TORONTO, August 20, 2007 -- The Competition Bureau announced today that a Toronto telemarketing operation working under the names Business Supply Centre and National Supply Centre (company 1462986 Ontario Inc) has been fined $804,308 for its role in a deceptive telemarketing scam that sold toner to businesses, not-for-profit organizations, churches, schools and government agencies across Canada.
"Deceptive telemarketing scams have a negative impact on organizations, competition and the Canadian economy," said Andrea Rosen, Acting Deputy Commissioner of the Competition Bureau. "The Bureau is committed to combatting this criminal activity and encourages organizations to report any incidents to PhoneBusters, Canada's national anti-fraud call centre."
This represents the Competition Bureau's fourth conviction relating to deceptive telemarketing this year, with total fines reaching $3,354,308.
Andrew James Wilson, the registered Director of the company, pleaded guilty on behalf of himself and the company to contraventions of the telemarketing provisions of the Competition Act. The Ontario Court of Justice handed Wilson a 15-month conditional sentence, and both Wilson and the company are prohibited from engaging in any form of telemarketing for a period of 10 years. The scam generated over $4-million in revenues during a six-year period.
Telemarketers convinced victims to pay exorbitant prices for refilled and remanufactured cartridges by creating the impression that they were representing the victims' regular suppliers of toner and/or ink-jet cartridges, and by making false statements regarding price increases and discounts that created the illusion of cost savings.
Throughout its investigation, the Bureau worked with The Toronto Strategic Partnership. Members include the Toronto Police Service, the Ontario Provincial Police, the RCMP, the Ontario Ministry of Government Services, the U.S. Federal Trade Commission, the U.S. Postal Inspection Service, the UK's Office of Fair Trading, as well as the Competition Bureau. The Competition Bureau is a member of five international law enforcement partnerships, all of which are dedicated to combatting mass marketing fraud.
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 services. 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:
Marilyne Nanum
Communications Advisor
External Relations and Public Affairs Branch
(819) 953-9760
For general enquiries, please contact:
Information Centre
Competition Bureau
(819) 997-4282
1-800-348-5358
