OTTAWA, February 22, 2006 - The Competition Bureau has successfully shut down two Edmonton-based Internet scams promoting resumé distribution services. Matthew Hovila, of Edmonton, Alberta, and Strategic Ecomm Inc. admitted to contraventions of the Competition Act and have agreed to pay a $100,000 administrative monetary penalty, as part of a consent agreement filed today with the Competition Tribunal.
The settlement with Matthew Hovila and Strategic Ecomm Inc. addresses the Bureau's concerns of false and misleading representations, phoney testimonials and exaggerated ordinary selling price claims with regard to the resumé distribution services promoted on two commercial Web sites.
According to the Bureau's investigation, consumers registered on www.oilcareer.com or www.governmentaljobs.com hoping to find employment in the oil and gas industry or a government position in the United States. Consumers who contacted the Bureau complained that they did not receive job offers and were unable to get a refund from the company. The Bureau received complaints from around the world, including Canada, the United States and Australia. While the majority paid $397 (U.S.), some reportedly paid as much as $1,197 (U.S.) to the Edmonton-based company.
"Consumers can be vulnerable, particularly when looking for work, and can fall prey to those offering supposedly legitimate employment services," said Raymond Pierce, Deputy Commissioner. "The Bureau is committed to applying the Competition Act to the online marketplace and pursuing scams on the Internet to ensure continuing consumer confidence in buying on-line."
Matthew Hovila and Strategic Ecomm Inc. made misrepresentions regarding the number of companies to which resumés were forwarded, their relationships with potential employers, and the effectiveness of their services. Further they misrepresented the validity of a "money-back risk-free guarantee" and their endorsement by an on-line third-party watchdog. Matthew Hovila and Strategic Ecomm Inc. also provided phoney customer testimonials and misled customers to believe their services were "on sale" for a time limited special price.
Under the consent agreement, Strategic Ecomm Inc. and Matthew Hovila, have agreed, among other things, to:
admit to having committed reviewable conduct under the Competition Act;
pay an administrative monetary penalty of $100,000;
publish corrective notices; and
discontinue the offending conduct on the www.oilcareer.com and www.governmentaljobs.com Web sites.
This investigation was conducted with the assistance of the Alberta Partnership Against Cross-Border Fraud, a law enforcement partnership established to combat cross-border fraud. Its membership consists of the Alberta Government Services, RCMP "K" Division, the Calgary Police Service, the Edmonton Police Service, the United States Federal Trade Commission, the United States Postal Inspection Service and the Competition Bureau.
Consumers who suspect they have been the victim of deceptive business practices on the Internet or who want information on the application of the Competition Act should contact the Bureau's Information Centre at 1-800-348-5358, or visit the Web site at www.competitionbureau.gc.ca.
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.
To view a copy of the Consent Agreement, go to: www.ct-tc.gc.ca.
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
