Window coverings company pleads guilty to attempting to influence competitor’s prices

OTTAWA, November 15, 2004 - The Competition Bureau announced today that Royal Group Technologies (Quebec) Inc. was fined $200,000 after pleading guilty in the Federal Court of Canada to attempting to influence another company to maintain the price of polyvinyl chloride (PVC) window coverings such as vertical blinds and valances in 2002.

"Consumers lose when one competitor tries to influence another to raise its prices," said John Pecman, Acting Deputy Commissioner of Competition. "The Competition Bureau will continue to safeguard competition to ensure that Canadians benefit from competitive prices for goods and services."

The Bureau's investigation, which began in 2002, revealed that a former employee of RGT Quebec communicated with another company in an attempt to maintain the price at which that company would supply PVC blind slats, channel panels designed to hold vertical blind slats, and valances. RGT Quebec has cooperated fully with the Commissioner of Competition's inquiry.

Under section 61 of the Competition Act, it is a criminal offence for a businessperson to use an agreement, threat or promise to attempt to influence upward, or to discourage the reduction of, the prices charged by any other person engaged in business in Canada.

As a result of the Bureau's inquiry, RGT Quebec agreed to implement a compliance policy that will ensure the company's future business practices comply with the Competition Act.

"RGT Quebec fully cooperated with the Bureau's investigation and its willingness to address the Competition Bureau's concerns without costly litigation was an important factor in resolving this case," added Mr. Pecman.

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.

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Eric Glaude
Communications Advisor
Communications Branch
819-953-9760

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Competition Bureau
1-800-348-5358