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Competition Bureau obtains record fine for domestic paper conspiracy

On January 9, 2006, paper distributors Cascades Fine Papers Group Inc., Domtar Inc. and Unisource Canada each pleaded guilty to two counts of conspiracy and were fined $12.5 million each, for a total of $37.5 million, for conspiring to fix the price for in Ontario in 1999-2000 and in Quebec in 2000. Carbonless sheets are multi-ply forms with a chemical coating that transfers images from one ply to the next without the need for carbon paper.

The three distributors also undertook to fire certain key personnel associated with the conspiracy, and agreed to prohibition orders requiring them to educate their employees about complying with the and inform them of the identity of personnel fired for involvement in the conspiracy.

In a press release, Sheridan Scott said: “These record fines reflect the serious nature of this criminal behaviour and put executives and employees on that they are accountable for their actions.”

Domtar and Cascades issued press releases explaining that they settled with the Bureau in order to avoid lengthy and costly .

Published January 10, 2005




Bureau press release (contains links to Agreed Statement of Facts and Prohibition order):

Domtar press release:

Cascades press release:

article keywords: Competition law, Competition Act, Antitrust, , conspiracy, price-fixing, , carbonless sheets, Competition Bureau


W. Michael G. Osborne
Affleck Greene McMurtry LLP

W. Michael G. Osborne

Michael Osborne is a former Partner of Affleck Greene McMurtry LLP

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