|
Doc. #2
|
|
No.
|
THE COMPETITION TRIBUNAL
IN THE MATTER OF THE COMPETITION ACT, R.S.C. 1985,
c. C-34, as amended;
AND IN THE MATTER OF an inquiry under subparagraph 10(1)(b)(ii) of the Competition Act concerning trade practices by Professional Consultants (Electroprotections) Inc.- Gestion Professionnelle (Electroprotections) Inc. and Jean Hugues Chenard;
AND an application for a consent order filed by the Commissioner of Competition under section 74.12 of the Competition Act
BETWEEN:
THE COMMISSIONER OF COMPETITION
Applicant,
-and-
PROFESSIONAL CONSULTANTS (ELECTROPROTECTIONS) INC.
|
Respondents,
|
|
-and-
|
|
In his capacity as president
|
|
Third Party
|
COMPETITION TRIBUNAL TRIBUNAL DE LA CONCURRENCE P
:
AND WHEREAS Professional Consultants (Electroprotections) Inc. - Gestion Professionelle (Electroprotections) Inc. (the respondents), manufactured the ML-10, an electronic anti-corrosion device, and promoted it in newspapers, on the radio and at the point of sale, namely at several car and light truck dealerships, at VitroPlus dealerships and by distributing other promotional documents;
AND WHEREAS the respondents, for the purpose of promoting the sale and installation of the ML-10 electronic anti-corrosion device, made false or misleading representations to the public and their representatives in a material respect, and more particularly:
that the ML-10 electronic anti-corrosion device protects the metal (sheet metal panels) of all cars and light trucks, new or used, against all manifestations of rust for 8 years from the date of initial use of the vehicle;
that the ML-10 electronic anti-corrosion device’s technology provides cathodic rust protection by producing a large number of free electrons that cover the entire surface of a vehicle;
Page 2 of 6
AND WHEREAS the respondents made representations to the public in the form of a statement regarding the performance, effectiveness and durability of the ML-10 electronic anti-corrosion device that were not based on a sufficient and proper test;
AND WHEREAS the respondents have made representations to the public that have created a general misimpression that the ML-10 is the result of a new technology that provides more effective rust protection than traditional protective coating methods.
THE PARTIES CONSENT TO THE REGISTRATION WITH THE COMPETITION TRIBUNAL OF AN ORDER PROVIDING AS FOLLOWS:
The respondents and Jean Hugues Chénard (third party), in his capacity as president, and any person acting in their name or on their behalf, including their officers, employees, agents or assigns, must cease making representations by any means, including the Internet, and shall cease causing or permitting to be made or made available false or misleading representations directly or indirectly for the purpose of promoting or endorsingthemarketing of the above-mentioned ML-10 electronic anti-corrosion device or any other similar promotion.
Page 3 of 6
The respondents and the third party shall cease the promotion or any other form of marketing of the ML- 10 electronic anti-corrosion device by ensuring:
that the respondents, all representatives of the respondents and all automobile and VitroPlus dealers who were bound by a franchise agreement cease all forms of advertising of the ML-10;
that all advertising materials used by representatives and dealers, including waiting room signs, billboards, outdoor signs and sales literature, be returned to the respondents;
C. that all unsold ML-10 devices from representatives and dealers be returned to the respondents.
The respondents and the third party shall cancel all franchise agreements with the dealers regarding the sale and installation of the ML-10 and inform them that the warranty and rust insurance program will be continued by the respondents on the terms previously established, for a period of eight years from the original in-service date of each of the vehicles on which the ML-10 has been installed.
Page 4 of 6
The respondentsand the third partyshall refrain from reintroducing, directly or indirectly, the ML-10 or any other similar product into the Canadian market without sufficient and appropriate testing.
6.
This Order shall be enforceable for ten years from the date of its registration.
The Parties acknowledge and agree that this Order shall have effect as if it had been made by the Competition Tribunal, as provided in subsection 74.12(2) of the Competition Act.
Page 5 of 6
|
DATED this 28th day of August
|
|
Deputy Commissioner
|
|
DATED this 7th day of September 2000
|
|
Witness
|
|
In his capacity as president
|
|
Witness
|
Professional Consultants (Electroprotections) Inc.
Page 6 of 6
de GPI
720 Aragon. Beloeil, Quebec J3G ?K9 Tel.: (450) 446-6068 . 1-888-677-7707
Fax: (450) 446-6355
APPENDIX “A”
ADDRESS OF THE CONSUMER
SUBJECT: ML-10 Electronic Anti-corrosion Device
To whom it may concern:
Further to the mutual consent of the Commissioner of Competition and Professional Consultants (Electroprotections) Inc., an order has been issued under the Competition Act and we inform you that we can no longer sell the ML-10 electronic anti-corrosion device on the Canadian market.
However, we wish to confirm that the warranty and rust insurance program that accompanies the ML-10 device that was installed on your vehicle by (name of dealer) on (date of installation) will be maintained by Professional Consultants (Electroprotections) Inc. for eight years after the original in-service date of your vehicle and according to the conditions stipulated in the warranty and insurance.
If you need any further information on this subject, please contact us at contact us at (450) 446‑6068 for Montreal residents or 1-888-677-7707 for those outside Montreal. You can also reach us by fax at (450) 446-6355 or write to us at 720 Aragon, Beloeil, Quebec, J3G 6K9.
J.H. Chenard President
Professional Consultants (Electroprotections) Inc.