Mail order companies charged for deceptive marketing practices

OTTAWA, March 14, 2005 - The Competition Bureau announced today that criminal charges have been laid against JD Marvel Products Inc., CDN MailOrder Exchange Inc. (CMOE) and their President, John Dragan, for engaging in deceptive marketing practices targeting Canadian and U.S. residents, mainly seniors, contrary to section 52 (1) of the Competition Act.

JD Marvel and CMOE offered a wide range of consumer products through mail order, advertising inserts, coupons in discount envelopes and magazines, catalogues and the Internet.

The Bureau alleges that products were not delivered in the advertised time period of two to five weeks. In some cases, complainants stated that they never received the products ordered or received them after several months of waiting. The Bureau also alleges that consumers were misled about the performance of some of the products sold.

The Competition Bureau received a total of 5,700 complaints from other law enforcement and government agencies, including the Office de la protection du consommateur du Québec, the U.S. Federal Trade Commission, the Attorney General's Office of the United States, and a variety of business ethics offices.

"The Bureau is very pleased with the assistance received during our investigation from a number of law enforcement and government agencies," said Raymond Pierce, Deputy Commissioner. "The Bureau is a member of several partnerships both in Canada and abroad, in an effort to enhance cooperation and coordination of law enforcement activities and to exchange information in the fight against deceptive marketing and anti-competitive activities."

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

For media enquiries, please contact:

Maureen McGrath
Senior Communications Advisor
Communications Branch
819-953-8982, or 613-296-2187 (cell)

For general enquiries, please contact:

Information Centre
Competition Bureau
819-997-4282
1-800-348-5358