May 16, 2013

No Free TV Down Under Apparently: Australian ACCC Settles with Cable Co. & A Few Tips for Canada

There used to be a saying that nothing in life is free.  In Australia, it seems, there are no free TVs, or at least not that many.  In a curious case posted by the Australian ACCC earlier today (or was that yesterday?), it announced that it had settled an allegedly false free TV promotional offer with Australian cable company FOXTEL. According to the ACCC, FOXTEL ran a promotion on, naturally TV, claiming that customers who subscribed to a 12 month plan would receive a free 22 inch neoniQ TV within ten days of cable service installation.  As it turns out, 8,400 people subscribed but the offer was limited to 1,500 free TVs, with a large number of subscribers never receiving the promised TVs. It seemed to me in reading this case that it also illustrated a few points relevant in Canada, including ensuring that advertising claims are both true and … read more »

May 6, 2013

“Babies Can Read” is Back – A Curious Advertising Tale on a Monday Afternoon

Advertising can be funny sometimes, or odd, or a bit like faith or all of these.   Let me explain what I’m talking about.  A few months ago, in perhaps one of the strangest advertising law tales I’ve seen in awhile (or ever), I wrote about the U.S. FTC commencing proceedings against the makers of “Your Baby Can Read!” products (see: here).  These products, which apparently include learning programs for toddlers such as DVDs, ‘lift-a-flap’ books, word cards, etc. and have been widely marketed on the Internet, are meant to teach young adults, er babies actually, between the ages of three months and five years to read. The claims, if true, have many hallmarks of purported credibility, including “scientific studies”, a founder with a Ph.D and other spiffy credentials.  Yep, babies can read say the makers or at least be taught to read if you buy the books. No said the … read more »

April 30, 2013

Ontario Government Introduces New Wireless Consumer Protection Legislation

As previously announced, the Ontario Government has now introduced for first reading new proposed legislation for wireless contracts and services in Ontario (Bill 60 – An Act to strengthen consumer protection with respect to consumer agreements relating to wireless services accessed from a cellular phone, smart phone or any other similar mobile device). In making its new announcement yesterday, along with the introduction of the Bill, Ontario’s Ministry of Consumer Services said: “Ontario is taking steps to strengthen consumer protection by introducing legislation today that would, if passed, make it easier for consumers to understand the costs and terms of their cell phone and wireless services contracts.” According to the Ministry, the new proposed consumer protection legislation would: limit the costs associated with cancelling a contract; require contracts to be written in plain, easy-to-understand language; ensure that wireless contracts clearly spelled out which services consumers get with a basic fee … read more »

April 24, 2013

New Real Estate Council of BC Advertising Rules for Licensees

Yesterday, the British Columbia Real Estate Council issued its new Report from Council Newsletter, which includes a summary of the new and updated advertising requirements for British Columbia real estate licensees (see: here).  The Council’s new newsletter states: “Each month, the Real Estate Council receives a large number of complaints relating to licensee advertising.  In order to reduce the number of complaints, the Council has updated its advertising requirements with several pictorial examples, an easy to use Advertising Checklist, and Guidelines for Common Online and Social Media Websites.  A link to the updated advertising requirements can be found here. The Council’s advertising requirements are intended to ensure the public is neither misled nor confused as to who is providing real estate services and to ensure the accuracy of representations being made about real estate and real estate services.  The Council Rules define real estate advertising as ‘any form of identification, … read more »

April 23, 2013

Alberta Pharmacists Debate Proposed Loyalty Marketing Restrictions

There has been quite a bit of debate recently in Canada about the pros and cons of regulation.  Some of the highlights of this debate have included announcements by the Competition Bureau that it is stepping up its advocacy efforts in certain regulated sectors (e.g., health, wireless, etc.) (see: here), calls by some policy groups (e.g., the CD Howe Institute) to more closely scrutinize anti-competitive restraints insulated by the “regulated conduct doctrine” (see: here) and a vigorous ongoing debate in the wireless sector about the level of appropriate regulation and extent to which Canada’s large three incumbent carriers should be insulated from foreign competition. In this context, this note in the Edmonton Journal caught my eye discussing an ongoing debate in Alberta about whether to allow or block loyalty programs for drug purchases (e.g., Air Miles, Aeroplan, Optimum points, etc.): Frills for pills tarnish profession, say Edmonton pharmacists who support … read more »

April 17, 2013

Ontario Plans New Legislation to Regulate Debt Settlement Services

Yesterday, Consumer Services in Ontario announced that it would be introducing new legislation to strengthen consumer protection rules for debt settlement services.  In making the announcement, the Ministry said: “Ontario consumers need to have confidence that they’re getting what they pay for when purchasing debt settlement services. We’re going to introduce legislation that would protect some of our most vulnerable consumers from being taken advantage of, at a time when they need the most help.” The new legislation, if passed, would include rules: banning companies from charging upfront fees for debt settlement services; capping the total fees consumers are charged; requiring clearer agreements; introducing a 10-day cooling-off period; and allowing non-compliant companies’ licenses to be revoked. According to the Ministry, there are currently 22 companies and 28 credit counseling providers offering debt settlement services in Ontario. For a link to the Ministry’s news release see: Strengthening Rules for Debt Settlement … read more »

April 12, 2013

New U.S. FTC Report With Competition and Advertising Highlights For the Past Year, Parallels to Competition Bureau Enforcement and Priorities

