New draft guidance on multi-level marketing and pyramid selling

Kim D.G. Alexander-Cook

On March 31, 2008 the Commissioner of Competition (the Commissioner) issued a draft Information Bulletin entitled Multi-level Marketing and Scheme of Pyramid Selling, Sections 55 and 55.1 of the Competition Act.  Once finalized, this bulletin will replace existing 1996 guidance on the same topic.  Written comments on the draft Bulletin will be accepted by the Competition Bureau until June 30, 2008.
 

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No hockey for Hamilton: NHL restrictions on franchise relocation not anti-competitive

Susan M. Hutton
 

On March 31, 2008 Canada's Competition Bureau announced the conclusion of its investigation into the policies of the National Hockey League (the NHL) for the approval of transfers of ownership and relocations of franchises.  The Bureau concluded they were not in violation of the civil "abuse of dominance" provisions (s. 79) of the Competition Act.  The inquiry had been commenced by the Bureau in June 2007, following media reports that James Balsillie, co-CEO of Research In Motion (makers of the BlackberryT personal communications device), had been foiled in his latest attempt to buy an NHL franchise and move it to southern Ontario (either Hamilton or Kitchener-Waterloo) when the NHL refused to consider the relocation of the Nashville franchise.

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Brian Gover appointed to advise the bureau on section 11

Susan M. Hutton

March 3, 2008:  Brian Gover, a partner at Stockwoods LLP Barristers, a former criminal crown counsel and experienced trial lawyer, has been appointed to advise Sheridan Scott, Commissioner of Competition, and John Sims, Deputy Minister of Justice, on the Bureau's section 11 process. 

In particular, he is to report on the standard of disclosure required in ex parte applications under s. 11 for orders for the production of documents and information under the Competition Act, and to make recommendations to assist in ensuring that the Competition Bureau makes adequate disclosure to the courts in ex parte section 11 proceedings.

The Bureau was roundly rebuked by the Federal Court in a January, 2008 decision setting aside section 11 orders issued by it in November, 2007 in the ongoing Labatt/Lakeport merger inquiry, saying that the information filed by the Commissioner had been "misleading, inaccurate and incomplete." For further detail see "Substantial disclosure obligations for production orders: Federal Court rebukes Commissioner" (The Competitor, February 11, 2008). Mr. Gover is to report by June.