OTTAWA, February 23, 2006 -- The Competition Bureau announced today that it has filed an application for an order with the Competition Tribunal to prevent Econoco Inc. and its directors from making misleading representations to the public about the Econopro, which is marketed as a device to save fuel and reduce emissions.
"Consumers are vulnerable when it comes to product performance claims," said Raymond Pierce, Deputy Commissioner of Competition. "The Competition Act states that these types of claims must be backed up by credible studies, failing which appropriate action will be taken."
The Bureau's application aims to prohibit Econoco Inc., president Réal Laroche and Claude Tardif, former VP and technical director, from making representations in the form of a statement, warranty or guarantee of the performance or efficacy of the Econopro or similar device that are not based on adequate and proper tests.
According to claims by Econoco Inc., the Econopro:
generates fuel savings of 10% or more;
completely eliminates gasoline engine emissions and reduces diesel engine emissions by 40% to 60%;
improves engine performance; and
separates the hydrocarbon chain using an electromagnetic field, allowing for better oxygenation and perfect fuel combustion.
The deceptive marketing practices provisions of the Competition Act prohibit making representations that are false or misleading, as well as statements about the performance or efficacy of products that are not based on adequate and proper tests.
The Tribunal could order Econoco Inc. and its directors to:
cease such conduct;
publish or otherwise disseminate a notice announcing the Tribunal's decision to members of the public likely to have been affected by the conduct;
pay an administrative monetary penalty not exceeding $100,000 for a corporation and $50,000 for an individual for a first order.
The respondents have 30 days to file a response with the Tribunal.
The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.
For media enquiries, please contact:
Maureen McGrath
Communications Advisor
Competition Bureau
(819) 953-8982, or (613) 296-2187 (cell)
For general enquiries, please contact:
Information Centre
Competition Bureau
(819) 997-4282
1-800-348-5358
