Canada’s Competition Bureau Warns Businesses of Tougher Enforcement

The Canadian Competition Bureau has indicated that businesses should prepare for a new era of stringent enforcement following significant amendments to the Competition Act. Matthew Boswell, the Commissioner of the Competition Bureau, emphasized the increased power of the watchdog, stating, “Today, we have a law that is significantly stronger, one that finally addresses many of the longstanding inadequacies of the Competition Act.” This message was delivered during a speech at the Canadian Bar Association Competition Fall Law Conference, as reported by the Financial Post.

The Competition Act has undergone three rounds of amendments in just three years, with the latest changes implemented by Parliament in June. These modifications bolster the Bureau’s authority, particularly in addressing deceptive marketing practices. The new provisions target misleading discount claims, unsupported environmental assertions, and “drip pricing,” where additional fees are tacked onto the initial price of products.

This shift in enforcement has already manifested in a recent decision by the Competition Tribunal, which imposed a $38.9 million fine on Cineplex Inc. for concealing a hidden booking fee of $1.50 for online ticket purchases. According to the Financial Post, Boswell remarked, “The decision sends a strong message that businesses should not engage in drip pricing and need to display their full prices upfront whenever additional fees are mandatory for consumers.” He warned that companies failing to adhere to the law could face substantial financial penalties.

The latest updates to the Competition Act not only heighten penalties but also enhance the Bureau’s merger control capabilities. Boswell clarified that while these changes may not significantly impact most mergers, they will empower the Bureau to address cases with serious competition concerns, particularly in concentrated sectors.

As corporate Canada braces for these changes, businesses are advised to ensure compliance with the revamped regulations to avoid hefty fines and scrutiny from the Competition Bureau.

Source: The Financial Post