopes with two arrows show the flow of information both ways.

The screen shifts left and an arrow points to the next step: Determine who wins.
Above that title are two briefcases, one marked with a checkmark and one with an X.

The screen shifts left and an arrow points to the next step: Take turns.
Above that title is a single circle made of two arrows cycling.

The screen shifts left and an arrow points to the next step: Make more money. Above that title is a dollar symbol.

Scene 9: Audio

“What’s not to like?” says the sales representative at Sunny Maintenance.

Scene 9: Visual

The screen returns to the two sales reps in the café talking over coffee.

Scene 10: Audio

The two figure out the details of the arrangement.

Scene 10: Visual

Island Crew and Sunny Maintenance are each writing out the details.

Scene 11: Audio

The two men stand up and shake hands, cementing their agreement.

Scene 11: Visual

Two hands shake in agreement.

Scene 12: Audio

What has just taken place is a crime that could have serious consequences for the two men and their companies, including jail time for the men and hefty fines for the companies.

A conversation that started over a harmless cup of coffee has turned into a bid-rotation agreement that violates Canada’s competition law.

Scene 12: Visual

Two hands appear in handcuffs.

Scene 13: Audio

Bid rotation is a form of bid-rigging. Bid-rigging is business collusion. And collusion among competitors is a crime.

Scene 13: Visual

The following appears in chronological order:

The following title appears: Bid rotation.
Above the title is a single circle made of two arrows cycling.

The screen shifts left and an equals sign connects to the next term: Bid-rigging.
Above that title is a scale weighted heavily to one side.

The screen shifts left and an equals sign connects to the next term: Business collusion.
Above that title are two briefcases connected by arrows showing the flow both ways.

Scene 14: Audio

Bid rotation occurs when two or more competitors agree to take turns presenting the most attractive bid.

Scene 14: Visual

The following text appears: Bid rotation = Taking turns. The text is encircled by two arrows cycling two briefcases that represent two different competitors.

Scene 15: Audio

Other bid-rigging practices are cover bidding, bid suppression or withdrawal, and market division.

Scene 15: Visual

The following appears in chronological order:

The following title appears: Cover bidding.
Below the title are two bids. One bid is shown with two dollar signs, but the other bid is clearly higher because it has four dollar signs.

The following title appears: Bid suppression or withdrawal. Below the title, a hand removes a bid from the tendering box.

The following title appears: Market division.
Below the title, a pair of scissors cuts up an area in two.

Scene 16: Audio

Cover bidding occurs when two or more bid-riggers agree which one of them will submit a winning bid, and the others agree to submit bids at much higher prices.

The companies give the impression of bidding competitively, but their actions are just a cover for their collusion.

Scene 16: Visual

The following text appears: Cover bidding
Bid-riggers agree who should win a contract, and submit false bids that are higher than the designated winner’s.

Below the text, at first only the more expensive bid shows, but then the cheaper bid appears.

Scene 17: Audio

Bid suppression or withdrawal takes place when one or more bid-rigger either abstains from making a bid or withdraws its bid after submitting it so that their competitor will win the contract.

Scene 17: Visual

The following text appears: Bid suppression or withdrawal. On bid-rigger withdraws their bid.

Below the text, a hand removes a bid from the tendering box.

Scene 18: Audio

Market division takes place when two or more competitors agree not to compete for specific customers or in certain geographic regions. They divide the market.

Scene 18: Visual

The following text appears: Market division. Carve up regions and customers.

Below the text, a pair of scissors cuts up an area in two.

Scene 19: Audio

Bid-rigging is a crime that has serious consequences.

Above all, it harms organizations that tender contracts by increasing their costs. When it targets public contracts, it amounts to a theft of taxpayer dollars that could otherwise be spent on important public needs.

Scene 19: Visual

The following title appears: Increased costs.

Below the title, an arrow swooping upward is marked with a dollar sign at its peak with people moving up it.

Scene 20: Audio

As a business owner or manager, you can take action to prevent employees from engaging in illegal behaviour.

Start by creating a culture of compliance in your organization.

Scene 20: Visual

The following title appears: A Culture of Compliance.

The title shifts left and below it, someone reads about Competition Law. To the right, three employees are identified with checkmarks to indicate they are being trained about complying with competition laws.

Scene 21: Audio

A big first step in creating this culture is to develop a compliance program.

Here are several concrete moves you can make to develop a solid compliance program.

Scene 21: Visual

The following title appears: A Compliance Program.

Scene 22: Audio

Task a senior manager to be responsible for compliance.

Scene 22: Visual

The following title appears: Tips: Make a senior manager responsible for compliance

Below the title, a senior manager is checking off three icons:

1. Documents marked with a dollar sign
2. A tipped scale
3. A telephone

Scene 23: Audio

Take a long, hard look at your operations and any market conditions that might expose your company to risk.

For example, if you bid for contracts through public or private tenders, make sure you have processes in place to avoid bid-rigging.

Scene 23: Visual

The following title appears: Tips: Critically assess your risks. Below the title is a business representative.

On the right of the screen, a magnifying glass closely examines business documentation for areas of risk.

Scene 24: Audio

Prepare and distribute a detailed document that identifies dos and don’ts in the highest risk areas for your business.

A do could be: Always use a certificate of independent bid determination in your submissions.

A don’t could be: Never meet with a competitor without first informing a superior.

Scene 24: Visual

The following title appears: Tips: Prepare dos and don’ts.

Below the title, a list of dos are checked off in green and a list of don’ts are marked with a red X.

Scene 25: Audio

Update your business’s code of conduct to cover bid-rigging explicitly.

Your code of conduct should also set out disciplinary measures for those employees who engage in illegal behaviour.

These measures may include termination of employment.

Scene 25: Visual

The following title appears: Tips: Update your code of conduct.

Below the title, a briefcase appears behind the code of conduct, which is being updated.

An icon on the right shows a gavel about to be hammered down.

A second icon has the word Terminated.

Scene 26: Audio

If applicable, inform your business’s lawyer about the program and the updated code of conduct.

Scene 26: Visual

The following title appears: Tips: Inform your lawyer.

Below the title, a magnifying glass closely examines the updated code of conduct and program represented by a briefcase.

Scene 27: Audio

Make sure your employees understand their role in complying with the law.

You can inform them in many ways.

Email them about your updated code of conduct.

Post a note to your company’s intranet, if it has one.

Host an all-staff meeting on recognizing and avoiding bid-rigging.

Include compliance awareness in your training for new and existing employees.

Scene 27: Visual

The following title appears: Tips: Inform and train your employees.

Below the title, employees appear.

Over their heads, email icons show that they have just been delivered to an inbox.

A manager makes a presentation to employees in front of a screen.

Scene 28: Audio

Update your business’s website to make public your code of conduct and, through it, your business’s pledge to be ethical.

Scene 28: Visual

The following title appears: Tips: Make it public

An employee works on a desktop to update a website.

Scene 29: Audio

These actions are just some of the moves your business can make to create a culture of compliance.

Think about other actions that make sense for your business.

Scene 29: Visual

The following title appears: Think deeper.
Below the title, an employee appears and three question marks representing action ideas appear on the right.

Scene 30: Audio

If you are unsure of anything, consult the Competition Bureau’s public resources and talk to your lawyer if you have one.

Scene 30: Visual

The following title appears: Consult the Competition Bureau’s public resources.

Below the title is an employee consulting the web and to the right, a briefcase with a gavel appears.

