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Appellate Court Confirms an Individual Defendant Must Pay $500,000 Penalty for False and Misleading Advertising
Yellow Pages Marketing B.V.

June 26, 2013

As previously reported here, in March 2012, the Ontario Superior Court (the “Court”) found that a network of five national and international companies and three individuals (principals and employees of the companies) violated the Competition Act for making false and misleading statements. Amongst other orders, the Court imposed a $500,000 Administrative Monetary Penalty (“AMP”) against two individual respondents. One of the individuals challenged his  AMP in the Ontario Court of Appeal, which upheld the lower court’s finding of liability and the AMP.  The Court concluded that the AMP was reasonable considering the individual’s current financial circumstances and that the companies involved were merely vehicles for their principals. The Court explained that the AMP was not intended to be punishment, but rather was expressly aimed at promoting conduct in conformity with the purposes of the Competition Act. The Commissioner of Competition was awarded its costs for the appeal.

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