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

Full Document:  

Act current to 2024-03-06 and last amended on 2023-12-15. Previous Versions

PART VII.1Deceptive Marketing Practices (continued)

Administrative Remedies (continued)

Marginal note:Interim injunction

  •  (1) If, on application by the Commissioner, a court finds a strong prima facie case that a person is engaging in or has engaged in conduct that is reviewable under paragraph 74.01(1)(a), and the court is satisfied that the person owns or has possession or control of articles within the jurisdiction of the court and is disposing of or is likely to dispose of them by any means, and that the disposal of the articles will substantially impair the enforceability of an order made under paragraph 74.1(1)(d), the court may issue an interim injunction forbidding the person or any other person from disposing of or otherwise dealing with the articles, other than in the manner and on the terms specified in the injunction.

  • Marginal note:Statement to be included

    (2) Any application for an injunction under subsection (1) shall include a statement that the Commissioner has applied for an order under paragraph 74.1(1)(d), or that the Commissioner intends to apply for an order under that paragraph if the Commissioner applies for an order under paragraph 74.1(1)(a).

  • Marginal note:Duration

    (3) Subject to subsection (6), the injunction has effect, or may be extended on application by the Commissioner, for any period that the court considers sufficient to meet the circumstances of the case.

  • Marginal note:Notice of application by Commissioner

    (4) Subject to subsection (5), at least 48 hours’ notice of an application referred to in subsection (1) or (3) shall be given by or on behalf of the Commissioner to the person in respect of whom the injunction or extension is sought.

  • Marginal note:Ex parte application

    (5) The court may proceed ex parte with an application made under subsection (1) if it is satisfied that subsection (4) cannot reasonably be complied with or where the urgency of the situation is such that service of the notice in accordance with subsection (4) might defeat the purpose of the injunction or would otherwise not be in the public interest.

  • Marginal note:Duration of ex parte injunction

    (6) An injunction issued ex parte has effect for the period that is specified in it, not exceeding seven days unless, on further application made on notice as provided in subsection (4), the court extends the injunction for any additional period that it considers sufficient.

  • Marginal note:Submissions to set aside

    (7) On application of the person against whom an ex parte injunction is made, the court may make an order setting aside the injunction or varying it subject to any conditions that it considers appropriate.

  • Marginal note:Duty of Commissioner

    (8) If an injunction issued under this section is in effect, the Commissioner shall proceed as expeditiously as possible to complete any inquiry under section 10 arising out of the conduct in respect of which the injunction was issued.

  • Marginal note:Definitions

    (9) The following definitions apply in this section.

    dispose

    dispose, in relation to an article, includes removing it from the jurisdiction of the court, depleting its value, leasing it to another person or creating any security interest in it. (disposer)

    security interest

    security interest means any interest or right in property that secures payment or performance of an obligation and includes an interest or right created by or arising out of a debenture, mortgage, hypothec, lien, pledge, charge, security, deemed or actual trust, assignment or encumbrance of any kind whatever, however or whenever arising, created, deemed to arise or otherwise provided for. (garantie)

  • 2009, c. 2, s. 425

Marginal note:Consent agreement

  •  (1) The Commissioner and a person in respect of whom the Commissioner has applied or may apply for an order under this Part may sign a consent agreement.

  • Marginal note:Terms of consent agreement

    (2) The consent agreement shall be based on terms that could be the subject of an order of a court against that person, and may include other terms, whether or not they could be imposed by the court.

  • Marginal note:Registration

    (3) The consent agreement may be filed with the court for immediate registration.

  • Marginal note:Effect of registration

    (4) Upon registration of the consent agreement, the proceedings, if any, are terminated and the consent agreement has the same force and effect, and proceedings may be taken, as if it were an order of the court.

  • 1999, c. 2, s. 22
  • 2002, c. 16, s. 11

Marginal note:Rescission or variation of consent agreement or order

 The court may rescind or vary a consent agreement that it has registered or an order that it has made under this Part, on application by the Commissioner or the person who consented to the agreement, or the person against whom the order was made, if the court finds that

  • (a) the circumstances that led to the making of the agreement or order have changed and, in the circumstances that exist at the time the application is made, the agreement or order would not have been made or would have been ineffective in achieving its intended purpose; or

  • (b) the Commissioner and the person who consented to the agreement have consented to an alternative agreement or the Commissioner and the person against whom the order was made have consented to an alternative order.

  • 1999, c. 2, s. 22
  • 2002, c. 16, s. 11

Marginal note:Evidence

 In determining whether or not to make an order under this Part, the court shall not exclude from consideration any evidence by reason only that it might be evidence in respect of an offence under this Act or in respect of which another order could be made by the court under this Act.