Scene 31: Audio

If you think your business may be on the wrong side of the law, cooperating early on is a much better approach than the alternative—as Island Crew and Sunny Maintenance found out.

Scene 31: Visual

A manager is in an office having a discussion with an official.

Scene 32: Audio

Municipal officials noticed suspicious bidding practices from the two companies.

Scene 32: Visual

The following title appears: Suspicion.

Below the title, a magnifying glass closely examines two bids, one from Island Crew and one from Sunny Maintenance. A warning symbol appears on each bid

Scene 33: Audio

The officials alerted the Competition Bureau.

Scene 33: Visual

The following title appears: Reporting.

A municipal official hands over information about a suspicious bid to a representative of the Competition Bureau.

Scene 34: Audio

The Bureau investigated and discovered evidence that two recent contracts were subject to bid rotation agreements between Island Crew and Sunny Maintenance.

Scene 34: Visual

The following title appears: Investigation.
An Island Crew bid is compared line by line with a Sunny Maintenance bid, and several suspicious items are marked in red and with warning symbols.

Scene 35: Audio

Officials at Sunny Maintenance cooperated with the investigation and were granted leniency in sentencing.

Scene 35: Visual

The following title appears: Cooperation.
A Sunny Maintenance representative is in an office having a discussion with a Competition Bureau representative.

Scene 36: Audio

The Bureau recommended to federal prosecutors that charges be brought against both companies for violating the Competition Act.

Scene 36: Visual

The following title appears: Violation.
Company representatives of both companies are shown with the scales of justice, tagged with a warning symbol.

Scene 37: Audio

Both companies pleaded guilty.

Scene 37: Visual

The following title appears: Resolution.
Company representative for both companies drop their heads in shame, as the gavel of justice appears.

Scene 38: Audio

Island Crew was fined $200,000. Its sales representative received an 18-month prison sentence.

Scene 38: Visual

The following title appears: Conclusion.

Below the title is the Island Crew sales rep.

To the right shows three outcomes for Island Crew:

1. $200,000 fine next to a dollar sign
2. 18 months in prison next to a jail cell symbol
3. Criminal record for sales rep.

Scene 39: Audio

Because Sunny Maintenance cooperated with the investigation, it received a reduced fine of $100,000.

The company’s sales representative was not charged.

Scene 39: Visual

The following title appears: Conclusion.

Below the title is the Sunny Maintenance sales rep.

To the right shows two outcomes for Sunny Maintenance, based on its cooperation:

1. $100,000 fine next to a dollar sign
2. Sales rep not charged

Scene 40: Audio

Stiff fines.

Prison sentences.

Criminal records.

All because of a harmless cup of coffee.

Scene 40: Visual

The following text appears in chronological order: Case closed

To learn more visit: competitionbureau.gc.ca

Below, the following icons appear: a cup of coffee, a dollar sign and a jail cell.

Scene 1: Audio

Competition Bureau Canada presents

Compliance Case Files

Episode 2

Price-fixing

The Fix Is Out

Scene 1: Visual

The following appear in chronological order on this motion graphic:

• Compliance Case Files
• Episode 2: Price-fixing
• The Fix Is Out.

Three icons appear on-screen:

1. a gas pump
2. a telephone with an eye hovering above it
3. a dollar sign.

Scene 2: Audio

Price-fixing schemes take several forms.

The story you are about to hear is a common example based on real events.

These are not the real names of any of the three companies involved.

Scene 2: Visual

In front of a building and some gas pumps, three individuals in business uniform appear.

The three individuals drop out of sight and three different individuals, in uniforms representing a separate business, appear in their place.

The three individuals drop out of sight and three more individuals, in uniforms representing a third separate business, appear in their place.

Scene 3: Audio

The owner of one of these companies, a chain of gas stations, calls the Competition Bureau.

She explains that the owners of other local gas chains are pressuring her to participate in an agreement they have to fix the price of gas.

Scene 3: Visual

The following text appears: “Good morning, Competition Bureau Canada. How may I help you?”

A Bureau official answers the phone.

To the right, the company owner appears. She is calling the Bureau.

The following text appears above the company owner: “Valley Energy is fixing prices with two competitors, City Fuels and The Gas Pump, and they want me to get on board.”

Scene 4: Audio

They want her to join in, so they can all make more money. But she thinks something is wrong.

Scene 4: Visual

The following text appears above the company owner on the right of the screen: “What these companies are doing is illegal.”

Scene 5: Audio

The Competition Bureau takes all allegations of price-fixing very seriously and starts investigating.

Scene 5: Visual

An official closely examines gas pump meters for Valley Energy, City Fuels and The Gas Pump, which all read the same price: $1.49, at the same time of day.

Scene 6: Audio

The Bureau has the power under the Competition Act and Criminal Code to carry out wiretaps, execute search warrants, and subpoena records and witnesses.

Scene 6: Visual

The following title appears: Wiretaps

Icons representing the wiretapped phone lines appear above the title.

The following title appears: Search warrants. Above the title, an official knocks at a door with a search warrant in hand.

The following title appears: Subpoenas.
Above the title, two people face each other at a table, with one being an official serving a subpoena.

Scene 7: Audio

Over several months, investigators interview witnesses and obtain wiretaps to conduct surveillance on the businesses.

Scene 7: Visual

A calendar icon appears followed by the following three icons: wiretapping icon, search warrants icon and subpoenas icon to show the many months involved in the work.

Scene 8: Audio

Investigators also obtain warrants to search three corporate locations, nine homes and two home offices.

They seize thousands of electronic and paper records.

Scene 8: Visual

A magnifying glass closely examines three businesses, nine houses and two houses that contain home offices.

Print documents and a file folder icon containing many electronic documents circle in a continuous loop.

Scene 9: Audio

The investigation uncovers evidence that senior officials at three companies have agreed to fix the price they charge for gas at the pumps.

They call each other regularly to agree on prices.

The Competition Bureau uses wiretaps to capture the price-fixing conversations.

Scene 9: Visual

An official wiretaps phone conversations among company senior officials for the three companies.

Scene 10: Audio

Price-fixing can occur in every industry, in any region of the country, and among large or small companies.

Scene 10: Visual

Warning symbols appear one by one across all regions on a map of Canada.

Scene 11: Audio

Price-fixing occurs most often in two ways.

Scene 11: Visual

The following title appears: Price-fixing.

Scene 12: Audio

The vast majority of cases involve agreements by competitors to fix the price for their products, instead of letting a competitive market determine prices.

Scene 12: Visual

The following title appears: Fixing the price paid by consumers.

Below the title, the three company officials talk on the phone to each other, resulting in a gas price set at $1.59 to be paid by the consumer.

Scene 13: Audio

It can also involve agreements by companies to fix a price along their supply chain.

Scene 13: Visual

The following title appears: Fixing the price paid by manufacturers, distributors and retailers.

Below the title, goods flow and are paid for in the supply chain, starting with a manufacturer, represented by a factory, and then the distributor, represented by a truck, and finally the retailer, represented by a gas station.

Scene 14: Audio

Cracking down on price-fixing is a top priority for the Competition Bureau. It takes action when it finds evidence that shows competitors have reached an illegal agreement.

Scene 14: Visual

The following title appears: Cracking down on price-fixing is a high priority.

Below the title is a Competition Bureau official who follows up on the warning signs and finds the three suspected companies have been price-fixing. The three company officials appear with checkmarks next to them and symbols tying them to a dollar symbol.

Scene 15: Audio

The consequences of wrongdoing can be stiff: jail terms for individuals of up to 14 years, fines set at the discretion of the court on corporations, or a combination of both.

