Safa Enterprises Inc. v. Imperial Tobacco Company Limited

The owner of a convenience store brought an action against Imperial Tobacco Company for violation of Canada’s pricing laws. The convenience store was not allowed to participate in Imperial’s preferred pricing program. However, a competing convenience store was part of the program, which allowed the competing store to sell cigarettes at a lower price. The Competition Tribunal dismissed the case, finding that the convenience store bringing the action was unable to prove that Imperial’s alleged discrimination (by not allowing the store to participate in the pricing program) was because of the store’s low prices.

Safa Enterprises Inc. v. Imperial Tobacco Company Limited, 2013 Comp. Trib. 19, File No.: CT-2013-007 (2013).

  • Canada
  • Dec 9, 2013
  • Competition Tribunal
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Parties

Plaintiff Safa Enterprises Inc.

Defendant Imperial Toacco Company Limited

Legislation Cited

The Competition Act

Related Documents

Type of Litigation

Tobacco Control Topics

Substantive Issues

Type of Tobacco Product

None

"However, it is not the low pricing policy of Imperial which is important at this stage, but that of the applicant who is seeking leave. The Applicant’s low pricing policy, described above, is not the policy the legislator had in mind when drafting section 76 of the Act. The mischief to which the provision is directed (to use the example of the present case) would be the refusal of Imperial to supply Hasty New Market because Hasty re-sells Imperial’s products at a price to which Imperial objects. In the circumstances, while the Tribunal understands that the Applicant faces a difficult situation, it finds that there is not, on the record before the Tribunal, reasonable grounds to believe that Imperial’s conduct could be subject to an order under section 76. The application will therefore be dismissed."