The Competition Act is federal legislation that is designed to maintain and encourage competition in the marketplace. The Act contains a number of criminal offences and also provides for certain conduct that, while not constituting a criminal offence, may be reviewable by a quasi-judicial body called the Competition Tribunal. The Act applies to virtually all sectors of business – including real estate Boards and Associations, firms, brokers, agents, independent contractors, and salespeople.

It is essential, therefore, that REALTORS® have an understanding of Canada’s competition laws and how they are applied in the real estate industry. Failure to recognize and avoid anti-competitive conduct could result in criminal prosecution, Competition Tribunal proceedings, and civil court actions for damages. The time and expense involved in defending yourself in these proceedings is obvious, however the damage to the reputation of an individual implicated in anti-competitive behaviour may also impose very real costs.

This document is not intended to be an exhaustive or technical statement of the law. Rather, it is designed to provide simple, clear and understandable guidelines for compliance with the provisions of the Competition Act that are of day-to-day concern to REALTORS®. In fact, it is through everyday interaction and conversations with customers, clients and competitors that members are most at risk of becoming implicated in competition law investigations and litigation. Statements and actions that are entirely innocuous may be misunderstood or taken out of context and lead to an investigation, which can be time-consuming and extremely expensive.

The relevant provisions of the Competition Act may be simplified to three basic rules:

• Don’t collude. Make independent business decisions without discussion, consultation, or
  agreement with competitors.
• Don’t discriminate. Do not discriminate against or refuse to do business with competitors
  or other persons because of their pricing policies.
• Don’t mislead. Do not mislead the public in your advertising. Ensure that your advertising is
  truthful, accurate and, if making performance claims or statistical claims, supported by facts.

By understanding and following these three simple rules in dealing with competitors, customers, clients, and real estate Boards and Associations, REALTORS® can avoid issues that generate concerns involving compliance with the Competition Act.