Reaching an agreement with competitors

What Is Conspiracy?

When business competitors agree:

• on the prices that they will charge their customers;
• not to compete for certain customers;
• not to compete in a particular product or geographic market;
• to restrict the output or supply of a product; or
• to prevent or impede other businesses from competing in a market;

they may be committing a criminal offence known as conspiracy, under the Competition Act.

I Have Never Reached an Agreement with My Competitors, So How Does Conspiracy Affect Me and My Business?

A conspiracy scheme prevents you from reaping the benefits of a competitive marketplace, benefits that include lower prices and product choices. If your suppliers are conspiring, you, as the victim of a conspiracy scheme, are not as profitable as you could be.

I Have Been Involved in a Conspiracy with My Competitors. What Can I Do?

If you bring information to the Bureau at an early stage, the Director of Public Prosecutions, upon the recommendation of the Bureau, may grant you and your company an immunity from future prosecution. Further information on our Immunity Program may be found on our Web site.

What Are the Possible Penalties?

• Penalties for conspiracy include fines of up to $10 million, imprisonment for up to five years, or both. (The maximum fine will increase to $25 million and the maximum term of imprisonment will increase to fourteen years on March 12, 2010).
• Courts can also impose orders to prevent the parties to a conspiracy from continuing or repeating the offence.
• Customers who have lost money as a result of the conspiracy may sue the convicted parties for damages.

Remember that individuals as well as companies can be charged under the conspiracy provisions of the Competition Act.

What Should I Do If I Suspect Conspiracy?

If you suspect or have information that competitors or suppliers are discussing and agreeing on the prices that they will charge customers, or on other aspects of business that may lessen or prevent competition, contact the Competition Bureau.

The Bureau conducts its investigations in private and keeps confidential the identity of the source and the information provided. However, if someone has important evidence about an offence under the Act, that person may be asked to testify in court.

How Does the Bureau Conduct an Investigation?

Bureau staff investigate a matter through confidential interviews and a review of records, documents and other sources of information.

If it appears that the law has been broken, the Bureau can apply to the courts to obtain search warrants or use other compulsory means to continue the investigation.

Once enough evidence has been obtained, the Bureau refers the matter to the Director of Public Prosecutions. The Director of Public Prosecutions then decides whether to prosecute in the criminal courts.

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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.

Headed by the Commissioner of Competition, the Bureau is responsible for the administration and enforcement of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For more information:

www.competitionbureau.gc.ca

Toll-free: 1-800-348-5358
National Capital Region: 819-997-4282
       TTY (for hearing impaired): 1-800-642-3844
       Fax: 819-997-0324

Information Centre
Competition Bureau
       50 Victoria Street
       Gatineau, QC K1A 0C9