Competition Bureau
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What Is the Competition Bureau?The Competition Bureau is an independent law enforcement agency responsible for the administration and enforcement of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. Its role is to promote and maintain fair competition so that Canadians can benefit from competitive prices, product choice and quality services. Headed by the Commissioner of Competition, the organization investigates anti-competitive practices and promotes compliance with the laws under its jurisdiction. What Is the Competition Act?The Competition Act is a federal law governing most business conduct in Canada. It contains both criminal and civil provisions aimed at preventing anti-competitive practices in the marketplace. 
What Is Bid-rigging?Have you ever wondered why two or more suppliers have submitted identical bids on one or more of your tenders? Are you curious as to why a particular supplier always submits the highest bid on your projects and the lowest one on someone else's projects? Have you ever wondered why some of your tenders are bid at amounts much higher than the cost you estimated? Have you ever questioned why some likely suppliers bid on some projects and not on others? Are you aware of discussions among your suppliers about pricing or who should win a particular contract? If you answered "yes" to any of these questions, you may be the victim of bid-rigging, which is a criminal offence under the Competition Act. Bid-rigging is an agreement where, in response to a call or request for bids or tenders, one or more bidders agree not to submit a bid, or two or more bidders agree to submit bids that have been prearranged among themselves. Bid-rigging is a serious crime that eliminates competition among your suppliers, increasing your costs and harming your ability to compete. Whether this occurs on government projects or in the private sector, these increased costs are ultimately passed on to the public. What Are the Possible Penalties?Bid-rigging is a criminal offence under Canada's Competition Act. Firms and individuals convicted of bid-rigging face fines at the discretion of the court or imprisonment for up to five years. The offence of bid-rigging is committed only if the parties to the agreement do not make the agreement known to the person requesting the bids or tenders before such bids or tenders are made. How Does It Work?While bid-rigging schemes are limited only by the imagination of those involved, there are four common types of agreements that result in a pre-selected supplier winning the contract.
What Should I Do If I Suspect Bid-rigging?If you suspect you're a victim of bid-rigging or have information about a bid-rigging scheme, contact the Competition Bureau. The Bureau conducts its investigations in private and keeps confidential the identity of the source and the information provided. However, if someone has important evidence about an offence under the Competition Act, that person may be asked to testify in court. How Can I Discourage Bid-rigging?The Bureau has developed a document called Certificate of Independent Bid Determination for use by persons calling for bids, tenders or quotations. The certificate can deter bid-rigging by requiring bidders to disclose to the person calling for the bids all material facts about any communications and arrangements they have entered into with competitors regarding the tender call. For further information about the certificate, contact the Competition Bureau.
Cat. No. RG52-29/3-2003 
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Created: 2003-02-11 Updated: 2005-04-27 |
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