Scene 15: Visual

The following title appears: Up to 14 years.
Above the title, a jail cell door appears.

The text shifts left and the following title appears: fines set at the discretion of the court.
Above the title, a dollar sign appears.

To the right, the following title appears: Both.
Above that title, a jail cell door and dollar sign appear together.

Scene 16: Audio

As a business owner or manager, you can take action to prevent employees from engaging in illegal behaviour.

Start by creating a culture of compliance in your organization.

Scene 16: Visual

The following title appears: A Culture of Compliance.

The title shifts left and below it, someone reads about competition law. To the right, three employees are identified with checkmarks to indicate they are being trained about complying with competition rules.

Scene 17: Audio

A first step in creating this culture is to develop a compliance program.

Here are several concrete moves you can make to develop a solid compliance program.

Scene 17: Visual

The following title appears: A Compliance Program.

Scene 18: Audio

Task a senior manager to be responsible for compliance.

Scene 18: Visual

The following title appears: Tips: Make a senior manager responsible for compliance.

Below the title, a senior manager is checking off three icons:

1. Documents marked with a dollar sign
2. A tipped scale
3. A telephone.

Scene 19: Audio

Take a long, hard look at your operations and any market conditions that might expose your company to risk.

For example, if you have just a few, established competitors, or you operate in a small region where everyone knows each other, these conditions could increase the risk of conversations that lead to illegal agreements.

Scene 19: Visual

The following title appears: Tips: Critically assess your risks.

A magnifying glass closely examines company documentation for areas of risk.

Scene 20: Audio

Prepare and distribute a detailed document that sets out dos and don’ts in the highest risk areas for your business.

A do could be: use caution when collecting and sharing sensitive business information.

A don’t could be: avoid any discussions with competitors about pricing.

Scene 20: Visual

The following title appears: Tips: Prepare dos and don’ts.

Below the title, a list of dos are checked off and a list of don’ts are marked with an X.

Scene 21: Audio

Update your business’s code of conduct to cover price-fixing explicitly.

Your updated code of conduct will encourage employees to ask questions about illegal behaviour and report potentially illegal behaviour.

Your code of conduct should also set out disciplinary measures for those employees who engage in illegal behaviour.

These measures may include termination of employment.

Scene 21: Visual

The following title appears: Tips: Update your code of conduct.

Below the title, a briefcase appears behind the code of conduct, which is being updated.

An icon on the right shows a gavel about to be hammered down.

A second icon with the word Terminated appears.

Scene 22: Audio

If applicable, inform your business’s lawyer about the program and the updated code of conduct.

Scene 22: Visual

The following title appears: Tips: Inform your lawyer.

Below the title, a magnifying glass closely examines the updated code of conduct and program, represented by a document and briefcase.

Scene 23: Audio

Make sure your employees understand their role in complying with the law.

You can inform them in many ways.

Email them about your updated code of conduct.

Post a note to your company’s intranet, if it has one.

Host an all-staff meeting on recognizing and avoiding price-fixing.

Include compliance awareness in your training for new and existing employees.

Scene 23: Visual

The following title appears: Tips: Inform and train your employees.

Below the title, employees appear. Over their heads, email icons show that they have just been delivered to their inbox.

Subsequently, a manager gives a presentation in front of employees.

Scene 24: Audio

Update your business’s website to make public your code of conduct and, through it, your pledge to do business ethically.

Scene 24: Visual

The following title appears: Tips: Make it public.

An employee works on a desktop to update a website.

Scene 25: Audio

These actions are just some of the moves your business can make to create a culture of compliance.

Think about other actions that make most sense for your business.

Scene 25: Visual

The following title appears: Think deeper.
Below the title, an employee appears and three question marks representing ideas appear on the right.

Scene 26: Audio

If you are unsure of anything, consult the Competition Bureau’s public resources, and talk to your lawyer if you have one.

Scene 26: Visual

The following title appears: Consult the Competition Bureau’s public resources about compliance, whistleblowing, immunity and leniency.

Below the title is an employee consulting the web and to the right, a briefcase with a gavel appears.

Scene 27: Audio

If you think your business may be on the wrong side of the law, cooperating early on is a much better approach than the alternative—as the three fuel retailers found out.

Scene 27: Visual

The following title appears: Cooperation
Below the title, an individual is in an office having a discussion with a Competition Bureau official.

Scene 28: Audio

Prosecutors used the evidence gathered by Competition Bureau investigators to put together a powerful case.

Scene 28: Visual

The following title appears: Investigation.

Below the title, a magnifying glass closely examines three documents, one each from Valley Energy, City Fuels and The Gas Pump. Warning symbols and items marked in red appear on each document, indicating something suspicious.

Scene 29: Audio

Executives at all three companies realized the case’s strength, too.

The companies pleaded guilty to charges of price-fixing without a trial.

Scene 29: Visual

The following title appears: Resolution

Below the title, executives for all three companies drop their heads in shame, as the gavel of justice appears.

Scene 30: Audio

Valley Energy pleaded guilty to price-fixing and was fined $985,000.

Scene 30: Visual

The following title appears: Conclusion.

Below the title is the Valley Energy executive. To the right shows the Valley Energy fine of $985,000.

Scene 31: Audio

City Fuels pleaded guilty to price-fixing and was fined $900,000.

Scene 31: Visual

The following title appears: Conclusion.

Below the title is the City Fuels executive. To the right shows the City Fuels fine of $900,000.

Scene 32: Audio

The Gas Pump pleaded guilty to price-fixing and was fined $1,150,000.

Scene 32: Visual

The following title appears: Conclusion.

Below the title is The Gas Pump executive. To the right shows The Gas Pump’s fine of $1,150,000.

Scene 33: Audio

Three guilty pleas.

Three stiff fines.

Three tarnished business reputations.

The fix is out.

Scene 33: Visual

The following title appears: Case closed.

To learn more visit competitionbureau.gc.ca.

Three icons re-appear on-screen:

1. a gas pump
2. a telephone with an eye hovering above it
3. a dollar sign.

Scene 1: Audio

Musical soundtrack

Scene 1: Visual

Competition Bureau Canada presents “Make Your Mark”, Episode 1: At the Store

Title card includes images representing a container, dollar sign and receptacle.

Scene 2: Audio

Canada has three labelling laws that the Competition Bureau enforces.

Scene 2: Visual

Three sheets titled Consumer Packaging and Labelling Act, Precious Metals Marking Act and Textile Labelling Act slide into frame.

Scene 3: Audio

Let’s delve into some important details of the Consumer Packaging and Labelling Act.

Scene 3: Visual

The screen zooms into the sheet titled “Consumer Packaging and Labelling Act”

Scene 4: Audio

The Act applies to prepackaged non-food consumer products.

Scene 4: Visual

The caption “Prepackaged non-food consumer products” appears.

Scene 5: Audio

A prepackaged consumer product is any product that is packaged in a container or something similar, and sold to or used by consumers without being re-packaged.

If a product is not prepackaged, the Act does not apply.

Scene 5: Visual

Beneath the caption “Prepackaged non-food consumer products” visual representations of a “container”, “receptacle”, “wrapper” and “confining band” appear.

Scene 6: Audio

The Consumer Packaging and Labelling Act is meant to achieve three goals.

Scene 6: Visual

The silhouette of a person looking at containers on shelves walks into the frame.

Scene 7: Audio

To provide consumers with access to basic and accurate label information, so they can make informed decisions about the products they purchase.

