Earlier today, the Competition Bureau announced that a Canadian telemarketer has been sentenced, following a guilty plea, to an 18 month prison sentence in a misleading advertising and deceptive telemarketing case. According to the Bureau, the telemarketer was engaged in deceptive marketing of online business directory listings.
The announcement, while brief, is a reminder of several key points: (1) Canada’s Competition Bureau continues to seek individual liability in criminal Competition Act cases (including where marketing is more clearly deceptive, intentional or fraudulent); (2) misleading advertising can be pursued as either a civil matter or criminal offence in Canada; (3) corporate compliance programs, where companies or other organizations are engaged in advertising or marketing, should include misleading advertising compliance guidelines.
With respect to the latter point, while most companies marketing in Canada are not engaged in the type of conduct that would be likely to attract criminal liability, the potential penalties and effort associated with a misleading advertising investigation or challenge can nevertheless be significant (thus a practical dose of compliance and vetting advertising before launched is prudent).
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I am a Toronto competition/antitrust lawyer and advertising/marketing lawyer who helps clients in Toronto, Canada and the US practically navigate Canada’s advertising and marketing laws and offers Canadian advertising/marketing law services in relation to print, online, new media, social media and e-mail marketing.
My Canadian advertising/marketing law services include advice in relation to: anti-spam legislation (CASL); Competition Bureau complaints; the general misleading advertising provisions of the federal Competition Act; Internet, new media and social media advertising and marketing; promotional contests (sweepstakes); and sales and promotions. I also provide advice relating to specific types of advertising issues, including performance claims, testimonials, disclaimers, drip pricing, astroturfing and native advertising.
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