Telemarketing Company Fined $300,000 for Deceptive Telemarketing Practices

OTTAWA, January 20, 2003 — Telemarketing company Farber Blake Corporation has pleaded guilty to one criminal charge and has been fined $300,000 for misleading consumers in Canada and New Zealand.

Farber Blake victims were contacted by telemarketers and told that they had won prizes, such as cash, a boat or a cruise in the Bahamas. However, in order to claim their prize, they were informed that they had to buy one of the company's promotional items, such as coin sets or art work. The Bureau found that the company sold these promotional items at highly inflated prices and misrepresented the nature, value and quality of both the prizes and the promotional items sold.

"Consumers should be skeptical about telemarketing offers that require payment in advance or purchase of another product before a prize or payout is awarded," said Raymond Pierce, Deputy Commissioner, Competition Bureau. "We will continue to thoroughly investigate such cases in our continued efforts to provide consumers with a marketplace that is both fair and free of deceptive business practices."

Consumers who suspect they have been the victim of deceptive telemarketing practices or who want information on the application of the Competition Act, should contact the Bureau's Information Centre at 1 800 348-5358, or visit our Web site at www.cb-bc.gc.ca.

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
1-800-348-5358