Madam Speaker, we have before the House today a package of amendments to the Competition Act and its companion statute, the Competition Tribunal Act. Together these statutes constitute a fundamental framework in the rules for the operation of free trade and a competitive marketplace for Canada.
The Competition Act is a broad based statute that affects virtually all industrial sectors and business entities in Canada, whether large or small, domestic or international, or involved in manufacturing, services or resources. The legislation seeks to enhance competitive market forces.
Competition is important. It is not a means to itself but rather a means to an end. Competition encourages firms to lower costs, reduce prices, improve services and develop new products.
Consumers are the prime beneficiaries of a competitive economy. After all, competition is driven by consumer demands. In a competitive environment consumers decide what they want to buy based on their individual needs, preferences and incomes. The marketplace responds efficiently to this demand by supplying consumers with the right product at the right price.
An amendment being considered today would make it an offence to promote deceptive contests by mail, fax or Internet. Under the new provision it would be a criminal offence to make people believe they have won a prize and that they must make a payment or incur a cost to collect it, to increase their chances of winning it or simply to get more information regarding it.
Deceptions of this sort hurt Canadians. I have talked to people across the country about the devastating effects on the people that have been duped. These practices also hurt responsible businesses and charities by undermining their legitimate marketing efforts and many of them damage our reputation abroad by targeting persons outside Canada.
For these reasons such rackets must be stopped, and the sooner the better. The new provision would add a valuable enforcement tool against deceptive marketing practices. It would complement existing provisions against deceptive advertising and telemarketing and help ensure that consumers have the information they need to make informed choices.
Sellers would be rewarded for their ability to offer good products at low prices rather than their cunning ability to deceive the consumer. Honest businesses would no longer be threatened by the anti-competitive practices of dishonest businesses.
The amendments proposed in the bill would help keep Canada's competition laws up to date, but the work is clearly not over. Globalization and rapid technological developments are continually changing the marketplace and the ways in which business is conducted. To remain effective and relevant the Competition Act must remain both modern and dynamic.
The amendments constitute one step in the continuing evolution of our competition legislation. The changes constitute a balanced package of amendments that would better enable the Competition Act to protect free competition and the public interest.
The amendments would protect consumers and honest businesses alike. The bill would strengthen and improve the overall level of competition in the marketplace and benefit all Canadians.
I wholeheartedly endorse the amendments and believe they are worthy of the support of all members of the House.