Snow removal businesses: Winter is coming
Agreeing with your competitors on prices or territories is illegal
August 11, 2022 – GATINEAU, QC – Competition Bureau
If you are in the snow removal business, you know what a tough job it is. When your clients are snowed in, you’re snowed under. As the white blanket awaits, it is the time of the year when customers start renewing their contracts.
Some competing snow removal companies in your region may approach you soon or over the course of the winter, offering to “share the workload” or “split streets” with you. They might even try to convince you to apply a surcharge for a heavy snowfall season.
Know that you are walking on thin ice when you discuss these subjects with competitors. Agreements with competitors on these topics are illegal and could have significant consequences for you and your business.
If you are in the snow removal business, know that it’s illegal to agree with competitors about:
- Prices you are charging, including any increases or surcharges.
- Territories, streets or neighborhoods you will cover.
- The number of customers you will sign up.
Plow through the season with the following tips:
- Decide on prices, price increases and surcharges on your own.
- Explain the terms of your service contract to your customers.
- Report any suspicious activity to the Competition Bureau immediately through the Whistleblowing initiative and the online form.
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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.
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