all-world1
Member
Just an article I found in today's paper......to go along with alll those previous threads on high fuel costs.
Gas firms guilty of price-fixing
Competition Bureau probing similar illegal activity in West
By: Jason Magder, Jack Branswell and Ken Meaney
Updated: June 13 at 12:45 AM CDT
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.
Ultramar was fined $1.85 million after pleading guilty to gasoline price-fixing. Eight others are fighting the charges. (Paul Chiasson / The Canadian Press )
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 wiretap 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.
Forget said he doesn't know of a wider conspiracy to fix prices.
"I can assure you that what was going on there is not going on elsewhere -- not with Ultramar, anyway."
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."
-- Canwest News Service
Gas firms guilty of price-fixing
Competition Bureau probing similar illegal activity in West
By: Jason Magder, Jack Branswell and Ken Meaney
Updated: June 13 at 12:45 AM CDT
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 wiretap 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.
Forget said he doesn't know of a wider conspiracy to fix prices.
"I can assure you that what was going on there is not going on elsewhere -- not with Ultramar, anyway."
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."
-- Canwest News Service
