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Bill C-23

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RECOMMENDATION

Her Excellency the Governor General recommends to the House of Commons the appropriation of public revenue under the circumstances, in the manner and for the purposes set out in a measure entitled ``An Act to amend the Competition Act and the Competition Tribunal Act''.

SUMMARY

This enactment amends the Competition Act and Competition Tribunal Act. The amendments include the following:

- amendments to facilitate cooperation with foreign competition authorities for the enforcement of civil competition and fair trade practices laws;

- amendments prohibiting deceptive prize notices;

- amendments streamlining the Competition Tribunal process by providing for cost awards, summary dispositions and references;

- amendments broadening the scope under which the Tribunal may issue temporary orders; and

- some housekeeping items.

EXPLANATORY NOTES

Competition Act

Clause 1: The relevant portion of subsection 11(1) reads as follows:

11. (1) Where, on the ex parte application of the Commissioner or the authorized representative of the Commissioner, a judge of a superior or county court or of the Federal Court is satisfied by information on oath or solemn affirmation that an inquiry is being made under section 10 and that any person has or is likely to have information that is relevant to the inquiry, the judge may order that person to

    . . .

    (b) produce a record, or any other thing, specified in the order to the Commissioner or the authorized representative of the Commissioner within a time and at a place specified in the order; or

Clause 2: New.

Clause 3: New.

Clause 4: Subsection 32(3) reads as follows:

(3) No order shall be made under this section that is at variance with any treaty, convention, arrangement or engagement with any other country respecting patents, trade-marks, copyrights or integrated circuit topographies to which Canada is a party.

Clause 5: (1) and (2) The relevant portion of subsection 33(1) reads as follows:

33. (1) A court may, on application by or on behalf of the Attorney General of Canada or the attorney general of a province, issue an interim injunction forbidding any person named in the application from doing any act or thing that it appears to the court may constitute or be directed toward the commission of an offence, pending the commencement or completion of a proceeding under subsection 34(2) or a prosecution against the person, where it appears to the court, that the person has done, is about to do or is likely to do any act or thing constituting or directed toward the commission of an offence under Part VI or section 66, and that

    . . .

    (b) in the case of an offence under section 52.1, if the offence is committed or continued,

      . . .

      (ii) one or more persons are likely to suffer damage from the commission of the offence that will be substantially greater than any damage that persons named in the application are likely to suffer from an injunction issued under this subsection in the event that it is subsequently found that an offence under section 52.1 has not been committed, was not about to be committed and was not likely to be committed.

(3) The relevant portion of subsection 33(1.1) reads as follows:

(1.1) An injunction issued in respect of an offence under section 52.1 may forbid any person from supplying to another person a product that is or is likely to be used for the commission or continuation of such an offence, where the person being supplied or, in the case of a corporation, any of its officers or directors, was previously

    (a) convicted of an offence under section 52.1 or an offence under section 52 in respect of conduct prohibited by section 52.1; or

Clause 6: New.

Clause 7: New.

Clause 8: Subsection 73(1) reads as follows:

73. (1) Subject to this section, the Attorney General of Canada may institute and conduct any prosecution or other proceedings under section 34, any of sections 45 to 51 and section 61 or, where the proceedings are on indictment, under section 52, 52.1, 55, 55.1 or 66, in the Federal Court - Trial Division, and for the purposes of the prosecution or other proceedings, the Federal Court - Trial Division has all the powers and jurisdiction of a superior court of criminal jurisdiction under the Criminal Code and under this Act.

Clause 9: Subsection 74.07(2) reads as follows:

(2) Sections 74.01 to 74.06 do not apply in respect of conduct prohibited by sections 52.1, 55 and 55.1.

Clause 10: (1) Subsection 74.11(2) reads as follows:

(2) Subject to subsection (5), an order issued under subsection (1) shall have effect for such period as is specified in it, not exceeding fourteen days unless agreed to by the person against whom the order is sought or unless, on further application, the order is extended for an additional period not exceeding fourteen days.

(2) Subsection 74.11(6) is new. Subsection 74.11(5) reads as follows:

(5) An order issued ex parte shall have effect for such period as is specified in it, not exceeding seven days unless, on further application made on notice as provided in subsection (3), the order is extended for an additional period not exceeding twenty-one days.

Clause 11: Sections 74.12 and 74.13 read as follows:

74.12 (1) Where an application is made to a court for an order under this Part and the Commissioner and the person against whom the order is sought agree on the terms of the order, whether or not any of the terms could have been imposed by the court under this Part, the order agreed to may be filed with the court for immediate registration.

(2) On being filed under subsection (1), an order shall be registered and, when registered, shall have the same force and effect, and all proceedings may be taken, as if the order had been made by the court.

74.13 An order made under this Part may be rescinded or varied by the court that made the order where, on application by the Commissioner or the person against whom the order was made, the court finds that the circumstances that led to the making of the order have changed and that, in the circumstances that exist at the time the application is made, the order would not have been made or would have been ineffective in achieving its intended purpose.

Clause 12: New.

Clause 13: Subsection 104(1) reads as follows:

104. (1) Where an application has been made for an order under this Part, other than an interim order under section 100, the Tribunal, on application by the Commissioner, may issue such interim order as it considers appropriate, having regard to the principles ordinarily considered by superior courts when granting interlocutory or injunctive relief.

Clause 14: Sections 105 and 106 read as follows:

105. Where an application is made to the Tribunal under this Part for an order and the Commissioner and the person in respect of whom the order is sought agree on the terms of the order, the Tribunal may make the order on those terms without hearing such evidence as would ordinarily be placed before the Tribunal had the application been contested or further contested.

106. Where, on application by the Commissioner or a person against whom an order has been made under this Part, the Tribunal finds that

    (a) the circumstances that led to the making of the order have changed and, in the circumstances that exist at the time the application is made under this section, the order would not have been made or would have been ineffective to achieve its intended purpose, or

    (b) the Commissioner and the person against whom an order has been made have consented to an alternative order,

the Tribunal may rescind or vary the order accordingly.

Clause 15: Sections 124.1 and 124.2 are new. The headings before section 125 read as follows:

PART X

GENERAL

Representations to Boards, Commissions or Other Tribunals

Competition Tribunal Act

Clause 16: The relevant portion of subsection 3(2) reads as follows:

(2) The Tribunal shall consist of

    (a) not more than four members to be appointed from among the judges of the Federal Court - Trial Division by the Governor in Council on the recommendation of the Minister of Justice; and

Clause 17: New.

Clause 18: New.

Clause 19: Subsection 11(1) reads as follows:

11. (1) The Chairman of the Tribunal, sitting alone, or a judicial member designated by the Chairman, sitting alone, may hear and dispose of applications for interim orders under subsection 100(1) or 104(1), and applications under subsection 4.1(2) or (4) or 104.1(7), of the Competition Act and any related matters.