Government Regulations Flashcards
Environmental regulation can promote economic development, growth and innovation? How?
Environmental regulation can indeed promote economic development and innovation. By setting standards and rules, it creates a framework that encourages companies to innovate to comply with these regulations. This can lead to the development of new technologies and solutions, such as renewable energy or energy-efficient products, which can create new markets and job opportunities. Additionally, regulations can lead to cost savings through increased efficiency and can also enhance a company’s reputation, making its products more attractive to consumers. Moreover, by mitigating environmental risks, regulation can ensure long-term economic stability and growth.
Why is it important and why do businesses want laws to ensure fair competition?
No dejar que monopolies don’t let compete other companies. Fair competition laws are important as they ensure a level playing field for businesses, fostering innovation and consumer protection. Businesses want these laws to prevent unfair practices and ensure a healthy, competitive market.
Why is “impact on the consumer” the focus of competition cases?
Because the main goal of competition laws and regulations is to protect consumer welfare. This ensures that they will benefit from fair prices, high-quality products, etc. This aim to maintain healthy market competition, ensuring that benefits of economic activities are passed on to consumers rather than being confined to dominant market players.
What business practices interfere with competition?
(1) restraint of trade clauses in contracts including employment contracts
(2) mergers and market domination through monopolies
(3) market manipulation through collusion (eg price-fixing)
What does the Competition Act does to prevent monopoly and promote competition?
It uses criminal and civil penalties by (1) preventing conspiracy to manipulate markets through cooperation among competitors such as bid rigging (businesses agree to bid a certain price), (2) abuse of a dominant position such as price fixing (gas stations all agree to sell gas at the same price), and (3) certain mergers that create a dominant market position (Amazon?) and the Act provides remedies (stop to anti-competitive practice, dissolve the merger, hold the merged companies separate)
What is price fixing?
Is an illegal practice where businesses agree on prices for their products or services instead of competing against each other. This collusion violates antitrust laws as it prevents the natural market dynamics of supply and demand from setting prices, often leading to higher prices for consumers. Agreements about this can be a violation of the Competition Act.
What is abuse of market position?
Often termed as “abuse of market dominance” or “abuse of dominant position”, occurs when a company with a substantial share of a market uses is power to engage in practices that restrict competition. This can include imposing unfair prices, limiting production, hindering innovation, or applying different conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage.
What does Laws on consumer protection do?
Laws on consumer protection (federally and provincially) protect consumers against false or deceptive claims about products or services, including claims or sales made online.
What is the process for a merger in this context?
The companies would have to inform the Competition Bureau (government) of the proposed merger and the Bureau would investigate taking a look at size of market share and likely impact of the merger, including on consumer prices.
What are the main areas of consumer protection that businesses need to be aware of?
Businesses obligations in respect of:
- Advertising and marketing
- Product Safety
- Sales of Goods Act
- Information Disclosure
- Electronic Commerce
What is misleading advertising or deceptive marketing?
Refers to the use of false, misleading, or unproven information to promote products or services. This type of advertising deceives or has the potential to deceive consumers, often leading them to make purchasing decisions based on incorrect assumptions or information. It can include exaggerations, false claims about a product’s benefits, hidden fees, or misleading comparisons with competitors’ products.
Which regulations were created for consumer protection?
Natural Health Product Regulations
Spam and Consent: Can businesses send electronic messages to encourage commercial activity?
No. Businesses cannot send electronic messages to encourage participation in a commercial activity (CEM) unless you have the express consent from the recipient (cannot rely on implied consent) and businesses must provide way to “unsubscribe” at no cost.
What happens if businesses do not obtain express consent and still spam?
They can be sued for damages up to $200 for each non-compliant CEM up to maximum of $1 million per day, and CEOs, officers and directors of a company can be held personally liable of the violation.
Why create rules about environmental protections and harm?
Rules about environmental protections are created to prevent harm to ecosystems, preserve natural resources, and ensure public health and safety. These regulations aim to mitigate environmental degradation, such as pollution and habitat destruction, which can have significant long-term consequences for both the planet and human populations.
