Department of Justice

CANADA AND THE UNITED STATES JOIN FORCES AGAINST CROSS-BORDER TELEMARKETING FRAUD

OTTAWA , November 20, 1997-- Canada and the United States are intensifying efforts to combat cross-border telemarketing fraud that costs North Americans billions of dollars annually.

Anne McLellan, Minister of Justice and Attorney General of Canada, and Janet Reno, Attorney General of the United States, today transmitted the Report of the Binational Working Group on Telemarketing Fraud to Prime Minister Chrétien and President Clinton, respectively. Officials in both countries were requested to prepare the report following a meeting between the Prime Minister and the President last April.

Telemarketing fraud, defined as "a range of activities in which telephones are used to dishonestly deprive victims of money or property or misrepresent the true values of goods or services on offer", is a serious problem in the United States and Canada. The Report highlights the need for bilateral action on three fronts: strategic cooperation, legal collaboration, and enhanced education prevention programs. The Report examines a number of areas in which legislative changes or administrative arrangements could be used to control telemarketing fraud in both countries.

"Canada is committed not just to bringing fraudulent telemarketers to justice, but also to preventing telemarketing fraud in the first place, both in Canada and in the United States. Public education is needed to protect individuals, particularly those most vulnerable. This Report identifies ways in which we can enhance our efforts to prevent this relatively new kind of illegal activity before it starts and to punish those who are found guilty," said Minister McLellan.

As part of its commitment the Government of Canada is looking at a number of legislative options. Recent Criminal Code changes dealing with organized crime already apply to most telemarketing fraud cases. In addition, the Minister of Industry is today introducing amendments to the Competition Act in the House of Commons. The proposals address many concerns raised in the Report. For example, a new criminal, federally-prosecuted offence of "deceptive telemarketing" is proposed along with stricter disclosure requirements to help potential victims of telemarketing fraud distinguish between legitimate telemarketers and scam artists.

Other legislative options discussed in the Report include possible changes to the Canada Evidence Act and to the Extradition Act. Allowing individuals to testify in court via video-link would make for easier and less costly prosecutions while changes to the Extradition Act would improve the way the Act deals with all offenders including fraudulent telemarketers.

"This Report will help inform both the United States and Canada in determining how best to protect citizens in both countries, and I congratulate both American and Canadian officials for their work in preparing it. I now look forward to considering and acting on its recommendations," said Minister McLellan.

Copies of the Report may be obtained by calling (613) 957-4222.

Ref.:   Pierre Gratton         Chris Ram
        Minister's Office      Department of Justice
        Department of Justice  (613) 957-4713
        (613) 992-4621 

        Nicole Ladouceur
        Industry Canada
        (613) 997-1705