Bill C-20

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	(2) Subsections 52(3) and (4) of the English version of the Act are replaced by the following:
Deemed representa- tion to public	(3) Subject to subsection (2), a person who, for the purpose of promoting, directly or indirectly, the supply or use of a product or any business interest, supplies to a wholesaler, retailer or other distributor of a product any material or thing that contains a representation of a nature referred to in subsection (1) is deemed to have made that representation to the public.
General impression to be considered	(4) In a prosecution for a contravention of this section, the general impression conveyed by a representation as well as its literal meaning shall be taken into account in determining whether or not the representation is false or misleading in a material respect.
	(3) Paragraph 52(5)(b) of the Act is replaced by the following:
	(b) on summary conviction, to a fine not exceeding $200,000 or to imprisonment for a term not exceeding one year, or to both.
	(4) Section 52 of the Act is amended by adding the following after subsection (5):
Reviewable conduct	(6) Nothing in Part VII.1 shall be read as excluding the application of this section to a representation that constitutes reviewable conduct within the meaning of that Part.
Duplication of proceedings	(7) No proceedings may be commenced under this section against a person against whom an order is sought under Part VII.1 on the basis of the same or substantially the same facts as would be alleged in proceedings under this section.
	13. The Act is amended by adding the following after section 52:
Definition of ``telemarket- ing''	52.1 (1) In this section, ``telemarketing'' means the practice of using interactive telephone communications for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of promoting, directly or indirectly, any business interest.
Required disclosures	(2) No person shall engage in telemarketing unless
	(a) disclosure is made, in a fair and reasonable manner at the beginning of each telephone communication, of the identity of the person on behalf of whom the communication is made, the nature of the product or business interest being promoted and the purposes of the communication;
	(b) disclosure is made, in a fair, reasonable and timely manner, of the price of any product whose supply or use is being promoted and any material restrictions, terms or conditions applicable to its delivery; and
	(c) disclosure is made, in a fair, reasonable and timely manner, of such other information in relation to the product as may be prescribed by the regulations.
Deceptive telemarket- ing	(3) No person who engages in telemarketing shall
	(a) make a representation that is false or misleading in a material respect;
	(b) conduct or purport to conduct a contest, lottery or game of chance, skill or mixed chance and skill, where
	(i) the delivery of a prize or other benefit to a participant in the contest, lottery or game is, or is represented to be, conditional on the prior payment of any amount by the participant, or
	(ii) adequate and fair disclosure is not made of the number and approximate value of the prizes, of the area or areas to which they relate and of any fact within the person's knowledge, that affects materially the chances of winning;
	(c) offer a product at no cost, or at a price less than the fair market value of the product, in consideration of the supply or use of another product, unless fair, reasonable and timely disclosure is made of the fair market value of the first product and of any restrictions, terms or conditions applicable to its supply to the purchaser; or
	(d) offer a product for sale at a price grossly in excess of its fair market value, where delivery of the product is, or is represented to be, conditional on prior payment by the purchaser.
General impression to be considered	(4) In a prosecution for a contravention of paragraph (3)(a), the general impression conveyed by a representation as well as its literal meaning shall be taken into account in determining whether or not the representation is false or misleading in a material respect.
Exception	(5) The disclosure of information referred to in paragraph (2)(b) or (c) or (3)(b) or (c) must be made during the course of a telephone communication unless it is established by the accused that the information was disclosed within a reasonable time before the communication, by any means, and the information was not requested during the telephone communication.
Due diligence	(6) No person shall be convicted of an offence under this section who establishes that the person exercised due diligence to prevent the commission of the offence.
Offences by employees or agents	(7) Notwithstanding subsection (6), in the prosecution of a corporation for an offence under this section, it is sufficient proof of the offence to establish that it was committed by an employee or agent of the corporation, whether or not the employee or agent is identified, unless the corporation establishes that the corporation exercised due diligence to prevent the commission of the offence.
Liability of officers and directors	(8) Where a corporation commits an offence under this section, any officer or director of the corporation who is in a position to direct or influence the policies of the corporation in respect of conduct prohibited by this section is a party to and guilty of the offence and is liable to the punishment provided for the offence, whether or not the corporation has been prosecuted or convicted, unless the officer or director establishes that the officer or director exercised due diligence to prevent the commission of the offence.
Offence and punishment	(9) Any person who contravenes subsection (2) or (3) is guilty of an offence and liable
	(a) on conviction on indictment, to a fine in the discretion of the court or to imprisonment for a term not exceeding five years, or to both; or
	(b) on summary conviction, to a fine not exceeding $200,000 or to imprisonment for a term not exceeding one year, or to both.
Sentencing	(10) In sentencing a person convicted of an offence under this section, the court shall consider, among other factors, the following aggravating factors:
	(a) the use of lists of persons previously deceived by means of telemarketing;
	(b) characteristics of the persons to whom the telemarketing was directed, including classes of persons who are especially vulnerable to abusive tactics;
	(c) the amount of the proceeds realized by the person from the telemarketing;
	(d) previous convictions of the person under this section or under section 52 in respect of conduct prohibited by this section; and
	(e) the manner in which information is conveyed, including the use of abusive tactics.
