December 12, 2007 - The Canadian Competition Bureau released its study of self-regulated professions on December 11, 2007.  The Bureau's news release, "Backgrounder" and a copy of the study, Self-regulated professions: Balancing competition and regulation, are available on the Bureau's website at http://www.competitionbureau.gc.ca/epic/site/cb-bc.nsf/en/02540e.html.

The Bureau decided to examine self-regulated professions because it considers a competitive service sector to be vital for the future health of the Canadian economy.  The Bureau has noted that Canada's professions are subject to more extensive regulation than their counterparts in other countries, which may hamper their productivity and efficiency.

The Bureau's study examined the legislation, regulations and codes of practice of five specific professions – accountants, lawyers, optometrists, pharmacists and real estate agents – to determine whether these professions employ restrictions that limit access to their businesses or control the competitive conduct of their members or related markets.  The Bureau's study disclosed several types of practices/restrictions that it considers troubling, including:

• advertising regulations, and particularly those that restrict comparative advertising;
  
• suggested prices and rules regarding fee structures that can inhibit price competition and lead to higher prices, particularly when combined with a prohibition against advertising;
  
• limits on who can offer certain professional services, which lead to consumers paying higher prices or paying for more service than they really need; and
  
• uneven licensing requirements across the country that limit the number of professionals and restrict their ability to move where there is demand for their services.

According to Canada's Commissioner of Competition, Sheridan Scott, the Bureau understands that regulation plays a legitimate role in protecting consumers and meeting public policy goals.  However, it is the Bureau's hope that self-regulated professions in Canada will examine their rules and regulations with a view to revising or removing anti-competitive restrictions that harm consumers and the Canadian economy.

The Bureau is considering whether to expand its analysis to other self-regulated professions. The Bureau also plans to assess in two years what steps the five specific professions covered by its study have taken to implement its recommendations.

If you would like additional information about this topic or any  other aspect of Canadian competition law, please contact George Addy, Anita Banicevic, John Bodrug, Richard Elliott, Mark Katz, Hillel Rosen, Elisa Kearney, Christopher Margison or any other member of the Competition and Foreign Investment Review Group at Davies Ward Phillips & Vineberg LLP at (416) 863-0900 (Toronto) or (514) 841-6400 (Montréal). 

Davies Ward Phillips & Vineberg LLP, with over 235 lawyers, practises nationally and internationally from offices in Toronto, Montréal, New York and an affiliate in Paris and is consistently at the heart of the largest and most complex commercial and financial matters on behalf of its North American and overseas clients.

The information and comments herein are for the general information of the reader and are not intended as advice or opinions to be relied upon in relation to any particular circumstance. For particular applications of the law to specific situations, the reader should seek professional advice. 

www.dwpv.com

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   December 12, 2007

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