Scene 7: Visual

Under the caption “1. Provide consumers with access to basic and accurate label information”, a person’s hands hold up a container and point to its clearly visible label.

Scene 8: Audio

To standardize the form and manner of information required on labels.

Scene 8: Visual

Under the caption “2. Standardize the form and manner of information required on labels” a person’s hands hold up two different bottles where both labels are visible.

Scene 9: Audio

And to protect consumers from false or misleading representations.

Scene 9: Visual

Under the caption “3. Protect consumers from false or misleading representations” a person’s hands hold up a container and points to a visible label. The label reads, “protect up to -50% Celsius”.

Scene 10: Audio

The Act achieves these goals, first, by prohibiting businesses from making false or misleading representations through product labels.

Scene 10: Visual

The caption “Prohibits false or misleading representations through product labels” appears and beneath it a visual representation of a “Detergent” bottle with a label saying “Never wash again”, “Powdered cleaner” box with a label that reads, “Kills 100% of germs!” and “Bleach” bottle with a label saying, “Does not stain!” appear.

Scene 11: Audio

Second, by giving authorities the power to inspect products and seize any that don’t conform to the law.

Scene 11: Visual

Beneath the caption “Gives authorities power to inspect and seize products” a person’s hands hold up the “Powdered cleaner” box. With a magnifying glass, the inspector finds a label that reads, “Kills 100% of germs!”.

Scene 12: Audio

And, third, by empowering authorities to take action against any business in a product’s supply chain that breaks the law.

Scene 12: Visual

Beneath the caption “Empowers authorities to take enforcement action” the symbol of a gavel appears. The following three visual representations are gathered underneath the gabble: “manufacturer”, “distributor” and “retailer”.

Scene 13: Audio

Under the Consumer Packaging and Labelling Act, three mandatory statements must be shown on product labels.

Regulations linked to the Act specify how and where these statements must appear.

Scene 13: Visual

The caption “the Consumer Packaging and Labelling Act” appears.

Scene 14: Audio

The first mandatory statement is the product’s identity.

Scene 14: Visual

Beneath the caption “the Consumer Packaging and Labelling Act” a visual representation of the soap bottle appears. Under the image, there’s a green checkmark and a caption that reads, “1. Product identity”.

Scene 15: Audio

The second is the product’s net quantity.

Scene 15: Visual

Beneath the caption “The Consumer Packaging and Labelling Act” a second visual representation of a bottle appears beside the soap bottle. Under the second image, there’s a green checkmark and a caption that reads, “2. Product net quantity”.

Scene 16: Audio

And the third is the product’s dealer name and principal place of business.

Scene 16: Visual

Beneath the caption “The Consumer Packaging and Labelling Act” a third visual representation of a hand holding a building appears beside the bottle. Under the third image, there’s a green checkmark and a caption that reads, “3. Product dealer name and address”.

Scene 17: Audio

A dealer is a retailer, manufacturer, processor or producer of a product.

It also refers to a person who is engaged in the business of importing, packing or selling any product.

Scene 17: Visual

Under the caption “Dealer= retailer, manufacturer, processor, producer, or person who imports, packs or sells products” there is a visual representation of a “Dealer”, the equal symbol, “Retailer”, “Manufacturer” and “Importer”.

Scene 18: Audio

Businesses can take three straightforward steps to comply with the law.

Scene 18: Visual

A person holds a checklist.

Scene 19: Audio

The first step is to make sure the product’s identity and net quantity are displayed on the product’s front panel.

Also make sure this information is in English and French.

Scene 19: Visual

The caption “1.Put product identity and net quantity on the principal display panel” appears. Beside the caption, a detergent bottle appears and on it there’s a clear front side label.

The product label slides into the frame and following text is displayed on the label:

Fresh n’ Clean/frais et propre, Laundry Detergent/detergent à lessive and 4 liters/litres.

Scene 20: Audio

The product identity is the generic name and not the brand name of the product.

Any additional information, such as a warranty or instructions, does not have to appear in English and French.

That said, dealers are encouraged to use both languages.

Plus, keep in mind that Quebec has additional requirements for using French on products marketed and sold in the province.

Scene 20: Visual

The text “Laundry Detergent/détergent à lessive” is framed with a green checkmark and is identified with a caption that reads, “Generic Name”.

The text “Fresh n’ Clean/frais et propre” is framed with a red x mark and is identified with a caption that reads, “Brand Name”.

Scene 21: Audio

The second step is make sure the net quantity information is expressed in metric units or by numerical count. The use of an additional non-metric quantity is allowed if it is not false or misleading.

Net quantity that uses numbers and symbols only is considered bilingual.

If a word is used in the net quantity, it’s necessary to show the equivalent word in French.

Scene 21: Visual

Caption “2. Net quantity information in metric units or by numerical count” slides in. The text “4 liters/litres” is framed and is identified with a caption that reads “Net Quantity”.

Scene 22: Audio

The third step is make sure the dealer’s name and principal place of business is an address suitable for postal delivery.

A name and address are necessary because consumers may wish to get in touch with a business to ask a question or seek additional information on the product.

Scene 22: Visual

The second caption “2. Net quantity information in metric units or by numerical count” disappears along with the detergent bottle and the front side label.

The caption “3.Full name and an address suitable for postal delivery” appears. Below, there’s a detergent bottle and on it there’s a clear back side label.

The product label slides into the frame. On it, there are three visual representatives of a cup filled with liquid, shirt and washing machine. Beneath the images there are texts. The first one reads: “Add detergent, then add clothes/Ajouter le détergent, puis les vêtements”. The second text “ Distr. by/par CLEAN LAUNDRY CO. TORONTO, ON M1B 2B6” is framed and is identified with a caption that reads, “Dealer info”.

Scene 23: Audio

The dealer name and address can be located anywhere on the outside surface of the package except the bottom.

The name and address do not need to be bilingual.

But, again, dealers are encouraged to use both languages. And, again, keep in mind that Quebec has additional requirements for using French on products marketed and sold in the province.

Scene 23: Visual

A new visual representation of a detergent bottle with a clear front side label slides in.

Along with the image, a caption that reads “The dealer name and address can be located anywhere on the outside surface of the package except the bottom” appears.

The top and two sides of the detergent bottle are framed with green lines and checkmarks. The bottom of the bottle is framed with a line but with red x mark.

Scene 24: Audio

The Consumer Packaging and Labelling Act outlines penalties that a product dealer can face if their packages and labels do not comply with the law.

A product dealer who does not comply with the law could be fined up to $10,000 and face up to one year in prison.

Scene 24: Visual

The screen is split in two vertical halves.

On the left side of the screen, we see the silhouette of a person wearing a tie and a nametag looking down.

On the right side of the screen, the following text is displayed:

Dealer violations of sections 4 to 9 of the act = up to… $ 10,000 fine. Penalty for individuals = up to… $ 3,000 fine.

A symbol for jail cell bars is placed next to the text “Up to 1 year in prison”.

Scene 25: Audio

The Competition Bureau of Canada has the legal authority to carry out unannounced inspections, to examine goods, and to seize any product that violates the Act.

Scene 25: Visual

The screen is split in two vertical halves.

On the left half of the screen, below the caption “Unannounced inspections”, a hand with a magnifying glass examines detergent bottles on a shelf.

On the right half of the screen, below the caption “Examine and seize products”, a person holds a checklist and each item is marked with red Xs. Behind the checklist are boxes labelled “seized products”.

Scene 26: Audio

Consumers who think a company or individual has broken the law can notify the Competition Bureau. Business representatives have this right, too.

