Competition Act (R.S.C., 1985, c. C-34)

Act current to 2017-11-20 and last amended on 2017-09-21. Previous Versions

Marginal note:Double ticketing
  •  (1) No person shall supply a product at a price that exceeds the lowest of two or more prices clearly expressed by him or on his behalf, in respect of the product in the quantity in which it is so supplied and at the time at which it is so supplied,

    • (a) on the product, its wrapper or container;

    • (b) on anything attached to, inserted in or accompanying the product, its wrapper or container or anything on which the product is mounted for display or sale; or

    • (c) on an in-store or other point-of-purchase display or advertisement.

  • Marginal note:Offence and punishment

    (2) Any person who contravenes subsection (1) is guilty of an offence and liable on summary conviction to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding one year or to both.

  • 1974-75-76, c. 76, s. 18.
Marginal note:Definition of multi-level marketing plan
  •  (1) For the purposes of this section and section 55.1, multi-level marketing plan means a plan for the supply of a product whereby a participant in the plan receives compensation for the supply of the product to another participant in the plan who, in turn, receives compensation for the supply of the same or another product to other participants in the plan.

  • Marginal note:Representations as to compensation

    (2) No person who operates or participates in a multi-level marketing plan shall make any representations relating to compensation under the plan to a prospective participant in the plan unless the representations constitute or include fair, reasonable and timely disclosure of the information within the knowledge of the person making the representations relating to

    • (a) compensation actually received by typical participants in the plan; or

    • (b) compensation likely to be received by typical participants in the plan, having regard to any relevant considerations, including

      • (i) the nature of the product, including its price and availability,

      • (ii) the nature of the relevant market for the product,

      • (iii) the nature of the plan and similar plans, and

      • (iv) whether the person who operates the plan is a corporation, partnership, sole proprietorship or other form of business organization.

  • Marginal note:Idem

    (2.1) A person who operates a multi-level marketing plan shall ensure that any representations relating to compensation under the plan that are made to a prospective participant in the plan by a participant in the plan or by a representative of the person who operates the plan constitute or include fair, reasonable and timely disclosure of the information within the knowledge of the person who operates the plan relating to

    • (a) compensation actually received by typical participants in the plan; or

    • (b) compensation likely to be received by typical participants in the plan, having regard to any relevant considerations, including those specified in paragraph (2)(b).

  • Marginal note:Due diligence defence

    (2.2) A person accused of an offence under subsection (2.1) shall not be convicted of the offence if the accused establishes that he or she took reasonable precautions and exercised due diligence to ensure

    • (a) that no representations relating to compensation under the plan were made by participants in the plan or by representatives of the accused; or

    • (b) that any representations relating to compensation under the plan that were made by participants in the plan or by representatives of the accused constituted or included fair, reasonable and timely disclosure of the information referred to in that subsection.

  • Marginal note:Offence and punishment

    (3) Any person who contravenes subsection (2) or (2.1) is guilty of an offence and liable

    • (a) on conviction on indictment, to a fine in the discretion of the court or to imprisonment for a term not exceeding five years or to both; or

    • (b) on summary conviction, to a fine not exceeding $200,000 or to imprisonment for a term not exceeding one year, or to both.

  • R.S., 1985, c. C-34, s. 55;
  • 1992, c. 14, s. 1;
  • 1999, c. 2, s. 15.

Definition of scheme of pyramid selling

  •  (1) For the purposes of this section, scheme of pyramid selling means a multi-level marketing plan whereby

    • (a) a participant in the plan gives consideration for the right to receive compensation by reason of the recruitment into the plan of another participant in the plan who gives consideration for the same right;

    • (b) a participant in the plan gives consideration, as a condition of participating in the plan, for a specified amount of the product, other than a specified amount of the product that is bought at the seller’s cost price for the purpose only of facilitating sales;

    • (c) a person knowingly supplies the product to a participant in the plan in an amount that is commercially unreasonable; or

    • (d) a participant in the plan who is supplied with the product

      • (i) does not have a buy-back guarantee that is exercisable on reasonable commercial terms or a right to return the product in saleable condition on reasonable commercial terms, or

      • (ii) is not informed of the existence of the guarantee or right and the manner in which it can be exercised.

  • Marginal note:Pyramid selling

    (2) No person shall establish, operate, advertise or promote a scheme of pyramid selling.

  • Marginal note:Offence and punishment

    (3) Any person who contravenes subsection (2) is guilty of an offence and liable

    • (a) on conviction on indictment, to a fine in the discretion of the court or to imprisonment for a term not exceeding five years or to both; or

    • (b) on summary conviction, to a fine not exceeding $200,000 or to imprisonment for a term not exceeding one year, or to both.

  • 1992, c. 14, s. 1;
  • 1999, c. 2, s. 16.

 [Repealed, 1999, c. 2, s. 17]

Marginal note:Defence

 Section 54 does not apply to a person who prints or publishes or otherwise distributes a representation or an advertisement on behalf of another person in Canada if he or she establishes that he or she obtained and recorded the name and address of that other person and accepted the representation or advertisement in good faith for printing, publishing or other distribution in the ordinary course of his or her business.

  • R.S., 1985, c. C-34, s. 60;
  • 1999, c. 2, s. 17.1.

 [Repealed, 2009, c. 2, s. 417]

Marginal note:Civil rights not affected

 Except as otherwise provided in this Part, nothing in this Part shall be construed as depriving any person of any civil right of action.

  • R.S., c. C-23, s. 39;
  • 1974-75-76, c. 76, s. 18.

PART VIIOther Offences

Offences

 [Repealed, R.S., 1985, c. 19 (2nd Supp.), s. 37]

Marginal note:Obstruction
  •  (1) No person shall in any manner impede or prevent or attempt to impede or prevent any inquiry or examination under this Act.

  • Marginal note:Offence and punishment

    (2) Every person who contravenes subsection (1) is guilty of an offence and

    • (a) liable on conviction on indictment to a fine in the discretion of the court or to imprisonment for a term not exceeding 10 years, or to both; or

    • (b) liable on summary conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding two years, or to both.

  • R.S., 1985, c. C-34, s. 64;
  • 2009, c. 2, s. 418.
Marginal note:Contravention of Part II provisions
  •  (1) Every person who, without good and sufficient cause, the proof of which lies on that person, fails to comply with an order made under section 11 and every person who contravenes subsection 15(5) or 16(2) is guilty of an offence and

    • (a) liable on conviction on indictment to a fine in the discretion of the court or to imprisonment for a term not exceeding two years, or to both; or

    • (b) liable on summary conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding two years, or to both.

  • Marginal note:Failure to supply information

    (2) Every person who, without good and sufficient cause, the proof of which lies on that person, contravenes subsection 114(1) is guilty of an offence and liable on conviction on indictment or on summary conviction to a fine not exceeding $50,000.

  • Marginal note:Destruction or alteration of records or things

    (3) Every person who destroys or alters, or causes to be destroyed or altered, any record or other thing that is required to be produced under section 11 or in respect of which a warrant is issued under section 15 is guilty of an offence and

    • (a) liable on conviction on indictment to a fine in the discretion of the court or to imprisonment for a term not exceeding 10 years, or to both; or

    • (b) liable on summary conviction to a fine not exceeding $100,000 or to imprisonment for a term not exceeding two years, or to both.

  • Marginal note:Liability of directors

    (4) Where a corporation commits an offence under this section, any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

  • R.S., 1985, c. C-34, s. 65;
  • R.S., 1985, c. 19 (2nd Supp.), s. 38;
  • 1999, c. 2, s. 18;
  • 2009, c. 2, s. 419.
 
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