Reviewable conduct (Competition Act)

Reviewable conduct is the Competition Act’s term for a group of marketing practices dealt with under its civil provisions. One is s. 74.01(1)(a): for the purpose of promoting, directly or indirectly, the supply or use of a product or any business interest, making a representation to the public that is false or misleading in a material respect. Because the section reaches the promotion of any business interest, a buyer may want to know what claims a franchisor’s advertising and sales material makes. See what a franchisor must disclose before you sign.

How it is enforced

The Competition Bureau says civil practices are brought before the Competition Tribunal, the Federal Court or the superior court of a province or territory, and that each element must be proven on a balance of probabilities. Among the orders s. 74.1(1) lists, a court may order the person to stop the conduct, to publish a notice, or to pay an administrative monetary penalty. Under s. 74.1(3), no order under paragraph (1)(b), (c) or (d) may be made if the person establishes that it exercised due diligence to prevent the conduct. Section 74.12 lets the Commissioner and a person in respect of whom the Commissioner has applied or may apply for an order under Part VII.1 sign a consent agreement. The offence side is covered under deceptive marketing practices.

What to ask

• Whether the franchisor or the seller has had a complaint, an inquiry or an order about its marketing
• Whether a consent agreement with the Commissioner exists, and what it requires
• What supports the claims in the current sales material