Canada’s Competition Bureau Cracks Down on Price Fixing Amid Coronavirus Pandemic

Canada’s Competition Bureau is cracking down on anyone participating in price gouging, false advertising, or scamming consumers and businesses during the coronavirus pandemic, says the commissioner of the agency in a recent announcement.

According to the Friday announcement, the bureau will “crackdown” on both individuals and companies who violated Canada’s competition laws. Violations can include deceptive marketing practices or collusion schemes with competitors that drive up the price of goods.

“As Canada responds to the COVID-19 coronavirus situation, I would like to assure Canadians that the Competition Bureau remains vigilant against potentially harmful anti-competitive conduct by those who may seek to take advantage of consumers and businesses during these extraordinary circumstances,” states a press release issued by Matthew Boswell, Commissioner of Competition.

Violation of Canada’s competition laws can carry steep fines.

For false or misleading advertising, under the civil regime, violations can carry individual penalties up to $750,000, or up to $10,000,000 for corporations. Additionally, civil violations may lead to orders to cease and desist and/or to issue public notice of the activity from a court.

Canada’s Competition Bureau may also pursue criminal charges for violations of the law. Fines for crimination violations are steep, up to $200,000. Violations may also result in prison terms extending up to 14 years.

“False or misleading representations and deceptive marketing practices can have serious economic consequences, especially when directed toward large audiences or when they take place over a long period of time,” says the bureau’s website. “They can affect both business competitors who are engaging in honest promotional efforts, and consumers.”

If Canada’s Competition Bureau establishes evidence of collusion between competing businesses to drive up prices, it can assess fines up to $25 million and even prison time of up to 14 years.

According to the agency’s website, “Advocating the benefits of a competitive marketplace is an important part of our mandate at the Competition Bureau. We participate in a wide range of activities to promote the advantages of competition and innovation for both consumers and businesses.”

False Advertising and Price Gouging During the Coronavirus Pandemic

Unfortunately, there have been several instances of businesses taking advantage of consumers during the COVID-19 outbreak.

According to CTV News, international policing force Interpol recently announced the seizure of $14 million in counterfeit, unlicensed and fake medical supplies has led to the arrest of over 100 people. Interpol investigated approximately 2,000 online ads for various illicit medical and related items, including inadequate hand sanitizers and face masks, unproven antiviral medicines, and medical devices. The agency says that it discovered 34,000 of these fake and/or unlicensed products as a result of their investigation.

According to CTV News, Ontario-based Vivify Holistic Clinic was accused by American agencies of making misleading claims about its products’ ability to treat the virus. The U.S. Food and Drug Administration and Federal Trade Commission reportedly warned the clinic about selling products with claims that they could treat the virus. For its part, Vivify says that it simply sells herbs with no advertising claims.

A number of individuals have reportedly hoarded and stockpiled hand sanitizer and other products and are now attempting to sell the items at inflated prices online. Online retailer Amazon says that it has removed half a million or more listings because of suspected price gouging.

According to the Toronto Star, a Vancouver man and woman bragged about making $30,000 in profits by hoarding and reselling antibacterial wipes and cleaners on Amazon. Amazon suspended their account as a result.

Global News reports that a family was caught selling face masks in a city park for $20 a mask or $40 a box, drawing the ire of the city’s mayor. Medical providers say that the hoarding of medical supplies is directly affecting the ability of hospitals and medical facilities to obtain such products. They are urging the public to stop and leave these vital resources for those on the front lines of the epidemic.

“We encourage anyone with information about potential collusion, false or misleading advertising or other forms of deceptive marketing to contact the Bureau,” states the press release issued by the commissioner of Canada’s Competition Bureau. “We will do everything in our power to crack down on these and any other anti-competitive activities in order to protect Canadians.

Consumers who believe that an individual or business is violating Canada’s competition laws can make a report on Canada’s Competition Bureau’s website.

Have you noticed deceptive advertising, price gouging, or other schemes related to the COVID-19 outbreak? Tell us what happened in the comment section below!

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