Scene 26: Visual

Under the label “Search ‘Complaint form’ on the Competition Bureau’s website”, a search result page for “complaint form” is displayed.

Scene 27: Audio

These are the most important facts about the Consumer Packaging and Labelling Act.

Find more detailed information on the Competition Bureau Compliance Bootcamp website.

Scene 27: Visual

Beneath the caption “Search ‘Compliance Bootcamp’ on the Competition Bureau’s website. competitionbureau.gc.ca”. Under these captions, symbols of a container, dollar sign and receptacle are displayed.

Scene 28: Audio

Finally, if you are a business owner or operator and have questions that the Bootcamp resources do not answer, Competition Bureau officials are standing by to help you make your mark.

Scene 28: Visual

The caption “Search ‘Compliance Bootcamp’ on the Competition Bureau’s website” is replaced by the caption “Search ‘Question Form’ on the Competition Bureau’s website”. Below the caption, symbols of a container, dollar sign and receptacle are displayed.

The symbols are replaced with a caption that reads, “Make your mark”.

Scene 29: Audio

Musical soundtrack

Scene 29: Visual

Competition Bureau Canada

Scene 1: Audio

Musical soundtrack

Scene 1: Visual

Competition Bureau Canada presents “Make Your Mark”, Episode 2: At the Department Store

Title card includes symbols of shirts, socks and shorts.

Scene 2: Audio

Canada has three labelling laws that the Competition Bureau enforces.

Let's delve into some important details of the Textile Labelling Act.

Scene 2: Visual

Three sheets titled Consumer Packaging and Labelling Act, Textile Labelling Act and Precious Metals Marking Act slide into frame. The screen zooms into the sheet titled Textile Labelling Act.

Scene 3: Audio

The Act applies to consumer textile fibre products.

A consumer textile fibre product is any consumer textile article and any textile fibre, yarn or fabric sold to consumers directly.

This definition does not include textile fibre products that are used to manufacture, process or finish products for sale.

Scene 3: Visual

Beneath the caption “Canadian consumer textile fibre products”, symbols of “fibre”, “yarn”, and “fabric” appear.

Scene 4: Audio

The Textile Labelling Act is meant to achieve two goals.

It enables consumers to choose textiles on the basis of their fibre content.

Scene 4: Visual

The silhouette of a person looking at hanged shirts and folded clothes walks into frame.

Under the caption “1. Enable consumers to choose textiles based on fibre content”, the hand of a person points to the label of a shirt.

Scene 5: Audio

And it protects consumers from misrepresentations in the labelling and advertising of textile fibre products.

The Act achieves these goals in three ways.

Scene 5: Visual

Under the caption “2. Protect consumers from misrepresentations on labels and in advertising”, a person’s hands hold up a pair of pants with a clearly visible label.

Scene 6: Audio

First, it prohibits businesses from selling, importing into Canada, or advertising consumer textile articles unless they are labelled according to the law.

Scene 6: Visual

Under the caption “1. Prohibits sale, import and advertisement of consumer textile articles without proper labels”, a tuque, a shirt and a scarf slide into frame. Each item of clothing has clearly visible labels.

Scene 7: Audio

Second, the Act prohibits businesses from making false or misleading representations through their product labels and advertising.

Scene 7: Visual

Under the caption “2. Prohibits false or misleading representations through product labels and advertising”, a person holds a tuque in one hand, and points to an attached label with the other. The label reads “100% wool/laine. Hand made. Distr. by/par TOP TAILORS CO. TORONTO, ON M1B 2B2”

Scene 8: Audio

And third, the Act gives authorities the power to inspect textile fibre products and to seize any that do not conform to the law.

Scene 8: Visual

Under the caption “3. Gives authorities power to inspect and seize products”, an enforcement agent holds a shirt with one hand, and uses a magnifying glass with the other to magnify portions of the garment and a label that reads “100% Cotton/Coton Distr. by/par TOP TAILORS CO. TORONTO, ON CA 19737”.

Scene 9: Audio

The Textile Labelling Act sets out the two mandatory information statements that dealers must show on their textile labels.

Scene 9: Visual

A person holds up a document with two paragraphs of generic text are numbered “1.” and “2.”.

Scene 10: Audio

For the record, a dealer is a manufacturer, processor, finisher or retailer of a textile fibre product, or a business that imports or sells a textile fibre product.

Scene 10: Visual

Under the caption “Dealer = retailer, manufacturer, processor, producer, or person who imports, packs or sells products”, the words “dealer = retailer, manufacturer, importer” are represented by individual symbols. Precisely, an outstretched hand under a kiosk, a store, a factory and a boat.

Scene 11: Audio

The first piece of mandatory information is the fibre content expressed in percentages.

The generic name of each fibre present, in an amount of five percent or more, must be stated as a percentage of the total fibre mass of the article.

This percentage must appear immediately before or after the generic name of the fibre.

The second mandatory information is the full name and postal address of the dealer.

Dealers located in Canada can use an identification number—referred to as a CA Number—instead of their full name and postal address.

Canadian dealers can get a CA number by applying to the Competition Bureau.

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Under the caption “1. Percentage and generic name of each fibre” a shirt with a clearly visible label is displayed.

Two magnified versions of the shirt’s label are displayed next to each other, with the word “or” separating them.

Above the first label, there is the caption “generic name”. A line is drawn from this caption to the first half of the label, which reads “100% Cotton/Coton”.

Under the first label, there is the caption “dealer info”. A lie is drawn from this caption to the second half of the label, which reads “Distr. by/par TOP TAILORS CO. TORONTO, ON M1B 2B2”.

The first half of the second label reads “100% Cotton/Coton”. Beneath this label, there is the caption “CA Number”. A line is drawn from this caption to the second half of the label, which reads “CA 19737”.

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Dealers can take three straightforward steps to comply with the Textile Labelling Act.

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First, make sure mandatory information labels can be seen and read easily by consumers at the time of purchase.

Some consumer textile articles require a permanent label attached in a way that it can be expected to withstand and remain legible throughout at least ten cleanings of the article.

See Schedule I of the Act’s regulations for a list of these articles.

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A shirt, a pair of pants and a towel are displayed next to each other. Each item has a clearly visible label. Beneath the items, there is the caption “Schedule I Permanent Label”.

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Other consumer textile articles are exempt from labelling requirements.

See Schedule II of the Act’s regulations for a list of these articles.

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A purse, a table with chairs and an umbrella as well as a trolley filled with boxes and a stuffed animal are displayed. None of the items have clearly visible labels. Beneath the items, there is the caption “Schedule II Exempt from Label”.

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Other consumer textile articles may bear a non-permanent label such as a hang-tag or sticker instead of a permanent label.

See Schedule III of the Act’s regulations for a list of these articles.

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A tuque, mittens and a scarf are displayed. Each item has hang tags. Beneath the items, there is the caption “Schedule III Non-permanent Label”.

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Here are a couple more points to bear in mind:

A dealer is not required to include further labelling when a consumer textile article is sold in a wrapper, package or container, and the label attached to the article is clearly visible to consumers.

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A caption reads “Repeated labelling not required when the label showing fibre composition and dealer identity is visible through packaging”.

Beneath the caption are a shirt in a transparent wrapper and of a box. Neither item has visible labels.

The images are labeled “wrapper” and “package/container” respectively.

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That said, a dealer must repeat the label information on the wrapper, package or container when the label attached to the article is not visible through the wrapper, package or container.

