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Federal Government Releases Proposed Bill relating to Fall Economic Statement – including Significant Competition Act Amendments

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Revised text of Bill C-56 Released

On November 27, 2023, the Federal Government passed a Notice of Ways and Means Motion to introduce a bill entitled An Act to implement certain provisions of the fall economic statement tabled in Parliament on November 21, 2023 and certain provisions of the budget tabled in Parliament on March 28, 2023, which was tabled on November 30, 2023 as Bill C-59 (the “Bill”). The Bill proposes amendments that implement some of the goals discussed in the 2023 Fall Economic Statement  to strengthen competition in Canada (as discussed in our previous blog post).Continue Reading Significant Competition Act Amendments on the Horizon

On November 21, 2023, the Federal Government released its 2023 Fall Economic Statement (the “Statement”). The Statement lays out the Federal Government’s multifaceted plan to improve housing in Canada, support the middle class, bolster the economy and create a stable financial sector. Additionally, the Statement outlines the Federal Government’s desire to strengthen competition in Canada through proposed amendments to the Competition Act (the “Act”). More specifically, the Statement discusses changes aimed at combatting alleged dominance abuses by large companies, modernizing merger reviews, protecting consumers from misleading claims and enabling private entities to engage in legal proceedings related to anti-competitive practices. These changes, according to the Statement, “will help bring Canada into alignment with international best practices to ensure that our marketplaces promote fairness, affordability, and innovation.”Continue Reading Federal Government Releases Fall Economic Statement – with New Competition Act Amendments Previewed

On June 23, 2022, Bill C-19, also known as the Budget Implementation Act, 2022, No.1 (the “BIA”), received royal assent. As discussed in our previous blog post, the BIA includes significant amendments to the Competition Act (the “Act”), including with respect to abuse of dominance, which came into force in June 2022. On October 25, 2023, the Competition Bureau (the “Bureau”) released a draft bulletin discussing its approach to the June 2022 abuse of dominance amendments (the “Draft Bulletin”). This blog post summarizes this new guidance.

By way of background, abuse of dominance under section 79 of the Act occurs when (i) a dominant firm or a dominant group of firms (ii) engages in a practice of anti-competitive acts, (iii) with the result that competition has been, is, or is likely to be prevented or lessened substantially in a market. Section 78 of the Act sets out a non-exhaustive list of examples of anti-competitive acts. Applications under the abuse of dominance provisions are heard only by the Competition Tribunal (the “Tribunal”). Where all three requirements of section 79 are met, the Tribunal may prohibit the anti-competitive conduct and may also direct the dominant firm to pay an administrative monetary penalty (“AMP”) or to take any action that is reasonable and necessary to overcome the anti-competitive effects of the conduct.Continue Reading Bureau Publishes New Abuse of Dominance Guidelines

The Dufresne Group (the “Group”), which operates Ashley Homestores and Dufresne Furniture and Appliances, must pay a substantial $3.25 million penalty, according to a statement from the Competition Bureau of Canada (the “Bureau”) released September 27, 2023. This settlement marks the resolution of concerns raised by the Bureau regarding the Group’s marketing practices.

The Bureau’s investigation into the Group’s marketing practices revealed a series of concerns related to the accuracy and honesty of their advertising claims. According to the Bureau, customers of Ashley Homestores were led to believe that they were benefiting from substantial discounts, based on assertions made through online platforms and various other advertising mediums within physical stores. Notably, the Bureau found that these apparent discounts were artificially exaggerated based on inflated regular prices, contrary to the ordinary price claims provisions of the Competition Act (the “Act”).Continue Reading The Dufresne Group Hit with $3.25 Million Penalty Amidst Competition Bureau’s Concerns Over Marketing Claims

On September 20, 2023, the Department of Innovation, Science and Economic Development (“ISED”) released a report summarizing the submissions received from the public relating to the ongoing competition law amendment consultation process (the “Consultation Report”).

By way of background, as discussed in our previous blog post, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, launched the much anticipated public consultation for potential amendments to the Competition Act (the “Act”) on November 17, 2022. The call for public engagement highlighted that the review would focus on the role and functioning of the Act, the role and powers of the Competition Bureau (the “Bureau”), the effectiveness of remedies and private redress mechanisms, addressing challenges of data and digital markets, and other pro-competitive policies.Continue Reading Public Consultation on Amendments to the Competition Act – Summary of Feedback

On September 18, 2023, Bill C-352, which was introduced by Jagmeet Singh (leader of the NDP), had its first reading in the House of Commons (the “Singh Bill”). On September 21, 2023, Bill C-56, which was introduced by Chrystia Freeland (Deputy Prime Minister and Minister of Finance), also received its first reading in the House of Commons (the “Government Bill”). Each of these bills includes significant proposed amendments to the Competition Act in response to the ongoing public consultation and legislation review process regarding competition policy in Canada.

While each of the bills share some similarities (including, for example, the introduction of market study powers and removal of the efficiencies defence), the bills include a number of different proposals and the Singh Bill includes overall more substantive recommendations for amendments to Canada’s existing competition law regime.Continue Reading Proposed Amendments to the Competition Act receive first reading in House of Commons

On September 14, 2023, Prime Minister Justin Trudeau made a public statement relating to issues of inflation, Canada’s middle class and competition policy. The statement was focused on measures which are aimed at reducing the cost of housing across Canada, supporting small businesses and addressing the escalating cost of groceries.Continue Reading Prime Minister Announces Proposed Competition Law Changes

On June 23, 2022, Bill C-19, also known as the Budget Implementation Act, 2022, No.1 (“BIA”), received royal assent. As discussed in more detail in our previous blog post, the BIA included significant amendments to the Competition Act (the “Act”), including the addition of new criminal cartel provisions prohibiting so-called wage-fixing and no-poaching agreements, which will become effective as of June 23, 2023. More specifically, these provisions will prohibit agreements between unaffiliated employers to either “fix, maintain, decrease or control salaries, wages or terms and conditions of employment” or “not solicit or hire employees”.Continue Reading Competition Bureau Issues Finalized Enforcement Guidelines for Wage-Fixing and No-Poaching Offences:  What You Need To Know

On November 17, 2022, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, launched the much anticipated public consultation for potential amendments to the Competition Act (the “Act”). As discussed in our previous blog post, this consultation was intended to serve as a wide-ranging review of existing competition policy in Canada, including whether the Act is fit for purpose in a modern economy that continues to evolve quickly.Continue Reading Competition Bureau Recommends Significant Changes to Competition Act

As discussed in our previous blog post, on November 17, 2022, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, launched the much anticipated public consultation on the second stage of potential amendments to the Competition Act (the “Act”).

As part of this consultation process, the Department of Innovation, Science and Economic Development (“ISED”) issued a discussion paper, titled The Future of Competition Policy in Canada (the “Discussion Paper”), which considers numerous issues and potential areas of reform, including in the mergers, unilateral conduct, competitor collaboration, deceptive marketing and administration/enforcement context. The Discussion Paper does not include any particular recommendations or proposed amendments to the Act. Rather, it simply sets the stage and invites feedback from interested stakeholders on the issues and potential areas of reform, which can be provided on or before February 27, 2023.

To help businesses better understand the issues and potential areas of reform included in the Discussion Paper, we’re releasing a series of blog posts discussing these issues and potential areas of reform on a topic-by-topic basis. This is the fourth blog post in the series, which is focused on deceptive marketing in Canada.Continue Reading Deceptive Marketing – Enforcement in the Digital Age