Competition Bureau Canada

Competition Bureau Canada

June 22, 2009 12:02 ET

Competition Bureau Obtains Court Order Against the Saskatchewan Roofing Contractors Association

SASKATOON, SASKATCHEWAN--(Marketwire - June 22, 2009) - The Competition Bureau has taken action to address potentially anti-competitive practices by the Saskatchewan Roofing Contractors Association.

As part of a court order issued Friday, the Saskatchewan Roofing Contractors Association agreed to advise the Commissioner of Competition in writing, immediately, if it becomes aware of any unauthorized communications or activity relating to the pricing of products; implement a compliance program for its members; and educate its members about bid-rigging and conspiracy offences under the Competition Act.

"This resolution will help the public benefit from competitive prices for roofing services in Saskatchewan," said John Pecman, Acting Senior Deputy Commissioner of Competition. "We hope it will deter other businesses from engaging in potentially anti-competitive activity, especially given the current economic climate."

The order prohibits the association from taking any action directed towards the commission of an offence under the conspiracy and bid-rigging provisions of the Competition Act. The association is required to educate its members on the relevant provisions of the Act and the terms of the order. It also requires the association's members, as a condition of membership, to acknowledge in writing that they will abide by the association's corporate compliance program. This order, known as a prohibition order, is in place for five years.

The Bureau's inquiry focused on allegations that some members of the Saskatchewan Roofing Contractors Association had discussed not submitting bids in response to a request for tenders for a roofing project, valued at $800,000, for the school in La Loche, Saskatchewan.

Under the conspiracy provision of the Competition Act, it is a criminal offence to agree on prices or divvy up markets where it results in a serious lessening of competition. Bid-rigging is a criminal offence where bidders secretly agree not to submit a bid or to submit bids that have been pre-arranged among themselves, with a goal to thwart the competitive tendering process and inflate prices to purchasers.

For more information on bid-rigging, as well as tips for procurers on how to detect bid-rigging, please visit the Bureau's Web site (http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/h_00110.html).

The Competition Bureau is an independent agency that contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

Contact Information

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