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A caption reads “Repeated labelling not required when the label showing fibre composition and dealer identity is visible through packaging”.

Beneath the caption are a shirt in a transparent wrapper and of a box. Neither item has visible labels.

The images are labeled “wrapper” and “package/container” respectively.

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The second kind of mandatory information on labels deals with language.

Generic names and fibre content must be in English and French.

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Under the caption “2. English and French” a shirt with a clearly visible label is displayed.

A magnified version of the shirt’s label is displayed. Above the label, there is the caption “generic names and fiber content”. A line is drawn from this caption to the first half of the label, which reads “90% cotton/coton 10% elastane/élasthanne”.

The second half of the label reads “Made in India CA 19737”

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Here are two more points to bear in mind.

The first point relates to country of origin.

A dealer does not have to identify the country of origin on an imported textile product unless the dealer refers to the fact that the article, fabric or fibre is imported.

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Under the caption “Country of origin must be identified if the dealer refers to the fact that the article, fabric or fibre is imported”, a shirt with a clearly visible label is displayed.

A magnified version of the shirt’s label is displayed. Beneath the label, there is the caption “Country of origin”. A line is drawn from this caption to the second half of the label, which reads “Made in India CA 19737”

The first half of the label reads “90% cotton/coton 10% elastane/élasthanne”.

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The second point refers to care information.

It’s not mandatory. But if a dealer includes care information, it must accurately reflect an appropriate method of care.

A dealer may supply written care instructions in English or French. Yet keep in mind, Québec has requirements concerning the use of French on all textile articles marketed and sold in the province.

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Under the caption “Care information”, a shirt is displayed. There is a visible label inside the shirt’s collar, and other visible labels attached to the shirt’s side.

A magnified version of the label attached to the shirt’s side is displayed and displays three symbols of care information: “iron”, “do not bleach” and “low heat drying”.

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The third kind of mandatory information on labels deals with name and address.

A dealer must make sure their name and principal place of business is their full name and an address suitable for postal delivery.

A name and address are necessary because consumers may wish to get in touch with a business to ask questions or seek additional information.

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Under the caption “3. Full name and an address suitable for postal delivery”, a shirt with a clearly visible label is displayed.

A magnified version of the shirt’s label is displayed. Beneath the label, there is the caption “Name and Address”. A line is drawn from this caption to the second half of the label, which reads “Distr. by/par TOP TAILORS CO. TORONTO, ON M1B 2B2”.

The first half of the label reads “90% cotton/coton 10% elastane/élasthanne”.

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The Textile Labelling Act outlines penalties that a dealer can face if they break the law.

A dealer who does not comply with the law could be fined up to $10,000 and face up to one year in prison.

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The screen is split in two vertical halves.

On the left side of the screen, we see the silhouette of a person wearing a tie and a nametag looking down.

On the right side of the screen, the following text is displayed:

A dealer in violation of sections 3, 4 or 5 of the law is liable to a fine up to… $10,000 fine. Others in violation of sections 3, 4 or 5 of the law are liable for… $3,000 fine and/or Up to 1 year in prison.

A symbol for jail cell bars is placed next to the text “Up to 1 year in prison”.

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The Competition Bureau of Canada has the legal authority to carry out unannounced inspections, to examine textile articles, and to seize any article that violates the law.

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The screen is split in two vertical halves.

On the left half of the screen, below the caption “Unannounced inspections”, the hand of an enforcement officer with a magnifying glass examines hanged shirts and folded clothes.

On the right half of the screen, below the caption “Examine and seize products”, a person holds a checklist and each item is marked with red Xs. Behind the checklist are boxes of seized products.

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Consumers who think a dealer has broken the law can notify the Competition Bureau. Business representatives have this right, too.

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Search “Complaint form” on the Competition Bureau’s website.

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These are the most important facts about the Textile Labelling Act.

Find more detailed information on the Competition Bureau Compliance Bootcamp website.

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Search “Compliance Bootcamp” on the Competition Bureau’s website.

Symbols representing shorts, socks and shirts are displayed.

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Finally, if you are a business owner or operator and have questions that the Bootcamp resources do not answer, Competition Bureau officials are standing by to help you make your mark.

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Search “Question Form” on the Competition Bureau’s website.

Symbols representing shorts, socks and shirts are displayed and replaced with the words “Make your mark”.

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Musical soundtrack

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Competition Bureau Canada

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Competition Bureau Canada presents

Make Your Mark

Episode 3

Precious Metals Marking Act: At the Jeweller

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Canada has three statutes that are enforced by the Competition Bureau.

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Consumer Packaging and Labelling Act

Textile Labelling Act

Precious Metals Marking Act

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Let’s delve into some important details of the Precious Metals Marking Act.

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Precious Metals Marking Act

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The act applies to precious metal articles that are made of gold, palladium, platinum, silver or an alloy that mixes any of those metals.

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Consumer articles that contain precious metals

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These articles include products such as jewellery and watches, as well as hollow ware, flatware and eyeglass frames plated with precious metals.

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The Precious Metals Marking Act is meant to achieve three goals.

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To ensure information provided to consumers on the quality of a precious metal article is not misleading or deceptive.

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1. Protect consumers from misrepresentative markings

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To provide consumers with uniform descriptions and quality markings of precious metal articles.

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2. Provide consumers with standard and accurate information

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The act achieves these goals by prohibiting businesses from selling, importing into Canada, or advertising any precious metal article in a manner that is false or misleading as to the article’s precious metal content.

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Prohibits sale, import or advertising of articles with false or misleading precious metal content

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The act also prohibits businesses from applying a mark to a plated article guaranteeing the durability or wear of the precious metal plating for a period of time.

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Prohibits marking plated articles with durability or wear guarantees

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A quality mark is applied to a precious metal article to indicates the quality, quantity, fineness, weight, thickness, proportion or kind of precious metal in the article.

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Quality mark = true precious metal content of an article

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When a precious metal article has a quality mark applied to it, a registered trademark must also be applied to the article in the same manner.

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A business may use a national mark on a precious metal article:

• If the article is wholly manufactured in Canada.
• If the precious metal is of a quality prescribed in the Precious Metals Marking Regulations.
• If the article has a quality mark that conforms to section 4 of the Precious Metals Marking Act and a trademark that conforms to the same section of the act.
• And if the Commissioner of Competition has delivered a signed certificate to the business.

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• Made in Canada
• High quality
• The right quality mark and trademark
• Signed, sealed, delivered

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The Precious Metals Marking Act outlines penalties that a dealer can be subject to if they contravene the law.

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Every business that contravenes the act is guilty of an offence and liable to a fine of up to $500.

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Violations = $500

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The Competition Bureau of Canada has the legal authority to carry out unannounced inspections, to examine precious metals products, and to seize and detain any that violate the act.

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Unannounced inspections

Examine, seize and detain goods

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Consumers who believe a company or an individual has contravened the act can notify the Competition Bureau. Business representatives have this right, too.

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Search “Complaint form” on the Competition Bureau’s website

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Those were the most important facts about the Precious Metals Marking Act.

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Find more detailed information on the Competition Bureau Compliance Bootcamp website.

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Search “Competition Bureau Compliance Bootcamp” on Google

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If you are a business owner or operator and have questions that the Bootcamp resources do not answer, Competition Bureau officials are standing by to give you guidance on precious metals markings—on how to make your mark.

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Music

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The following text appears: What is Right to Repair?

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Let’s say you buy a product.

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Three icons appear from left to right:

1. a microwave
2. a washing machine
3. a refrigerator

The following text appears: What is Right to Repair?

