Competition Bureau Investigation Leads to Guilty Plea and Fine

OTTAWA, January 28, 2003 — Modugno-Hortibec Inc., a Quebec company specializing in the packaging and sales of garden products such as top soil and compost, pleaded guilty to five counts of false or misleading representation on the quantity of their products. The Court of Quebec imposed a $850 fine for each charge, totalling $4,250, under the Consumer Packaging Act and Labelling Act.

In May 2002, the Competition Bureau conducted a detailed inspection of five types of packing of compost and marble chips to verify the net quantity. The inspection revealed that the net quantity of a number of items packaged under the names Canadian Garden, Master Gardener and Hortibec was less than that indicated on the label. As a result, the Bureau alleged that consumers were deceived about the exact quantity of the products.

"Consumers assume that labelling is accurate so that they can make prudent choices," said Raymond Pierce, Deputy Commissioner, Competition Bureau. "When the labelling is incorrect, it's the consumers who lose."

Consumers who suspect they have been the victim of deceptive business practices or who want information on the application of the Consumer Packaging and Labelling 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 that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

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