Jail time for Montreal businessman convicted of deceptive marketing
September 28, 2017 – OTTAWA, ON – Competition Bureau
The Court of Quebec sentenced John Dragan, the president of two now defunct Montreal-based mail order businesses (JD Marvel and CDN Mail Order Exchange) to 18 months in prison for deceptive marketing.
Mr. Dragan was sentenced to 10 months in jail for making false claims regarding “Clear Vue”, a device he claimed worked like a giant TV antenna and could replace cable service. He was also sentenced to 18 months for deceiving consumers about advertised delivery times for “Clear Vue” as well as other products he was selling. The sentences are to be served concurrently.
In addition, the Court prohibited Dragan from selling goods to consumers in cases where they cannot see the product before purchase (for example, via online sales), for a period of five years.
The offences relate to false representations made to Canadian and American consumers.
“I am very satisfied with this sentence. The fact that the accused is going to jail sends a clear message that those who deceive consumers face very serious penalties. As consumers did in this case, we strongly encourage anyone who believes that a company or an individual has contravened the Competition Act to contact the Bureau and file a complaint.”
Commissioner of Competition
JD Marvel and CDN Mail Order Exchange offered a wide range of consumer products through mail order, advertising inserts, coupons in discount envelopes and magazines, catalogues and online.
Between 1999 and 2005, the Bureau received more than 5,900 complaints concerning the marketing practices of JD Marvel and CDN Mail Order Exchange.
The Court of Quebec found Dragan guilty of four charges of deceptive marketing.
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