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Do you own it…100%?

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The screen moves to the right and laptop appears in the bottom left of the screen. A question mark appears on the laptop screen.

The following text appears: Do you own it 100% ?

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Can you do anything you want with it… like repair it yourself, or find someone to do it for you?

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The screen moves left to reveal a person leaning over a laptop.

The following text appears: Can You Do Anything You Want With It.

Under the text, a motion graphic of a screwdriver, a motherboard and a question mark appear.

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It depends.

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The screen moves right. A man appears on the left side of the screen with his hands open and out.

On the right side of the screen, the following text appears:

Can you do
anything
you want
with it. It
depends.

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Sometimes you don’t have a choice in how your product is repaired.

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On the left side of the screen, an X in a big circle appears on top of a remote control.

On the right side of the screen, the following text appears: Sometimes you don’t have a choice.

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Right to Repair is a concept that aims to change that.

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A motion graphic of nuts and bolts appears along with the following text: Right to Repair.

Then, the following words emerge from the bottom of the screen: Aims to Change That.

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It calls for consumers to be able to choose any repairer they wish.

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On the left side of the screen, a person wearing a baseball cap crouches in front of a computer.

Then, the following text emerges from the bottom of the screen: Consumers should be able to choose any repairer they wish.

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or even repair their own products.

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The screen shifts left and a person with a ponytail fixes a machine. The following text appears on the left of the screen: Or repair it themselves.

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For this to happen manufacturers would have to make parts, tools, and information available to both consumers and repairers.

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An image of a motherboard drops from the top of the screen and fills the screen.

The motherboard shrinks and moves up to the top of the screen. A screwdriver, two screws and a motherboard appear, along with the following text:

parts
tools
information

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Take Mary, for instance.

Her laptop isn’t working.

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The screen moves left to reveal a person (Mary), along with a floating laptop and, on the laptop screen, an orange circle and an x through it.

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Without Right to Repair, she may need to take it here…

But with Right to Repair, she can choose to go here where it may be less expensive…

Here for higher quality…

Here because it’s more convenient …

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Mary remains on the screen, along with an image of a building and a large green checkmark in a circle floating above and a text which reads: Manufacturer’s Authorized Repairer

The symbols disappear and to Mary’s right, the symbol for better price (>price) appears along with a dollar sign above a building

The symbols disappear and to Mary’s right, the following icons appear: a green thumbs up, a building and the symbol for higher quality (>quality)

The symbols disappear, and to Mary’s right, three images appear: the symbol for greater convenience (>convenience), a building and a clock

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Or even tackle the repairs herself.

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A large image of Mary appears, along with the following text: I’ve got this!

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With Right to Repair, Mary has the power of choice and can make competition work for her.

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Mary remains on the screen. To her right, images of four buildings of different sizes appear.

She points to the word CHOICE and a green check mark in a circle appears on the screen.

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Right to Repair: good for competition, good for consumers.

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A large thumbs up appears on the left-hand side of the screen along with the following title: Right to Repair.

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Competition Bureau

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Canada Wordmark

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Music

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The following words appears on the screen along with a large question mark: Why does Right to Repair matter

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We generally think that people should have a right to repair things they own…

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The screen shifts right to reveal two gloved hands repairing the inside of a mobile phone with a sharp instrument.

The hands disappear and the assembled mobile phone drops from the top into the screen. On the phone screen, two ungloved hands appear holding a phone and tools.

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or take them to a repairer they choose.

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An image of store fronts emerges from the bottom of the screen and becomes larger.

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But why is right to repair important?

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The screen shifts left. A person stands with arms out and open; to his left, the word “why” appears; to his right, a question mark in a circle appears.

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It’s a bigger issue than most of us realize. The impacts echo across the economy, the environment, and the rights of consumers.

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The screen shifts right. A map appears, across the screen on which the following words are written: It’s a big issue!

The words disappear and the following words emerge one at a time and then disappear: economy (with a dollar sign), environment (with a leaf), and consumers (with a thumbs up).

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When independent businesses can access the tools, information, and parts they need…

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A person appears along with images to illustrate tools, information and parts.

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…they can compete for your business.

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A man works under the hood of a car. The following words appear across his image: they can compete for your business.

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Stronger competition in business equals stronger participation in the economy.

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An image emerges from the bottom of the screen of nine businesses of various sizes. The following words appear: Stronger competition = Stronger economy.

A dollar sign appears above each of the nine businesses.

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If you have a product that doesn’t quite work anymore, you can avoid having to replace it prematurely.

Right to repair lets you extend the lifespan of things you own…

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A person holds a cracked mobile phone. They give a thumbs up sign and the following words appear: avoid replacing prematurely.

The person shifts left out of the screen and a green bar slides from right to left with the numbers 1 to 9.

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…preventing unnecessary waste in our environment and saving you money.

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The following text appears on the left side of the screen: Prevent unnecessary waste.

A pile of trash appears below those words.

On the right side of the screen, a person tucks their phone/wallet into their back pocket. A dollar sign appears on the person’s pocket.

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Consumers deserve choice in how much they want to pay, quality of service and convenience, too.

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The screen shifts right, and a head and shoulders shot of a person appears along with the words: consumer choice.

Images of a dollar sign, thumbs up and clock appear, illustrating price, quality of service and convenience.

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And for those who are rural, remote, or low-income?

This access and choice can make all the difference.

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The screen shifts right. A farmhouse appears along with the following words: rural/remote/low-income.

The image zooms out to reveal a cow in the left-hand corner of the screen.

The images disappear and the screen turns green.

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The economy and consumers—two big reasons why Right to Repair is really important!

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A person with a thumbs up appears with two children to their side. A total of five dollar signs appear on the screen.

The following words appear on the screen: Right to Repair.

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Competition Bureau

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Canada Wordmark

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Music

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The following words appear on the screen: How to Make Right to Repair Work for You

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Did you know Competition Bureau of Canada is taking action to promote Right to Repair?

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A megaphone appears against a blue background of tools. Red lines emerge from the megaphone to denote sound. The megaphone turns slowly, and the following words appear: Right to Repair.

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That’s because this action will provide great benefits to Canadian consumers, businesses, and the economy.

We advocate for rules and regulations that will make competition work for you.

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An outstretched hand appears, holding a range of household appliances. The following words appear: provide great benefits.

A motion graphic of consumers walking appears behind the outstretched hand.

The images disappear and a hand holds a gavel which moves up and almost out of the screen. It then moves down to the bottom of the screen and the following text appears: advocate for rules and regulations.

As the gavel lifts, on the right, a standing person appears, along with the following text: make competition work for you!

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You’ve probably heard of copyright protection regulations.

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A large copyright logo appears on the screen.

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And they have an important role to play.

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The copyright symbol becomes smaller and moves to the top left of the screen. The following text appears: They Have an Important Role to Play.

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But they shouldn’t create unnecessary barriers to getting things repaired.

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The following words appear: Shouldn’t create unnecessary barriers.A brick wall moves up the left side of the screen.

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So what is the Competition Bureau doing to help?

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The screen shows the brick wall and to the right, a large question mark in a circle.

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Our job is to advocate to regulators and policymakers.

We make sure regulations don’t create unnecessary barriers to competition including access to parts, tools, and information.

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The screen shifts right. A person, facing left, holds a megaphone with a motion graphic of sound waves coming from it. The brick wall appears behind her, to the right.

The woman shifts out of the screen.