Earlier today, the U.S. Federal Trade Commission released 2013 Annual Highlights setting out its priorities over the past year, which generally include promoting online privacy and data security, fostering competition in high-tech industries and healthcare and protecting children and other vulnerable consumers from fraud. In making the announcement, FTC Chairwoman Edith Ramirez said: “As we head into our second century, the FTC is dedicated to advancing consumer interests while encouraging innovation and competition in our dynamic economy.” The FTC’s report summarizes its work in eleven general categories, including protecting consumer privacy, containing health care and drug costs, fostering innovation and competition, bringing challenges to deceptive advertising and marketing and protecting children. Some of the interesting competition and deceptive advertising highlights of the FTC’s new report include: – Enforcement statistics that include: enforcement actions that have focused on health care (31%), manufacturing (27%), pharmaceuticals (15%) and retail (14%); redress and disgorgement … read more »

April 11, 2013

Telemarketer Pays $100,000 Penalty – Reminder of National Do Not Call List Rules

In recent news that may serve as a cautionary tale for telemarketers, the Canadian Radio-television and Telecommunications Commission (CRTC) recently announced that Comwave Telenetworks Inc. has paid a $100,000 penalty as part of a settlement for telemarketing practices involving the National Do Not Call List (DNCL) rules (which are a subset of the CRTC’s Unsolicited Telecommunications Rules). According to the CRTC, its investigation found that, while the company did subscribe to the DNCL, there were months where it did not download an updated list. This resulted in the organization’s independent dealers calling numbers that were DNCL registered. A financial penalty was not the only consequence of this violation. Although Comwave decided to end its telemarketing practices, if it does recommence telemarketing in the future, it has agreed to take a number of steps, including: review its compliance programs (and appointing a compliance officer to ensure compliance with the DNCL); implement … read more »

April 6, 2013

A Few Thoughts on the Interim Commissioner of Competition’s C.D. Howe Institute Remarks

Yesterday, Canada’s Interim Commissioner of Competition, John Pecman, delivered remarks at the C.D. Howe Institute in Toronto – his fifth speech since taking the position of Interim Commissioner last fall (see: Remarks by John Pecman, Interim Commissioner of Competition).  In general, his remarks reflected some fairly well known aspects of his views as an antitrust official, notably his focus on enforcement (a theme consistent with the previous Commissioner who stepped down last fall). The Interim Commissioner’s remarks confirmed some recent announcements and developments, including an appetite by the Bureau for increased regulatory interventions and advocacy (e.g., in the digital, retail and health sectors), the its plans to continue with “sector days” to meet key players in important sectors of the economy (including telecom and digital) and an ongoing focus on criminal competition law enforcement, particularly with respect to price-fixing, bid-rigging and other cartels. With respect to regulatory interventions, the Bureau … read more »

March 29, 2013

Sell a House, a Little Ice Fishing and Other Promotions – Creative Ways to Use Contests (and a Few Tips for Staying Out of Trouble)

Want to win a house for $100? That’s exactly what one Ontario couple offered recently as a prize through a contest they came up with after watching the movie Spitfire Grill, where the main character holds a contest to give away her diner (see: Aylmer Couple Holds Essay Contest to Sell Country Home for $100). Apparently according to media reports, Diana and Calvin Brydges weren’t having much luck selling their country home in Aylmer (just outside of London, Ontario), so they decided to take another route — to run an essay contest where contestants explain how winning the house will benefit them and a $100 entry fee. This doesn’t mean the couple is giving away their home — which comes complete with a swimming pool in the backyard — for a mere $100.  Instead, they’re hoping to get 3,000 essays, which will translate to $300,000, which is enough to allow them … read more »

March 21, 2013

Telemarketing: CRTC Calls For Public Comments on Do Not Call List and Auto-Dialing Rules

Getting a sales call right when you’re eating dinner can be annoying.  On the other hand, like (in my view very valid) criticism of the pending anti-spam law, are telemarketing calls so troublesome that small and medium size companies should face yet more regulation? The CRTC is looking to reduce the number of unwanted calls, but has to balance this aim against potentially harming businesses that use auto-dialing for marketing. Yesterday, the CRTC announced that it has launched a new comprehensive review of its Unsolicited Telecommunications Rules, which include the National Do Not Call List (DNCL) rules and rules governing automatic dialing devices, or “ADADs”.  The CRTC is looking for ways to strike a balance between consumers and marketing companies, and will be seeking comments from consumers, marketers (who naturally want more flexibility in who they can call and how) and other interested persons. The CRTC is looking for input … read more »

March 19, 2013

U.S. FTC best practices for mobile advertisers and app developers – more U.S. activity and parallels Canadian enforcement priorities

Competition/antitrust enforcement agencies in both the U.S. and Canada have been increasing their focus on new media advertising/marketing practices, notably in the mobile space. In Canada, recent cases and initiatives include the ongoing challenge by the Competition Bureau of Bell/Rogers/Telus for allegedly misleading premium text claims, statements by the Interim Commissioner of Competition that one of the Bureau’s advocacy priorities includes the digital economy and Federal Government and regulatory (CRTC) initiatives to spur increased wireless competition. In the midst of these Canadian developments, the U.S. Federal Trade Commission has as well recently been increasing its focus on the digital economy, which has updated “Dot Com Disclosures” and a new video several days ago with advertising and privacy law tips for mobile app developers (see: FTC Staff Revises Online Advertising Disclosure Guidelines and FTC Announces Video With Tips for Mobile App Developers). In Canada, the equivalent to the FTC’s new Dot … read more »