Proposed Business Conduct

A company that distributes and sells food-related items sought a written opinion in November 2008 on whether a current multi-level marketing plan raises concerns under the Competition Act.

The Competition Bureau declined to issue an opinion because the multi-level marketing plan appeared to be operating in all Canadian provinces and therefore was no longer considered to be “proposed conduct.”

The Bureau issues opinions on proposed business conduct regarding multi-level marketing plans. Each proposal is reviewed on a case-by-case basis in situations where companies are not operating in all provinces and territories across Canada. Specifically, the Bureau may satisfy a request for an opinion for a company that is not operating in any of the four following provinces which require a positive opinion prior to the issuance of a direct sellers license: Alberta, Saskatchewan, Manitoba, and Nova Scotia.

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