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S-242
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Competition Act
Explanatory Notes
First Session, Forty-second Parliament,
64-65-66 Elizabeth II, 2015-2016-2017
SENATE OF CANADA
BILL S-242
An Act to amend the Competition Act (misrepresentations to public)
FIRST READING, November 1, 2017
THE HONOURABLE SENATOR Enverga Jr.
4211715
SUMMARY
The text amends the Competition Act to add as reviewable conduct under Part VII.‍1 of that Act
(a) the failure to provide full disclosure of the terms of an agreement for the continuous supply of a product; and
(b) the making of a representation to the public as to the price of a product in a manner that suggests to the public that a significantly higher number of products will be supplied for that price.
Available on the Senate of Canada website at the following address:
www.sencanada.ca/en
1st Session, 42nd Parliament, 
64-65-66 Elizabeth II, 2015-2016-2017
SENATE OF CANADA
BILL S-242
An Act to amend the Competition Act (misrepresentations to public)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
R.‍S.‍, c. C-34
Competition Act
1 Subsection 74.‍01(1) of the Competition Act is amended by deleting “or” at the end of paragraph (b), by adding “or” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) makes a representation to the public in the form of an agreement for the continuous supply of a product and fails to provide full disclosure of the terms of the agreement, including the duration of the agreement, any changes in price of the product, any renewals, extensions of the agreement or amendments to the agreement.
2 Subsection 74.‍01(5) of the Act is replaced by the following: 
Significant lesser number of products supplied
(4.‍1) A person engages in reviewable conduct who, for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of promoting, directly or indirectly, any business interest, by any means whatever, makes a representation to the public as to the price of the product in a manner that suggests to the public that a significantly higher number of products will be supplied for that price.
Saving
(5) Subsections (2), (3) and (4.‍1) do not apply to a person who establishes that, in the circumstances, a representation as to price is not false or misleading in a material respect.
3 The portion of subsection 74.‍1(6) of the Act before paragraph (a) is replaced by the following:
Meaning of subsequent order
(6) For the purposes of paragraph (1)‍(c), an order made against a person in respect of conduct that is reviewable under paragraph 74.‍01(1)‍(a), (b), (c) or (d), subsection 74.‍01(2), (3) or (4.‍1) or section 74.‍02, 74.‍04, 74.‍05 or 74.‍06 is a subsequent order if
Coming into force
4 This Act comes into force on the first anniversary of the day on which it receives royal assent.
Published under authority of the Senate of Canada
explanatory notes
Competition Act
Clause 1: New.
Clause 2: Subsection 74.‍01(4.‍1) is new. Existing text of subsection 74.‍01(5):
(5) Subsections (2) and (3) do not apply to a person who establishes that, in the circumstances, a representation as to price is not false or misleading in a material respect.
Clause 3: Existing text of relevant portions of subsection 74.‍1(6):
(6) For the purposes of paragraph (1)‍(c), an order made against a person in respect of conduct that is reviewable under paragraph 74.‍01(1)‍(a), (b) or (c), subsection 74.‍01(2) or (3) or section 74.‍02, 74.‍04, 74.‍05 or 74.‍06 is a subsequent order if
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