1E9Ct5D

On summary conviction, a maximumfine of up to $200,000 or a term ofimprisonment up to one year, orboth; andOn indictment, a maximum fine atthe discretion of the court or amaximum term of imprisonment of14 years, or both.Among the practices that are subject to civilpenalties are false and misleadingstatements to the public, misrepresentationsregarding the ordinary price of a product,misrepresentations as to product test resultsor public testimonials, bait and switch selling(where a product is advertised at a bargainprice but is not supplied in reasonablequantities), sales above advertised prices,and inadequate disclosure of the value ofprizes in promotional contests.If a civil offence is found to have beencommitted, possible remedies are: withdrawthe offending advertising; publish a notice ofcompliance; and/or pay an administrativemonetary penalty of up to $10 million (onfirst occurrence, individuals are subject topenalties of up to $750,000 andcorporations to penalties of up to $10million). For any subsequent offences, thepenalty increases to a maximum of $15million for corporations and $1 million forindividuals. In certain situations, an ordermay be made requiring compensation forconsumers who bought the advertisedproduct, but this would normally only occurwhen the consumers are identifiable.In addition to federal restrictions onmisleading advertising, certain products andservices are subject to provincial marketinglimitations under consumer protectionlegislation, such as the costs of borrowingdisclosure requirements imposed onlenders.Confidential Information and TradeSecretsBusinesses in possession of confidentialinformation can generally impose a legalobligation of confidentiality on other partieswho are given access to that information.This may include employees and/or otherbusinesses that obtained the information inthe course of negotiating a businessrelationship, such as a joint venture.However, this legal right can only beenforced where there is a contractualobligation or other legally-recognizedrelationship imposing obligations ofconfidentiality. In order to protect acompany’s interests, it is prudent to ensurethat parties who are given access to acompany’s confidential information sign anon-disclosure or confidentiality agreementbefore the information is disclosed.The Canadian common law also providesbusinesses with protection againstunauthorized acquisition and/or use of tradesecrets. Trade secrets are defined asinformation that is used, or may be used, inbusiness for any commercial advantage.For such information to qualify for legalprotection as a trade secret, it must not begenerally known to the public or to otherpersons who can derive economic benefitfrom its use or disclosure. Reasonableefforts must also be made by the possessorto prevent the information from beingdisclosed.A trade secret is only protected as long ascompetitors are unable to duplicate it bylegitimate and independent means, such asTrade and Business Conduct Regulation46