Targeted Enforcement Approach to Markets: T.E.A.M. Regulatory Craft in Nova Scotia

1. Enabling Competition and Informed Consumer Choice through a Targeted Enforcement Approach to Markets (“T.E.A.M.”) Regulatory Craft in Nova Scotia 2007 November 21, 2007 Adam Zimmerman Fair Business Practices Branch

2. The Competition Bureau Canada • Headed by the Commissioner of Competition • Our Mission Statement: • The Competition Bureau is an independent law enforcement agency. • We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice. 2

3. Fair Business Practices Branch • Promotes fair competition by: • Discouraging deceptive business practices such as: • Mass Market Fraud • Misleading Advertising and Labelling • Encouraging the provision of sufficient information to enable informed consumer choice • Administers and enforces: • Misleading representations and deceptive marketing practices provisions of the Competition Act • The Consumer Packaging and Labelling Act, the Precious Metals Marking Act, the Textile Labelling Act 3

4. Motivation & Need • Previous approach unfocused: • Complaint driven and ad hoc • Resources can easily be spread too thinly over too many issues • Branch may deal with one or two players but not the entire issue • Success not adequately measured - - generally move on to the next case • Few teams take ownership of an issue 4

5. Objective & Conceptual Framework • Objective to develop improved Act-neutral FBPB framework in approaching misleading advertising and labeling • Conceptual Framework has three components • Identifying issues that pose greatest risk to consumers and competitors through risk analysis • Focusing resources on the high risk issues • Responsive allocation of resources: enforcement, compliance, education and outreach initiatives appropriate to each specific issue 5

6. T.E.A.M. Overview: Flowchart Marketplace Intelligence Risk Assessment High Risk Issues Identified T.E.A.M. Operational Plans Implementation 6

7. Marketplace Intelligence • Identify issues through more proactive marketplace intelligence: • Complaints • Literature review • Stakeholder consultations • Media monitoring • Partnerships – including academics • Facilitates performance measurement • Create baseline metrics at outset • Measure change to determine efficacy of actions and tools 7

8. Risk Analysis • Analysis narrows the field of issues and enables a targeted approach • Issues are assessed according to the risks they pose to both consumers and competitors • On-going risk assessments performed as the market evolves • Risks not static but dynamic so assessments may change 8

9. High Risk Issues Identified Likelihood of Risk Happening Consequences of Risk 9

10. T.E.A.M. Operational Plans • Results-oriented intervention to high risk issues • Dedicated teams develop operational plan for issue, including a blend of enforcement, education and outreach 10

11. Implementation • Resources focused on high risk issues, with the goal of having a significant impact • Targets the whole problem • Levels the playing field • Significant emphasis not just on enforcement, but also on prevention through outreach and education 11

12. Individual Teams • Ownership: team takes ownership of the entire issue, rather than an isolated case • Empowerment: team empowered to develop own operational plan to tack issue and, once approved, to implement the plan • Creativity: creative approaches and solutions to problem as part of mix or responses to each issue 12

13. Individual Teams (2) • Team-focused: team expected to work together to develop implementation plan to build expertise about marketplace issues • Dynamic: as the team expertise increases, the operational plan can be modified to address emerging trends and changing marketplace tactics 13

14. Practical Application of T.E.A.M. • Development of the Fraudulent Health Claims T.E.A.M. based on: • Bureau priorities • Enforcement – target online fraudulent and misleading health performance claims • Advocacy – health • Past health initiatives with hallmarks of T.E.A.M. • Weight-loss • Diabetes • UV Protection Claims • “Light” and “Mild” Cigarettes 14

15. Fraudulent Health Claims T.E.A.M. • Target: Fraudulent Cancer Related Performance Claims • Intelligence/ Risk Assessment tells us that: • Cancer leading cause of death in Canada • 8 out of 10 online consumers look for health info on the net • 44% likely to encounter a site selling a product or service • 75% don’t check the source or date the info was posted • Over 50% say the info they found impacted how they cared for themselves or someone else • High risk to consumers 15

16. Fraudulent Health Claims T.E.A.M (2) • Operational Plan: • Dedicated team to plan around • Enforcement aimed both online and offline • Develop consumer education and outreach products • Develop and strengthen strategic partnerships 16

17. Fraudulent Health Claims T.E.A.M (3) • Implementation → Outreach • Educate consumers about fraudulent Cancer cure/treatment claims • The challenged is to do this without taking hope away from Cancer patients and their families, or alternatively giving them a false sense of hope • Using strategic partnerships to overcome these challenges 17