Private right of action for damages (Competition Act s. 36)

A franchisee meets this term when it believes a supplier, a franchisor or others took part in conduct the Act makes an offence. Part VI of the Competition Act is headed Offences in Relation to Competition and begins with s. 45. The Competition Bureau explains that private parties can commence proceedings under s. 36 to recover loss or damages from conduct contrary to Part VI or from a failure to comply with an order. See non-competes and the Competition Act.

What the section provides

Section 36(1) lets the person sue, in any court of competent jurisdiction, for an amount equal to the loss or damage proved, together with any additional amount the court may allow not exceeding the full cost of any investigation in connection with the matter and of proceedings under the section. The Bureau says the section is intended to foster the ability of victims to recover loss or damage from anti-competitive conduct. A limitation period applies, and its conditions are in the section itself. Compare private access to the Competition Tribunal.

What to ask

• Is the conduct one that Part VI covers, or conduct reviewable under another Part?
• What loss can be shown, and when did the conduct happen compared with the limitation period?
• Does the franchise agreement affect where a claim could be heard?