Arrests Made and More Charges Laid Against Internet Business Directory

OTTAWA, February 5, 2001 — The Competition Bureau announced today that three individuals were arrested and charged under the misleading representation and deceptive marketing practices provisions of the Competition Act following unsolicited mailings for an Internet business directory. Two corporations were also charged for the same alleged offences. The three individuals and two corporations charged were Alan Benlolo, Elliot Benlolo, Victor Serfaty, Yellow.com Business Pages Corp., and 1421628 Ontario Limited.

The charges relate to unsolicited mailings, dated December 15, 2000, which were sent to close to a quarter of a million businesses and charities in the Province of Quebec during the month of December 2000.

Eight charges were also previously laid against these same parties in November 2000 regarding similar mail pieces that were primarily directed to businesses and charities in other parts of Canada. The first court appearance of the accused will be February 6, 2001 at the Old City Hall Court House in Toronto.

The mailings asked recipients to send a payment to a Postal Box in the Toronto area for an Internet business directory, Yellow Business Directory.com, that listed the details of their organizations. The misleading representation charges allege the mailings were made to appear as invoices or bills when they were in fact solicitations. It is also alleged that recipients were misled to think that they were already customers of the Internet business directory.

"The Bureau has now received over 4000 complaints from businesses and non-profit organizations across Canada regarding the mailings," said Raymond Pierce, Acting Deputy Commissioner, Fair Business Practices Branch. "Investigating deceptive mailings is a priority of the Bureau and will be vigorously pursued."

The Competition Bureau has, in addition, applied to the Canada Post Corporation for interim prohibitory orders prohibiting the delivery of mail addressed to or posted by the companies and persons operating the Internet business directory. As a result interim prohibitory orders were issued.

The arrests of the individuals were done with the co-operation of the Toronto Police Service. This cooperation was the result of the "Toronto Strategic Partnership" between the Toronto Police Service; the Ontario Ministry of Consumer and Commercial Relations; the Competition Bureau; the United States Federal Trade Commission's Bureau of Consumer Protection; and the United States Postal Inspection Service. These agencies support each other's law enforcement actions against persons and entities that engage in various types of deceptive marketing practices.

For more information, please contact:

Julie Hébert
Senior Advisor
Communications Directorate, Competition Bureau
819-953-4257