The Litigator

THE LITIGATOR

Commentary on Law Affecting Business

The Litigator
AGM :: Affleck Greene McMurtry LLP

THE LITIGATOR

Affleck Greene McMurtry LLP
365 Bay Street, Suite 200  ·  Toronto, Canada
416 360 2800  ·  info@agmlawyers.com  ·  www.thelitigator.ca

Competition Bureau obtains record fine for domestic paper conspiracy

On January 9, 2006, paper distributors Cascades Fine Papers Group Inc., Domtar Inc. and Unisource 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 carbonless sheets in Ontario in 1999-2000 and in 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 orders requiring them to educate their employees about complying with the Act 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 corporate executives and employees on notice 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 litigation.

Published January 10, 2005

 

 

Links

Competition Bureau press release (contains links to Agreed Statement of Facts and Prohibition order): http://www.competitionbureau.gc.ca/internet/index.cfm?itemID=2018&lg=e

Domtar press release: http://www.domtar.com/en/media/pressreleases/2359.asp

Cascades press release: http://www.newswire.ca/en/releases/archive/January2006/09/c0794.html

article keywords: Competition law, , Antitrust, , conspiracy, price-fixing, carbonless paper, 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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