In Canada, the federal Competition Act prohibits certain marketing activities, which include:

• Resale price maintenance

• Predatory pricing

• Price discrimination

• Deceptive marketing, including telemarketing


Under the Competition Act, suppliers are prohibited from directly or indirectly attempting to influence upward, or discourage the reduction of, the price at which anyone else supplies, offers to supply or advertises a product within Canada. To contravene the Competition Act this behavior must have had, or is likely to have, an adverse effect on competition. This rule does not apply where the person attempting to influence the conduct of another person and that other person are:

• Affiliated corporations

• Director, agent, officer or employee of either the same or affiliated corporation, partnership or sole proprietorship

• Principal and agent

This exception also applies to franchising relationships. In addition, suppliers are prohibited from refusing to supply a purchaser because of a purchaser’s low pricing policy. It is lawful in packaging to have “suggested retail prices”; however, requiring any business in the supply chain to maintain a minimum resale price is unlawful.

Please see full chapter below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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