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hoduck
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Thursday, June 12, 2008
Competition Bureau reveals gas price fixing scam in Que.
MONTREAL - For the first time in Canadian history, gas companies were
found guilty of fixing prices in four cities east of Montreal - and the
Competition Bureau says it is investigating to see if Canadians in other
centres are being ripped off.
"The Competition Bureau's investigation into potential price-fixing in the
retail gasoline market continues in other markets in Canada," the bureau
said in a statement.
The agency brought criminal charges against 11 companies and 13 people
tied to those Quebec companies. Three companies pleaded guilty.
Ultramar, one of the largest marketers and refiners of petroleum products
in the country, was among the companies that pleaded guilty and was fined
$1.85 million. One of its regional sales representatives, Jacques Ouellet,
was fined $50,000 by the Competition Bureau and fired by Ultramar.
Bureau commissioner Sheridan Scott said she believes 21 out of 22 gas
stations in Thetford Mines, 23 out of 24 stations in Victoriaville, and 56
out of 65 stations in Sherbrooke co-operated to fix prices from 2005 to
2007. The other community involved was Magog.
A company spokesman said Ultramar is shocked an employee was found to have
participated in the cartel.
"All our people in the sales department know this is something that's
prohibited. We have a strict code of conduct," said Louis Forget,
Ultramar's vice-president of public and government affairs. "So to have
one of our employees involved in something like that is a shock for
everybody."
Forget said Ultramar pleaded guilty to the charges once it heard the
evidence against Ouellet. For the eight companies that pleaded not guilty,
the case will go to criminal trial in Quebec Superior Court.
The other companies that pleaded guilty, Les Petroles Therrien Inc. and
Distributions petrolieres Therrien Inc., operating under the banner
Petro-T, were both fined $179,000. The companies that pleaded not guilty
sell under the banners of Esso, Shell, Petro Canada, Irving, Olco and
Sonerco.
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"This is one of the top fines a judge has issued for a domestic cartel,"
Scott said at a news conference in a downtown Montreal hotel Thursday.
Scott said the companies in question phoned each other in advance to
determine a price and a time to change to that price.
She said the bureau began its investigation after receiving a tip about
price fixing in the Victoriaville area, and then obtained a warrant to
wire tap the phone calls of the gas stations.
"We used electronic surveillance," she said. "Thousands of phone calls
were intercepted, and there were more than 90 search warrants issued to
gather evidence."
Forget said Ouellet lied to the head office in order to get them to change
their price ahead of when they should.
"His role was to go around and check if competitors had increased their
price, and once they did, we would move our prices up," Forget said.
"Instead, he was talking on the phone to competitors and telling us, 'the
price is up.' He was lying."
Scott said she's proud of the investigation her bureau conducted.
She would not say whether she believes price fixing to be a widespread
occurrence. However, she said it's very difficult to prove such activity.
Because it's a criminal matter, the crime must be proven beyond a
reasonable doubt.
Michel Arnold, the executive director of Option Consommateurs, said he'd
like Canada to stiffen laws and increase fines against price fixing.
He encouraged consumers to complain to the Competition Bureau if they
believe they have evidence of price fixing.
Liberal MP Dan McTeague called this "an important step that the bureau has
taken."
But he said the problem with gas prices in Canada is that "there is a lack
of competition."
""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
In times of universal deceit, telling the truth will be a revolutionary act.
-- George Orwell
""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
Competition Bureau reveals gas price fixing scam in Que.
MONTREAL - For the first time in Canadian history, gas companies were
found guilty of fixing prices in four cities east of Montreal - and the
Competition Bureau says it is investigating to see if Canadians in other
centres are being ripped off.
"The Competition Bureau's investigation into potential price-fixing in the
retail gasoline market continues in other markets in Canada," the bureau
said in a statement.
The agency brought criminal charges against 11 companies and 13 people
tied to those Quebec companies. Three companies pleaded guilty.
Ultramar, one of the largest marketers and refiners of petroleum products
in the country, was among the companies that pleaded guilty and was fined
$1.85 million. One of its regional sales representatives, Jacques Ouellet,
was fined $50,000 by the Competition Bureau and fired by Ultramar.
Bureau commissioner Sheridan Scott said she believes 21 out of 22 gas
stations in Thetford Mines, 23 out of 24 stations in Victoriaville, and 56
out of 65 stations in Sherbrooke co-operated to fix prices from 2005 to
2007. The other community involved was Magog.
A company spokesman said Ultramar is shocked an employee was found to have
participated in the cartel.
"All our people in the sales department know this is something that's
prohibited. We have a strict code of conduct," said Louis Forget,
Ultramar's vice-president of public and government affairs. "So to have
one of our employees involved in something like that is a shock for
everybody."
Forget said Ultramar pleaded guilty to the charges once it heard the
evidence against Ouellet. For the eight companies that pleaded not guilty,
the case will go to criminal trial in Quebec Superior Court.
The other companies that pleaded guilty, Les Petroles Therrien Inc. and
Distributions petrolieres Therrien Inc., operating under the banner
Petro-T, were both fined $179,000. The companies that pleaded not guilty
sell under the banners of Esso, Shell, Petro Canada, Irving, Olco and
Sonerco.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
"This is one of the top fines a judge has issued for a domestic cartel,"
Scott said at a news conference in a downtown Montreal hotel Thursday.
Scott said the companies in question phoned each other in advance to
determine a price and a time to change to that price.
She said the bureau began its investigation after receiving a tip about
price fixing in the Victoriaville area, and then obtained a warrant to
wire tap the phone calls of the gas stations.
"We used electronic surveillance," she said. "Thousands of phone calls
were intercepted, and there were more than 90 search warrants issued to
gather evidence."
Forget said Ouellet lied to the head office in order to get them to change
their price ahead of when they should.
"His role was to go around and check if competitors had increased their
price, and once they did, we would move our prices up," Forget said.
"Instead, he was talking on the phone to competitors and telling us, 'the
price is up.' He was lying."
Scott said she's proud of the investigation her bureau conducted.
She would not say whether she believes price fixing to be a widespread
occurrence. However, she said it's very difficult to prove such activity.
Because it's a criminal matter, the crime must be proven beyond a
reasonable doubt.
Michel Arnold, the executive director of Option Consommateurs, said he'd
like Canada to stiffen laws and increase fines against price fixing.
He encouraged consumers to complain to the Competition Bureau if they
believe they have evidence of price fixing.
Liberal MP Dan McTeague called this "an important step that the bureau has
taken."
But he said the problem with gas prices in Canada is that "there is a lack
of competition."
""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""
In times of universal deceit, telling the truth will be a revolutionary act.
-- George Orwell
""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""