  • 1999, c. 2, s. 22

Marginal note:Unpaid monetary penalty

 The amount of an administrative monetary penalty imposed on a person under paragraph 74.1(1)(c) is a debt due to Her Majesty in right of Canada and may be recovered as such from that person in a court of competent jurisdiction.

  • 1999, c. 2, s. 22

Marginal note:Where proceedings commenced under section 52 or 52.01

 No application may be made under this Part against a person on the basis of facts that are the same or substantially the same as the facts on the basis of which proceedings have been commenced against that person under section 52 or 52.01.

  • 1999, c. 2, s. 22
  • 2010, c. 23, s. 81

Rules of Procedure

Marginal note:Power of courts

 The rules committee of the Federal Court, or a superior court of a province, may make rules respecting the procedure for the disposition of applications by that court under this Part.

  • 1999, c. 2, s. 22

Appeals

Marginal note:Appeal to Federal Court of Appeal

  •  (1) An appeal may be brought in the Federal Court of Appeal from any decision or order made under this Part, or from a refusal to make an order, by the Tribunal or the Federal Court.

  • Marginal note:Appeal to provincial court of appeal

    (2) An appeal may be brought in the court of appeal of a province from any decision or order made under this Part, or from a refusal to make an order, by a superior court of the province.

  • Marginal note:Disposition of appeal

    (3) Where the Federal Court of Appeal or the court of appeal of the province allows an appeal under this section, it may quash the decision or order appealed from, refer the matter back to the court appealed from or make any decision or order that, in its opinion, that court should have made.

  • 1999, c. 2, s. 22
  • 2002, c. 8, s. 183

Marginal note:Appeal on question of fact

 An appeal on a question of fact from a decision or order made under this Part may be brought only with the leave of the Federal Court of Appeal or the court of appeal of the province, as the case may be.

  • 1999, c. 2, s. 22

PART VIIIMatters Reviewable by Tribunal

Restrictive Trade Practices

Refusal to Deal

Marginal note:Jurisdiction of Tribunal where refusal to deal

  •  (1) Where, on application by the Commissioner or a person granted leave under section 103.1, the Tribunal finds that

    • (a) a person is substantially affected in his business or is precluded from carrying on business due to his inability to obtain adequate supplies of a product anywhere in a market on usual trade terms,

    • (b) the person referred to in paragraph (a) is unable to obtain adequate supplies of the product because of insufficient competition among suppliers of the product in the market,

    • (c) the person referred to in paragraph (a) is willing and able to meet the usual trade terms of the supplier or suppliers of the product,

    • (d) the product is in ample supply, and

    • (e) the refusal to deal is having or is likely to have an adverse effect on competition in a market,

    the Tribunal may order that one or more suppliers of the product in the market accept the person as a customer within a specified time on usual trade terms unless, within the specified time, in the case of an article, any customs duties on the article are removed, reduced or remitted and the effect of the removal, reduction or remission is to place the person on an equal footing with other persons who are able to obtain adequate supplies of the article in Canada.

  • Marginal note:When article is a separate product

    (2) For the purposes of this section, an article is not a separate product in a market only because it is differentiated from other articles in its class by a trademark, proprietary name or the like, unless the article so differentiated occupies such a dominant position in that market as to substantially affect the ability of a person to carry on business in that class of articles unless that person has access to the article so differentiated.

  • Marginal note:Definition of trade terms

    (3) For the purposes of this section, the expression trade terms means terms in respect of payment, units of purchase and reasonable technical and servicing requirements.

  • Marginal note:Inferences

    (4) In considering an application by a person granted leave under section 103.1, the Tribunal may not draw any inference from the fact that the Commissioner has or has not taken any action in respect of the matter raised by the application.

  • R.S., 1985, c. C-34, s. 75
  • R.S., 1985, c. 19 (2nd Supp.), s. 45
  • 1999, c. 2, s. 37
  • 2002, c. 16, s. 11.1
  • 2014, c. 20, s. 366(E)

Price Maintenance

Marginal note:Price maintenance

  •  (1) On application by the Commissioner or a person granted leave under section 103.1, the Tribunal may make an order under subsection (2) if the Tribunal finds that

    • (a) a person referred to in subsection (3) directly or indirectly

      • (i) by agreement, threat, promise or any like means, has influenced upward, or has discouraged the reduction of, the price at which the person’s customer or any other person to whom the product comes for resale supplies or offers to supply or advertises a product within Canada, or

      • (ii) has refused to supply a product to or has otherwise discriminated against any person or class of persons engaged in business in Canada because of the low pricing policy of that other person or class of persons; and

    • (b) the conduct has had, is having or is likely to have an adverse effect on competition in a market.

