Competition Bureau
ToolsRelated topicsResourcesBringing Down the Barriers to Effective Enforcement on Cross-Border Health FraudOTTAWA, June 19, 2003 -- Scammers who hide behind international borders to pitch miracle cures to vulnerable consumers in other jurisdictions should be feeling somewhat more vulnerable lately. In announcing Operation Cure-All (http://www.ftc.gov/opa/2003/ 06/seasilver.htm) today in Washington, DC, officials of the Federal Trade Commission and the Food and Drug Administration emphasized the importance of their relationship with the Competition Bureau and other agencies in Canada and Mexico in bringing down the barriers to effective law enforcement. Recent examples of cross-border co-operation on deceptive marketing of health-related products and services include the trilateral Canada-U.S.-Mexican action in February 2003 against an operation marketing an unproven cancer treatment over the Internet. Individual victims paid up to $15,000 (U.S.) to receive a treatment which was purported to be successful in treating cancer by exposing cells to magnetic energy. The operator’s offices were located in Canada, victims were primarily in Canada and the U.S. and the clinic where the treatment was offered was in Mexico. The Bureau searched the company’s business offices in Western Canada. A criminal investigation is ongoing in Canada. In February 2003, the Bureau led an international law enforcement effort against a Canadian telemarketing operation that targeted U.S. residents worried about the adequacy of their health-care coverage. Boiler-rooms located in the metro Toronto area, conducting promotions under the names MedPlan, Global and STF Group, allegedly used high pressure sales techniques to induce potential clients, primarily seniors, to purchase a medical discount plan and release bank account information. Funds were then withdrawn without authorization from the client. Promises of a free trial period and refund guarantees were not respected. This telemarketing operation is estimated to have grossed approximately $8 million (U.S.) in the last year. Charges have been laid under both the Competition Act and the Criminal Code against seven individuals. In tackling this operation, the Bureau had the assistance of the other members of the Toronto Strategic Partnership, which was established to combat deceptive telemarketing and other fraudulent scams that transcend borders. Members of the partnership include the Competition Bureau, the Toronto Police Service, the Ontario Provincial Police, the Ontario Ministry of Consumer and Business Services, the U.S. Federal Trade Commission and the U.S. Postal Inspection Service. The multi-jurisdictional nature of these deceptive marketing practices, particularly with the growth of the Internet, requires law enforcement organizations domestically and internationally to work in full cooperation to effectively combat the problem. One such initiative to combat these issues involves the Competition Bureau as a member of MUCH, the Mexico/U.S./Canada Health Fraud Work Group, which was established to strengthen the three countries’ ability to prevent the growing problem of cross-border health fraud. The Competition Bureau is an independent law enforcement agency that ensures all Canadians enjoy the benefits of a competitive economy, low 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, designed to improve the quality of information in the marketplace. For media enquiries, please contact: For general enquiries, please contact:
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Created: 2003-06-19 Updated: 2005-04-18 |
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