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ToolsRelated topicsResourcesRestricting the supply and use of products
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. ![]() When a Company Uses Restrictive Practices in the MarketplaceRestrictive practices, such as exclusive dealing, tied-selling and market restriction, can be cause for concern under the Competition Act. These types of restrictions may exist in franchise agreements, distribution relationships, dealer agreements or other similar relationships. However, not all restrictive practices are harmful to competition. In some situations these practices may enhance the distribution of a product to the benefit of users. If you feel your ability to compete is being harmed by the restrictive conduct of a major supplier or suppliers, there may be some relief available under the exclusive dealing, tied-selling and market restriction provisions of the Competition Act. What Are Exclusive Dealing, Tied-selling and Market Restriction?
When Does the Competition Act Apply?The exclusive dealing, tied-selling and market restriction sections of the Competition Act may apply when the following conditions are met:
These sections of the Competition Act may not apply to major suppliers who make temporary exclusive dealing arrangements or who might restrict the supply of a product to a particular market to promote a new supplier or product. The Act might not apply to a supplier requiring a customer to buy certain products together because of the technological relationship between such products, or to financial institutions imposing tied-selling arrangements to better secure a loan. Furthermore, the Act does not apply to such conduct practised between or among affiliated companies. What Happens After I Make a Complaint?Bureau staff will ask about your situation and market conditions to check whether the required conditions have been met. If they have, Bureau officers will begin confidential interviews and a review of records, documents and other sources of information. The Bureau can also apply to the courts for subpoenas or use other compulsory means to continue its investigation. 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 Act, that person may be asked to testify in court. How Does the Competition Bureau Resolve This Type of Complaint?Where appropriate, the Commissioner will open discussions to obtain voluntary compliance with the law. Sometimes, this is all the action needed to correct the situation. A more formal solution would involve the registration of a consent agreement with the Competition Tribunal when all parties agree to a solution that will restore competition in the marketplace. The Competition Tribunal is like a court, chaired by a judge and independent of any government department. If voluntary compliance cannot be achieved, the Commissioner may file an application before the Competition Tribunal for an order to remedy the situation. The Tribunal has a number of remedies at its disposal to overcome the effects of restrictive practices and restore competition. The most common is an order that requires the practice to stop. Private Access to the Competition TribunalThe Competition Act allows a person to apply directly to the Competition Tribunal for a hearing when it believes that the action of a supplier meet all the requirements under the exclusive dealing, tied-selling or market restriction provisions.
Cat. No. RG52-29/11-2003 ![]() |