Phone Directories Company Consents to Order to Refrain from Making Misleading Representations

OTTAWA, May 10, 2002 — The Commissioner of Competition filed a consent order with the Competition Tribunal today which requires Phone Directories Company Inc. to refrain from making false or misleading representations in connection with the sale of its directories.

"Small and medium enterprises in particular have tight advertising budgets and they need to realize value for every dollar they spend on advertising," said Raymond Pierce, Deputy Commissioner of Competition, Fair Business Practices Branch. "The measures outlined in the consent order will benefit consumers and businesses alike in British Columbia."

Business owners in the Kamloops and Okanagan Valley areas of British Columbia had complained that the U.S.-based company, which operates in B.C. as Western Phone Directories, failed to deliver on promises concerning publication dates, the number of copies to be distributed, and the area of distribution.

Under the terms of the consent order, Phone Directories Company Inc. has agreed not to make representations by any means, including via the Internet, which are false or misleading, including those regarding:

• the number of telephone directories to be published for any given geographic area;
• the time period in which any given telephone directory will be published and distributed;
• the geographic area over which any given telephone directory will be distributed; and
• the density of distribution of any given telephone directory.

In addition, pursuant to the consent order, Phone Directories Inc. has paid a $5,000 administrative penalty. The order will remain in force for 10 years.

The company began promoting its directories in central B.C. in 1998. The Bureau began receiving complaints from business owners in the area in 2000, and investigated the matter and initiated a formal inquiry in August, 2001.

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)