The brick wall appears on the left side of the screen. A person holds a sledgehammer. The following text appears: make sure regulations don’t create unnecessary barriers.

The person breaks the brick wall with the sledgehammer.

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But what about you, the consumer?

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The screen shifts left. A person leans on a washing machine. They hold an instruction manual. The following words appear: What about the consumer?

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Before purchasing, find answers to these important questions:

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The screen shifts left. A man, holding a credit card, sits in front of a laptop. The following words appear: Find answers.

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What’s the useful life of this product?

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The person disappears and the laptop floats up to the top left of the screen. The following words appear: What’s the useful life of this product?

A bar with the numbers 1 to 6 slides across the screen, then the images disappear.

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Are there restrictions on who can repair this for me?

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An image of storefronts appears with the following text: Are there restrictions on who can repair this?

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How available are the tools, information, parts, and service?

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The screen shifts left. A closed vault appears. It opens to reveal parts inside. The following text appears: how available are the tools, information, parts and service?

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Answers to these help make Right to Repair work for you!

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The screen shifts left. An image of a man showing a thumbs up appears with the following words: Right to Repair.

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Competition Bureau

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Canada Wordmark

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(Music underscore)

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Competition Bureau Canada presents

Compliance Case Files

Prevent Market Abuse

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When a dominant business abuses its power, it can cause a lot of damage. By putting its thumb on the scale, a large, powerful firm can block competition and distort the market.

The Competition Bureau works to “prevent market abuse” and make sure that businesses like yours can compete on a level playing field.

Let’s look at a past case, involving the Toronto Real Estate Board.

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An index line, comprised of various peaks with the largest peak in the middle. The large peak begins to jostle, causing friction and reducing the smaller peaks or squeezing them out of frame entirely.

Two additional stat-based VISUALS then flank the graph, showcasing the changes to both total competitors/suppliers and market/product prices.

On the words “level playing field,” the large peak levels out until a uniform line is created.

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The Toronto Real Estate Board is Canada’s largest local real estate board.

It serves 66,000 licensed real estate brokers and salespeople in the Greater Toronto Area.

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The level line MORPHS into a MAP of the Greater Toronto Area. House icons or real estate signs pop up all over it.

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A number of these professionals accused the Board of limiting the use of important information found in the Multiple Listing Service, or MLS.

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MAP
Icons and signs disappear from the map.

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The MLS is a database of property listings and historical sales data.

It is essential for buying and selling real estate.

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A person sitting before a computer, then zoom in on screen image of Multiple Listing Service.

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The Board allowed its members to share vital data with customers by hand, email, and fax.

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Icons for data traveling from hand to hand, via email and by fax machine.

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But it did not allow them to share certain data online, through virtual office websites…

… sites that would have allowed the public to do more research on their own.

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Return to person sitting before a computer, then zooming back in on the screen image representing the Multiple Listing Service.

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The Board also excluded this vital data from the information it provided to members through an electronic data feed.

The Board’s actions prevented innovative real estate brokerages from offering new, data-driven digital services to their clients, which could have threatened bricks-and-mortar business models.

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Computer screen displaying a house. The screen flashes red, with the words “Restricted information” overlayed on top.

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This conduct is known as abuse of dominance.

Abuse of dominance occurs when the largest or most powerful businesses in a market purposefully harms competitors or the competitive process.

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Abuse of dominance

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There are a few different categories of abusive conduct.

Predatory abuse happens when a dominant business intentionally takes short-term revenue losses with the goal of eliminating competitors….

…for example, by slashing prices—only to increase them once its competitors are out of business.

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1. Predatory

Two price tags rising from the bottom of the screen, with both prices rising up rapidly to $109. The two price tags are then joined by two more, also rapidly rising to $109. Then, the price on the leftmost sticker goes down to $88, and the other three go down as well; one down to $100, another down to $90, and the last down to $95.

Further, the total number of price tags on screen continues to suggest that competitors are leaving the market.

After the other price tags have all been “eliminated” the sole remaining price tag, that had gone as low as $65, shoots up to $135.

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Exclusionary abuse happens when a dominant business prevents another business from operating in a market….

…say, by having customers sign exclusive contracts to prevent rivals from getting enough business.

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2. Exclusionary

Show one person pointing to a signature line on a contract.

Visual continues to use tags and bar graphs to express price and market share. Some graphs have arrows indicating their growth upwards, but others are blocked from growing.

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Disciplinary abuse happens when a dominant business punishes a competitor.

This could include starting a price war to punish a competitor for marking down their goods or services.

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3. Disciplinary

Re-use of the $88 sticker, only this time, it’s joined by a twin and the prices rival.

Bars showcase prices rivaling closely as the prices fluctuate.

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Then, there’s abuse intended to make other companies want to compete less, which can result in fewer options for consumers.

This can occur when a dominant business tells a smaller retailer carrying its products that it can’t offer them at a lower price than other retailers.

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4. Dampen incentives to compete

Three store windows side by side, with one shop being larger than the other two. Each shop is displaying the same product and advertised price. One shop’s price goes down, but then, a silhouette inside the larger shop appears to call the smaller shop on the phone, after which, the price in the smaller shop goes back up.

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The effects of abuse of dominance can be widespread.

In any form, it hurts everyone.

It hikes costs and prices.

Lowers consumer choice.

Stifles innovation.

Slows growth.

And weakens the economy.

Our main goal is to stop anti-competitive conduct and bring real competition back to the market...

…so that businesses like yours can have a fair shake and compete in an arena of equal opportunity.

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Image of a person looking at a pair of shoes priced at $60. The price on the shoes then suddenly goes up to $100. The person then looks downcast.

5 product logos. 2 or 3 disappear to represent lower consumer choice.

An old phone beside a cell phone. The newer product gets an X through it.

Icons representing stores begin to fade until only a few remain.

A dollar sign deflates.

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The financial consequences for abuse of dominance can be significant.

They can amount to millions of dollars.

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A table is shown.

HEADER IN CENTRE OF TABLE: Maximum monetary penalties:

SUB-HEADER TEXT IN MIDDLE OF TABLE: The greater of...

TEXT ON LEFT SIDE OF TABLE:

• $10 million
• (or $15 million for further conduct)

TEXT ON RIGHT SIDE OF TABLE:

• 3 x value of benefit, or
• 3% of annual worldwide gross revenues if the benefit cannot reasonably be determined

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If abuse of dominance is affecting your business, know that you’re not alone.

Take action.

Share information with us about what you’re seeing in the market. That way, we’ll be better equipped to protect and promote competition.

Go to our website and fill out an online complaint form.

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Go to our website to share any relevant information or concerns. competitionbureau.gc.ca

Computer monitor displaying a website, with someone typing “Complaint form” in the search bar.

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We follow strict confidentiality rules. Any information you share with us will be protected under the law.

We take your tips seriously. We will take action when abusive behaviour threatens the Canadian market.

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SPLIT SCREEN of phone call between a business owner and a Competition Bureau official.

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And our actions can have an impact.

After the Toronto Real Estate Board case ended, some small-and medium-sized businesses entered the market with new services.

Consumers got access to richer data, empowering them to make more informed decisions when setting prices and making offers.

The case helped open the door to innovation across the Canadian real estate market.

Scene 18: Visual

Return to the map of the GTA with houses popping up all over it….

…then, develops even more houses.

PULLBACK TO REVEAL the person from earlier (SCENE 5) watching it. Their screen now reads: “Information now accessible”

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Together, we can prevent market abuse.

Scene 19: Visual

Prevent market abuse.
competitionbureau.gc.ca