Competition watchdog warns corporations to ‘buckle up’ for new era of enforcement
The country’s top competition watchdog is warning corporate Canada to “buckle up” for a new era of enforcement that will feature tougher merger controls, steeper financial penalties and more frequent challenges, following several rounds of changes to the Competition Act.
“Today, we have a law that is significantly stronger, one that finally addresses many of the longstanding inadequacies of the Competition Act,” Matthew Boswell, commissioner of the Competition Bureau of Canada, said in prepared remarks for a speech delivered Friday at the Canadian Bar Association Competition Fall Law Conference.
The act has gone through three rounds of amendments in the last three years, with the latest changes enacted by Parliament in June.
The most recent round strengthened the watchdog’s ability to target deceptive marketing practices such as bogus discount claims, unsupported environmental claims and drip pricing, a tactic through which fees and other charges are added to the promoted price of an item.
These changes have already played out in the Competition Tribunal’s decision last week to levy a $38.9-million fine against Cineplex Inc., for obfuscating a hidden booking fee of $1.50 for theatregoers who decided to buy their tickets online.
“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,” Boswell said. “Businesses that fail to comply with the law risk significant financial penalties.”
In addition to stiffer fines, the latest changes also give the bureau more effective merger controls. Boswell said this won’t change much for most mergers but will instead allow the watchdog more powers when a merger
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