According to the Direct Selling Association, in 2011 alone some 92 million multi-level marketing (MLM) plan operators, or direct selling businesses, grossed over $154 billion world-wide. While MLM plans can be a profitable business model, caution is warranted for prospective market entrants as they must comply with many provincial requirements and ensure that their proposed business model is not deemed to be an illegal pyramid scheme under the Competition Act (the “Act”). … Continue Reading
Canadian plaintiff class action lawyers often file copycat class actions to those filed in the United States, so Canadian retail businesses are well-served to pay attention to trends in US class actions.
One area of recent interest in the United States has been the travel and tourism industry, where two major travel-related class actions are now ongoing, both alleging that travel booking websites and hotels entered into agreements with each other to fix prices. This type of price-fixing class action has been seen in Canada in a variety of industries.
Canadian businesses should review their pricing policies and practices with … Continue Reading
One area that has been of considerable interest to class action plaintiffs in recent years is price-fixing.
If there has been any interest in your product or niche market, or that of your competitors, by any competition or anti-trust regulator in any jurisdiction in the world, you should consider your business to be at risk of a class action. Price-fixing class actions can take a variety of forms, but the most common form alleges a price-fixing conspiracy, either among competitors (a horizontal conspiracy) or within a supply chain (a vertical conspiracy).
Class action plaintiffs look to regulatory investigations all over … Continue Reading