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MINUTES OF PROCEEDINGS

Meeting No. 24

Thursday, February 17, 2000

The Standing Committee on Industry met at 9:09 a.m. this day, in Room 371, West Block, the Chair, Susan Whelan, presiding.

Members of the Committee present: Pierre Brien, John Cannis, Antoine Dubé, Marlene Jennings, Jim Jones, Dan McTeague, Ian Murray, Charlie Penson, Jerry Pickard and Susan Whelan.

Acting Members present: John McKay for Walt Lastewka; Alex Shepherd for Gurbax Malhi; Roy Cullen for Gerry Byrne; John Solomon for Nelson Riis.

Other Member present: Roger Gallaway.

In attendance: From the Library of Parliament: Gérald Lafrenière, Research Officer.

Witnesses: From the Department of Industry: Johanne d'Auray, Deputy Commissioner of Competition, Competition Bureau; Don Mercer, Head, Amendments Unit; Micheline Langlois, Legal Counsel. From the Department of Finance: Frank Swedlove, Executive Director, Financial Sector Review Group; Annette Gibbons, Chief, Financial Sector Policy Branch; Rhoda Attwood, General Counsel. From the Department of Canadian Heritage: Jean Guérette, Director General, Broadcasting Policy and Innovation.

Pursuant to its Order of Reference of Thursday, October 28, 1999, the Committee resumed consideration of Bill C-276, An Act to amend the Competition Act, 1998 (negative option marketing) (See Minutes of Proceedings, Thursday, November 18, 1999, Meeting No. 7).

The witnesses made statements and answered questions.

At 10:05 a.m., the sitting was suspended.

At 10:20 a.m., the sitting resumed.

The Committee proceeded to Clause-by-Clause consideration of the Bill.

On Clause 1

John Cannis moved, - That Bill C-276, in Clause 1, be amended by replacing lines 5 and 6 on page 1 with the following:

"adding the following after section 74.05:

Definitions

74.051 (1) The definitions in this subsection"

After debate, the question being put on the amendment, it was adopted on a recorded division:

YEAS (10)

Roy Cullen

John Cannis

Dan McTeague

Marlene Jennings

John McKay

Alex Shepherd

Ian Murray

Jerry Pickard

Charlie Penson

Jim Jones

NAYS (1)

Antoine Dubé

Roy Cullen moved, - That Bill C-276, in Clause 1, be amended by deleting line 14 on page 1.

After debate, the question being put on the amendment, it was negatived on a recorded division.

YEAS ( 4)

Roy Cullen

John Cannis

Alex Shepherd

Jerry Pickard

NAYS (5)

Dan McTeague

Marlene Jennings

Ian Murray

Charlie Penson

Jim Jones

John Cannis moved, - That Bill C-276, in Clause 1, be amended by replacing lines 15 to 25 on page 1 with the following:

"(b) a broadcasting undertaking within the meaning of the Broadcasting Act;

and

And the question being put on the amendment it was agreed to, on division.

John Cannis moved, - That Bill C-276, in Clause 1, be amended by replacing lines 3 to 5 on page 2 with the following:

Negative option marketing without notice and express consent

"(2) An enterprise engages in reviewable conduct if it charges or receives from a client any payment for the provision or sale of a

And the question being put on the amendment it was agreed to, on division.

John Cannis moved, - That Bill C-276, in Clause 1 be amended by replacing lines 6 to 8 on page 2 with the following:

"(a) the enterprise gives the client at least once a month for three consecutive months a notice, by any means of communication, including electronic or digital means of communication, containing"

And the question being put on the amendment it was agreed to, on division.

John Cannis moved, - That Bill C-276, in Clause 1 be amended by replacing lines 16 to 18 on page 2 with the following:

"the new service by responding to the enterprise by the means described in the notice, which may be any means of communication, including electronic or digital means of communication, and"

And the question being put on the amendment it was agreed to, on division.

John Cannis moved, - That Bill C-276, in Clause 1 be amended by replacing line 21 on page 2 with the following:

"(b) the enterprise has received, by any means of communication, including electronic or digital means of communication, the express"

And the question being put on the amendment it was agreed to, on division.

John Cannis moved, - - That Bill C-276, in Clause 1 be amended by replacing lines 28 to 36 on page 2 and lines 1 to 12 on page 3 with the following:

"charged to the client;

(b) where the new service is not the subject of a separate and specific fee; or

(c) where the enterprise is required by law to provide or sell the new service and is authorized to charge a fee to the client for that service.

