Competition Bureau
ToolsRelated topicsResourcesCompetition Bureau investigation leads to guilty plea on cross-border deceptive telemarketingOTTAWA, Ontario, March 9, 2004 — A Competition Bureau investigation has resulted in a guilty plea from an Ontario corporation that targeted U.S. consumers using deceptive telemarketing practices. Medical Discount Inc. (Canada) of Toronto, Ontario was fined $125,000 and received a four-year prohibition banning them from engaging or participating in, or assisting others in any activity involving the sale or offer for sale of health-care discount programs. Medical Discount Inc. (Canada) was associated with nine Ontario corporations in the promotion of discount cards under the names MedPlan and Global. The corporations are STF Group Inc., Chembe Management Inc., Thunderchild Consulting Inc., SMAKK Consulting Inc., 1108114 Ontario Inc., Great Sailing Management Inc., GTCQ Inc., 487948 Ontario Limited, 1349927 Ontario Inc., and one federally incorporated corporation Q-Prompt Inc. The directors of these corporations are Allan Shiell, Julian Shiell, Chris Quilliam, Sean Zaichick, Cory Besser, Nicholas Bridges, and Alex Korn. The corporations and directors are also subject to the prohibition order. Between March 2001 and January 2003, telemarketers used high pressure sales techniques to induce potential clients, residents of the U.S., to purchase a medical discount plan and release bank account information. Funds were then withdrawn without authorization from the client. In addition, promises of a free trial period and refund conditions were not always respected. The Bureau received more than 500 complaints from other law enforcement and government agencies including the PhoneBusters National Call Centre, the U.S. Federal Trade Commission (FTC), various Better Business Bureaus and offices of Attorneys General across the U.S. "This case again demonstrates the value of cooperation among domestic and foreign law enforcement agencies to stop consumer fraud and deception," said Raymond Pierce, Deputy Commissioner of Competition. "The Competition Bureau and its partners will actively pursue deceptive telemarketers regardless of where the victims are located." The Competition Bureau developed this case in cooperation with the FTC. The FTC filed a separate consumer protection action in the United States, which is ongoing. The Bureau appreciates the assistance of the FTC and the other members of the Toronto Strategic Partnership, including the Toronto Police Service, the Ontario Provincial Police, the Ministry of Consumer and Business Services, the U.S. Postal Inspection Service and the Ohio Attorney General's Office. Consumers who suspect they have been a victim of deceptive telemarketing are encouraged to contact the Bureau's Information Centre at 1-800-348-5358, or Phonebusters' National Call Centre at 1-888-495-8501. The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. For media enquiries, please contact:Maureen McGrath For general enquiries, please contact:Information Centre
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Created: 2004-03-09 Updated: 2005-04-13 |
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