  • Marginal note:Order

    (2) The Tribunal may make an order prohibiting the person referred to in subsection (3) from continuing to engage in the conduct referred to in paragraph (1)(a) or requiring them to accept another person as a customer within a specified time on usual trade terms.

  • Marginal note:Persons subject to order

    (3) An order may be made under subsection (2) against a person who

    • (a) is engaged in the business of producing or supplying a product;

    • (b) extends credit by way of credit cards or is otherwise engaged in a business that relates to credit cards; or

    • (c) has the exclusive rights and privileges conferred by a patent, certificate of supplementary protection issued under the Patent Act, trademark, copyright, registered industrial design or registered integrated circuit topography.

  • Marginal note:When no order may be made

    (4) No order may be made under subsection (2) if the person referred to in subsection (3) and the customer or other person referred to in subparagraph (1)(a)(i) or (ii) are

    • (a) principal and agent or mandator and mandatary;

    • (b) an entity and an individual who controls it or affiliated entities; or

    • (c) directors, agents, mandataries, officers or employees of the same entity or of entities that are affiliated.

  • Marginal note:Suggested retail price

    (5) For the purposes of this section, a suggestion by a producer or supplier of a product of a resale price or minimum resale price for the product, however arrived at, is proof that the person to whom the suggestion is made is influenced in accordance with the suggestion, in the absence of proof that the producer or supplier, in so doing, also made it clear to the person that they were under no obligation to accept the suggestion and would in no way suffer in their business relations with the producer or supplier or with any other person if they failed to accept the suggestion.

  • Marginal note:Advertised price

    (6) For the purposes of this section, the publication by a producer or supplier of a product, other than a retailer, of an advertisement that mentions a resale price for the product is proof that the producer or supplier is influencing upward the selling price of any person to whom the product comes for resale, unless the price is expressed in a way that makes it clear to any person whose attention the advertisement comes to that the product may be sold at a lower price.

  • Marginal note:Exception

    (7) Subsections (5) and (6) do not apply to a price that is affixed or applied to a product or its package or container.

  • Marginal note:Refusal to supply

    (8) If, on application by the Commissioner or a person granted leave under section 103.1, the Tribunal finds that any person, by agreement, threat, promise or any like means, has induced a supplier, whether within or outside Canada, as a condition of doing business with the supplier, to refuse to supply a product to a particular person or class of persons because of the low pricing policy of that person or class of persons, and that the conduct of inducement has had, is having or is likely to have an adverse effect on competition in a market, the Tribunal may make an order prohibiting the person from continuing to engage in the conduct or requiring the person to do business with the supplier on usual trade terms.

  • Marginal note:Where no order may be made

    (9) No order may be made under subsection (2) in respect of conduct referred to in subparagraph (1)(a)(ii) if the Tribunal is satisfied that the person or class of persons referred to in that subparagraph, in respect of products supplied by the person referred to in subsection (3),

    • (a) was making a practice of using the products as loss leaders, that is to say, not for the purpose of making a profit on those products but for purposes of advertising;

    • (b) was making a practice of using the products not for the purpose of selling them at a profit but for the purpose of attracting customers in the hope of selling them other products;

    • (c) was making a practice of engaging in misleading advertising; or

    • (d) made a practice of not providing the level of servicing that purchasers of the products might reasonably expect.

  • Marginal note:Inferences

    (10) In considering an application by a person granted leave under section 103.1, the Tribunal may not draw any inference from the fact that the Commissioner has or has not taken any action in respect of the matter raised by the application.

  • Marginal note:Where proceedings commenced under section 45, 49, 79 or 90.1

    (11) No application may be made under this section against a person on the basis of facts that are the same or substantially the same as the facts on the basis of which

    • (a) proceedings have been commenced against that person under section 45 or 49; or

    • (b) an order against that person is sought under section 79 or 90.1.

  • Marginal note:Definition of trade terms

    (12) For the purposes of this section, trade terms means terms in respect of payment, units of purchase and reasonable technical and servicing requirements.

  • R.S., 1985, c. C-34, s. 76
  • R.S., 1985, c. 19 (2nd Supp.), s. 45
  • 1999, c. 2, s. 37
  • 2009, c. 2, s. 426
  • 2014, c. 20, s. 366(E)
  • 2017, c. 6, s. 124
  • 2018, c. 8, s. 112
 

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