Biz Briefs

Published January 9, 2006

Record fines levied in price setting conspiracy

By CO Staff

Cascades Fine Papers Group Inc., Domtar Inc. and Unisource Canada have each been fined $10 million for their illegal activities in Ontario and an additional $2.5 million for their illegal activities in Quebec after the companies pleaded guilty in the Superior Court of Justice in Toronto to two counts of conspiring to lessen competition unduly contrary to section 45 of the Competition Act.

The previous record fine for a domestic corporation in a conspiracy was $2.5 million.

Each corporation admitted that the illegal agreements extended to:

  • respecting each other's market share to stabilize prices;
  • coordinating a response to a new market entrant;
  • implementing a common discount program;
  • maintaining price discipline to avoid a price war; and
  • sharing sales and pricing data.

The Competition Bureau, an independent law enforcement agency, initiated an investigation into the activities of the three firms in 2002. The investigation revealed that the convicted companies conspired to avoid competing with one another in the carbonless sheet markets in Ontario from October 1999 to September 2000, and during 2000 in Quebec. Carbonless sheets are used by commercial printers in the manufacture of forms and receipts.

If you enjoyed this article, be sure to visit CanadaOne's article knowledge base for more informative articles.

Author Info

CanadaOne is your just-in-time information source.
flight

CanadaOne Recommends

Overcome Conversation Power Plays: 5 Steps to Success

What should you do when your questions are being ignored? Follow these steps to manage your way through communication clashes.

Filing Your Business Income Tax Return: A 7 Step Guide for Self-Employed Canadians, Sole Proprietors and Partnerships

Not sure how to file your business income taxes? Be sure to read this step-by-step guide.

Avoiding Legal Perils Critical Insights into Canadian Franchise Law

Before you buy - or sell - a franchise, make sure that you understand these ins and outs of Canadian franchise legislation.

Bullies in the Boardroom: Covering the Legal Bases

To avoid bad debts and other board room antics, consider this advice from senior commercial litigator Igor Ellyn.