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Competition Bureau settles Re/Max franchise dispute

OTTAWA - The Competition Bureau has ordered three Re/Max branches - Re/Max Ontario, Re/Max Western, and Re/Max International - to change policies that prevent franchise owners from publicizing commission rates and fees.

In addition to these changes the Bureau has also ordered the following restrictions:

  • trying to increase commission rates by any means
  • attempting to persuade independent publishers to deny advertising from Re/Max franchise owners because of these publicized commission rates

An investigation into the restrictive policies of Re/Max Ontario and Re/Max Western prompted the Competition Bureau to issue the Court Order. Under The Competition Act it is illegal to influence an increase or decrease in resale prices through threats, promises, and agreements. It is also illegal to discriminate against an organization because of low pricing policies.

The Bureau will be able to take further legal action against any franchise owner who doesn't follow these new orders. As part of the ruling franchise owners and their sales associates have been issued reminders. Some non-compliant associates have already been terminated.



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