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Parliamentary Secretary to the Minister of Veterans Affairs and Associate Minister of National Defence

Randeep Sarai

  • Member of Parliament
  • Parliamentary Secretary to the Minister of Veterans Affairs and Associate Minister of National Defence
  • Liberal
  • Surrey Centre
  • British Columbia
  • Voting Attendance: 67%
  • Expenses Last Quarter: $147,142.20

  • Government Page
Context: House Hansard - 312 - May/9/24
Mr. Randeep Sarai (Parliamentary Secretary to the Minister of Veterans Affairs and Associate Minister of National Defence, Lib.)
Mr. Speaker, last November, the government introduced Bill C-59, the fall economic statement implementation act of 2023. Among other measures, Bill C-59 proposed significant amendments to our Competition Act. I am proud to share that the Standing Committee on Finance has recently completed its review of the bill and has made several amendments to further strengthen existing proposals. For many years, Canada's markets have been described as overly concentrated and not competitive enough. In fact, the landmark Competition Bureau study last year, based on Statistics Canada data and analysis from a University of Toronto professor, made critical findings in this respect, showing that competitive intensity has been on the decline over the past two decades, which is reflected in a number of important indicators. These trends have been exacerbated by the inflationary pressures our country is facing following a global pandemic and increasing geopolitical uncertainty. Bill C-59 was introduced to help build a stronger domestic economy through more competition and contestable markets to bring lower prices, more choice and better product quality for consumers across all sectors. The proposed amendments to the Competition Act in Bill C-59 arose out of a comprehensive public consultation conducted from November 2022 to March 2023. Having heard from stakeholders, the government introduced Bill C-56, the Affordable Housing and Groceries Act, which was ultimately passed by this Parliament in December 2023. Completing its response to the consultation, the government then presented a more extensive set of reforms by way of Bill C-59. The measures in this bill include strengthening provisions with respect to merger review, enhancing protections for consumers, workers and the environment, and broadening opportunities for private enforcement. We should not underestimate just how critical these reforms are for modernizing our laws and promoting competitive markets. The commissioner of competition has stated on multiple occasions that the amendments in Bill C-56 and Bill C-59 are “generational.” I would therefore like to highlight some important reforms that have been proposed. To begin with, anti-competitive collaborations between competitors would be under increased scrutiny as the bureau would be able to examine and, if necessary, seek penalties against coordinated conduct that lessens competition. Up until now, at worst the participants would be told to stop what they are doing. The expansion of private enforcement and the ability of the Competition Tribunal to issue monetary payment orders in cases initiated by private parties are also significant changes to our existing enforcement approach. By relaxing the requirements to bring a case and providing an incentive to bring matters directly to the Competition Tribunal, there would be greater accountability throughout the marketplace and more action on cases that the Competition Bureau may not be able to take. More competition is always beneficial to consumers, but the bill also takes some direct approaches to protect consumers. These include strengthening provisions on deceptive marketing, such as applying requirements more broadly so vendors must present the full cost of a product or service up front without holding back mandatory fees, known as “drip pricing.” The law is further being refined to make it easier to ensure that advertised rebates are authentic when compared to a vendor's past prices. Businesses making environmental claims about their products would be required to have undertaken adequate and proper testing before advertising their benefits. Together, these changes would ensure that consumers have accurate and complete information about products and services in order to make informed purchasing decisions. I would also like to highlight barriers to repair, which have been an issue of great importance in recent years. Where manufacturers refuse to provide the means of diagnosis or repair in a way that harms competition, remedial orders would be available to require them to furnish what is necessary. This could help a wider variety of service providers offer more options to consumers when choosing where to repair their products. On top of everything I have mentioned so far, anti-reprisal provisions would also ensure that the system can function. These are included to ensure that workers and small businesses are protected from potential retaliation when they work with the authorities to address anti-competitive behaviour and violations of the act by other parties. These reforms, along with various administrative changes, aimed at facilitating efficient enforcement of the act, are crucial to ensuring that Canadian markets remain competitive and in line with international practices. It has been acknowledged by all members of the House that our competition framework requires reform. My colleagues have engaged in thoughtful discussion on ways to modernize the existing marketplace framework. Nothing exemplifies this better than the enthusiasm shown by members of all parties to strengthen these provisions of Bill C-59 once it reaches the Standing Committee on Finance, especially in light of recommendations made by the commissioner of competition. The amendments adopted in committee notably relate to merger review, deceptive marketing, and refusal to repair. The committee members were quite interested in enhancing protections for consumers and the environment, and these are the ones that I would like to draw attention to now. First, clarifications were made to ensure that in the Competition Act's various provisions on drip pricing, the only amounts that could be excluded from the upfront price are those imposed by law directly on the purchaser of the product, such as sales tax. Next, with the committee's amendment, sellers advertising reduced prices would now be required to be able to prove that regular price is authentic in order to publicize their discounts. On the topic of doubtful environmental claims, or so-called greenwashing, the law would also require that those who make environmental claims about their businesses or business activities, not only specific products, must have adequate and proper substantiation in hand to support such claims. On refusal to repair, the committee added some helpful clarifications to ensure that the scope of provision was broad enough. In sum, amidst the period of inflation and growing affordability concerns, it is crucial that our markets remain resilient and open to competition. Bill C-59 would reform Canada's competitive landscape, encourage greater innovation, and improve affordability for Canadians. Therefore, I would like to urge my colleagues from all sides of the House to work together to expeditiously pass this crucial piece of legislation.
1057 words
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