Four Companies Agree to Pay a Fine of $725,000 for Engaging in Deceptive Telemarketing Activities

MONTREAL, June 16, 2009 — The Competition Bureau announced today that four companies have pleaded guilty to deceptive telemarketing charges involving the sale of business directories and were fined $725,000.

In addition, the Superior Court of Quebec, Criminal Division, has prohibited Bianca Rosa Pazzano and Darren Johnston, two individuals who operated these companies, from engaging in telemarketing activities related to business directories for a period of five years. The consent prohibition orders were issued under the Competition Act. As well, both individuals are required to inform the Bureau of any future activities related to representations made to the public.

“The Bureau is dedicated to eliminating deceptive telemarketing activities,” said Andrea Rosen, Deputy Commissioner of Competition. “This type of telemarketing is illegal and punishable under the Act, and the Bureau’s ongoing efforts to crack down on any company or person involved in deceptive telemarketing scams remain a priority.”

The four companies are Infogroup Data Inc., Allegiance Publishing Inc., 2957647 Canada Inc. and 3433587 Canada Inc.

This decision follows an investigation conducted by the Bureau into the promotion and sale of business directories over the telephone. The companies being investigated did not give all the required information and/or made false representations in a material respect.

Recognizing the seriousness of deceptive telemarketing, on June 2, 2009, the Bureau launched Operation Mirage, a campaign designed to combat business directories scams, targeting 50 locations in the greater Montreal area. This action was conducted under the newly amended Competition Act, which allows for significantly higher penalties for those convicted of criminal telemarketing offences.

For further information on Operation Mirage and to learn more about how to protect yourself against fraud, please visit the Bureau’s Web site at www.competitionbureau.gc.ca.

The Competition Bureau is an independent law enforcement agency that contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

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