Competition Act - Restraints to Competition

Act: Competition Act, R.S.C. 1985, c. 19, 2nd supp.
Regulation: Not applicable.

To Whom Does This Apply?

All businesses in Canada.

Summary

The Competition Act allows legal recourse, both criminal and civil, against individuals and companies that engage in business activities that hinder competition. It is enforced by the Commissioner of Competition and his or her staff.

The Act contains civil and criminal provisions. It is a criminal offence to engage in the following activities:

• conspiracies that unduly lessen competition (e.g. price-fixing, market-sharing);
• bid-rigging;
• price maintenance;
• refusal to supply due to a low pricing policy;
• predatory pricing;
• price discrimination;
• misleading advertising.

An investigation of these activities by the Commissioner of Competition may result in the case being referred to the Attorney General for possible criminal prosecution. If found guilty, a company may be fined an amount ranging from a few thousand dollars to more than a million dollars, depending on the nature and severity of the offence. Individuals may also receive a jail sentence. Investigations may be resolved through alternative case resolution techniques.

Individuals and businesses that have suffered losses or damages may sue those who have violated the criminal provisions of the Act or have failed to comply with an order of the Competition Tribunal or a court. There is a two-year limitation period for filing a private action under the Act.

The following are matters that may be subject to an application by the Commissioner to the Competition Tribunal under the legislation:

• mergers that prevent or lessen competition substantially;
• abuse of a dominant position (monopoly);
• exclusive-dealing, tied-selling and market restriction;
• refusal to deal;
• delivered-pricing;
• consignment-selling.

Complaints about alleged criminal offences or reviewable matters may be made in writing, by telephone, by fax, by e-mail and through the Web. A large number of complaints from consumers and the business community are received each year, although not all complaints will be investigated.

The Competition Bureau provides advice about the status of proposed business activities under the Act. A number of publications that explain specific provisions of the Act are also available. The Bureau now has information and a number of documents on-line.

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

New Brunswick Contact(s):
See National Contact.

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National Contact(s):
THIS CONTACT SERVES ALL REGIONS
Information Centre
Competition Bureau
Phase 1, Place du Portage
50 Victoria Street
Gatineau, Quebec  K1A 0C9
Telephone: 819-997-4282
Fax: 819-997-0324
Toll-free (information): 1-800-348-5358
TTY Toll-free (hearing impaired): 1-800-642-3844
E-mail: compbureau@cb-bc.gc.ca
Web site: http://www.competitionbureau.gc.ca/