Exception

(4) Paragraph (2)(a) does not apply where the client has provided to the enterprise, by any means of communication, including electronic or digital means of communication, an express consent for the purchase or reception of the new service from the enterprise."

And the question being put on the amendment it was agreed to, on division.

Clause 1, as amended, was agreed to, on division.

On Clause 2

John Cannis moved, - That Bill C-276, be amended by adding in new Clause 2.1 after line 26 on page 3 as follows:

"2.1 The portion of subsection 74.1(6) of the Act before paragraph (a) is replaced by the following:

Meaning of subsequent order

(6) For the purposes of paragraph (1)(c), an order made against a person in respect of conduct that is reviewable under paragraph 74.01(1)(a), (b) or (c), subsection 74.01(2) or (3) or section 74.02, 74.04, 74.05, 74.051 or 74.06 is a subsequent order if"

And the question being put on the amendment it was agreed to, on division.

Clause 2, as amended, was agreed to, on division.

On Clause 3

John Cannis moved, - That Bill C-276, in Clause 3, be amended by replacing lines 29 to 37 on page 3 with the following:

Annual report

"127. (1) The Commissioner shall report annually to the Minister on

the operation of the Acts referred to in subsection 7(1); and

the number of complaints received from the public relating to reviewable conduct described in section 74.051."

And the question being put on the amendment it was agreed to, on division.

Clause 3, as amended, was agreed to, on division.

On Clause 4

John Cannis moved, - That Bill C-276, in Clause 4, be amended by replacing line 3 on page 4 with the following:

Regulations

"128. (1) Subject to subsections (1.1) and (1.2), the"

And the question being put on the amendment it was agreed to, on division.

John Cannis moved, - That Bill C-276, in Clause 4, be amended by replacing line 9 on page 4 with the following:

""service" in section 74.051 any service, other than a licensed broadcasting service, that, in the"

And the question being put on the amendment it was agreed to, on division.

John Cannis moved, - That Bill C-276, in Clause 4, be amended by adding after line 16 on page 4 the following:

Regulations

"(1.2) The Governor in Council may, by regulation, on the recommendation of the Minister of Canadian Heritage, exempt from the definition of "service" in section 74.051 any licensed service distributed on a broadcasting undertaking that, in the opinion of the Governor in Council, should be exempted in order to achieve the objectives set out in subsection 3(1) of the Broadcasting Act

Consultation with CRTC

(1.3) The Minister of Canadian Heritage shall consult with the Canadian Radio-television and Telecommunications Commission before recommending a regulation to the Governor in Council under subsection (1.2)."

And the question being put on the amendment it was agreed to, on division.

John Cannis moved, - That Bill C-276, in Clause 4, be amended by replacing line 19 on page 4 with the following:

"poses to make under subsection (1), (1.1) or (1.2)"

And the question being put on the amendment it was agreed to, on division.

John Cannis moved, - That Bill C-276, in Clause 4, be amended by replacing, in the English version, lines 23 and 24 on page 4 with the following:

"shall be given for interested persons to make representations with respect thereto."

And the question being put on the amendment it was agreed to, on division.

Clause 4, as amended, was agreed to on division.

With unanimous consent it was agreed to resume consideration of Clause 2.

Clause 2 as originally proposed was negatived.

Clauses 5 to 8 were negatived, on division and subsequent Clauses were renumbered.

On Clause 9

John Cannis moved, - That Bill C-276, in Clause 9, be amended by replacing lines 27 to 29 on page 6 with the following:

Coming into force

"9. This Act comes into force three months after the day on which it is assented to."

And the question being put on the amendment it was agreed to, on division.

Clause 9 as amended, was agreed to, on division.

On the Title

John Cannis moved, - That Bill C-276, in the long title, be amended by replacing the first line on page 1 with the following:

"An Act to amend the Competition Act''

And the question being put on the amendment it was agreed to, on division.

The Title, as amended, carried on division.

The Bill, as amended, carried on division.

ORDERED, - That the Chair report Bill C-276, as amended, to the House as the Second Report of the Committee.

ORDERED, - That Bill C-276, An Act to amend the Competition Act, 1998 (negative option marketing), as amended, be reprinted for the use of the House of Commons at Report Stage.

At 11:18 a.m., the Committee adjourned to the call of the Chair.

Richard Rumas

Clerk of the Committee