Copyright 2008, Blake, Cassels & Graydon LLP
Originally published in Blakes Bulletin on Competition Law, April 2008
On April 9, 2008, the Competition Bureau published an updated draft Bulletin on Corporate Compliance Programs. The Bureau is inviting interested parties to provide comments on the Bulletin by May 26, 2008.
The Bulletin provides guidance on measures that companies should consider in order to prevent or minimize their risk of contravening the Competition Act and to detect contraventions, should they occur. The Bulletin sets out the following five elements that are, in the Bureau's view, "fundamental" to a proper compliance program:
- senior management involvement and support;
- corporate compliance policies and procedures;
- training and education;
- monitoring, auditing and reporting mechanisms; and
- consistent disciplinary procedures.
The Bulletin provides a framework for the essential components of a credible and effective written compliance program.
As noted in the Bulletin, the legal, economic and reputational risks of non-compliance with the Competition Act to companies and their directors and officers can be significant. Contravention of the Competition Act, for example, can expose a business to fines and recovery of damages by private parties and, for individuals, the possibility of imprisonment. Non-compliance with the Competition Act can also result in negative publicity, loss of management time, and significant legal costs. These costs demonstrate the importance of an effective compliance program.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.