	14. Section 53 of the Act is repealed.
1992, c. 14, s. 1	15. Paragraph 55(3)(b) of the Act is replaced by the following:
	(b) on summary conviction, to a fine not exceeding $200,000 or to imprisonment for a term not exceeding one year, or to both.
1992, c. 14, s. 1	16. Paragraph 55.1(3)(b) of the Act is replaced by the following:
	(b) on summary conviction, to a fine not exceeding $200,000 or to imprisonment for a term not exceeding one year, or to both.
R.S., c. 27 (1st Supp.), s. 189, c. 19 (2nd Supp.), s. 35(F)	17. Sections 56 to 59 of the Act are repealed.
	17.1 Section 60 of the Act is replaced by the following:
Defence	60. Section 54 does not apply to a person who prints or publishes or otherwise distributes a representation or an advertisement on behalf of another person in Canada if he or she establishes that he or she obtained and recorded the name and address of that other person and accepted the representation or advertisement in good faith for printing, publishing or other distribution in the ordinary course of his or her business.
R.S., c. 19 (2nd Supp.), s. 38	18. Subsections 65(1) and (2) of the Act are replaced by the following:
Contraven- tion of Part II provisions	65. (1) Every person who, without good and sufficient cause, the proof of which lies on that person, fails to comply with an order made under section 11 and every person who contravenes subsection 15(5) or 16(2) is guilty of an offence and liable on summary conviction or on conviction on indictment to a fine not exceeding $5,000 or to imprisonment for a term not exceeding two years, or to both.
Failure to supply information	(2) Every person who, without good and sufficient cause, the proof of which lies on that person, contravenes section 114 or 123 is guilty of an offence and liable on summary conviction or on conviction on indictment to a fine not exceeding $50,000.
	19. The Act is amended by adding the following after section 65:
Contraven- tion of Part VII.1 or VIII order	66. Every person who contravenes an order made under Part VII.1, except paragraph 74.1(1)(c), or under Part VIII is guilty of an offence and liable
	(a) on conviction on indictment, to a fine in the discretion of the court or to imprisonment for a term not exceeding five years, or to both; or
	(b) on summary conviction, to a fine not exceeding $25,000 or to imprisonment for a term not exceeding one year, or to both.
Whistleblow- ing	66.1 (1) Any person who has reasonable grounds to believe that a person has committed or intends to commit an offence under the Act, may notify the Commissioner of the particulars of the matter and may request that his or her identity be kept confidential with respect to the notification.
Confiden- tiality	(2) The Commissioner shall keep confidential the identity of a person who has notified the Commissioner under subsection (1) and to whom an assurance of confidentiality has been provided by any person who performs duties or functions in the administration or enforcement of this Act.
Prohibition	66.2 (1) No employer shall dismiss, suspend, demote, discipline, harass or otherwise disadvantage an employee, or deny an employee a benefit of employment, by reason that
	(a) the employee, acting in good faith and on the basis of reasonable belief, has disclosed to the Commissioner that the employer or any other person has committed or intends to commit an offence under this Act;
	(b) the employee, acting in good faith and on the basis of reasonable belief, has refused or stated an intention of refusing to do anything that is an offence under this Act;
	(c) the employee, acting in good faith and on the basis of reasonable belief, has done or stated an intention of doing anything that is required to be done in order that an offence not be committed under this Act; or
	(d) the employer believes that the employee will do anything referred to in paragraph (a) or (c) or will refuse to do anything referred to in paragraph (b).
Saving	(2) Nothing in this section impairs any right of an employee either at law or under an employment contract or collective agreement.
Definitions	(3) In this section, ``employee'' includes an independent contractor and ``employer'' has the corresponding meaning.
	20. The portion of section 68 of the Act before paragraph (a) is replaced by the following:
Venue of prosecutions	68. Notwithstanding any other Act, a prosecution for an offence under Part VI or section 66 may be brought, in addition to any place in which the prosecution may be brought by virtue of the Criminal Code,
	21. Section 73 of the Act is replaced by the following:
Jurisdiction of Federal Court	73. (1) Subject to this section, the Attorney General of Canada may institute and conduct any prosecution or other proceedings under section 34, any of sections 45 to 51 and section 61 or, where the proceedings are on indictment, under section 52, 52.1, 55, 55.1 or 66, in the Federal Court - Trial Division, and for the purposes of the prosecution or other proceedings, the Federal Court - Trial Division has all the powers and jurisdiction of a superior court of criminal jurisdiction under the Criminal Code and under this Act.
No jury	(2) The trial of an offence under Part VI or section 66 in the Federal Court - Trial Division shall be without a jury.
Appeal	(3) An appeal lies from the Federal Court - Trial Division to the Federal Court of Appeal and from the Federal Court of Appeal to the Supreme Court of Canada in any prosecution or proceedings under Part VI or section 66 of this Act as provided in Part XXI of the Criminal Code for appeals from a trial court and from a court of appeal.
Proceedings optional	(4) Proceedings under subsection 34(2) may in the discretion of the Attorney General of Canada be instituted in either the Federal Court - Trial Division or a superior court of criminal jurisdiction in the province but no prosecution shall be instituted against an individual in the Federal Court - Trial Division in respect of an offence under Part VI or section 66 without the consent of the individual.
R.S., c. 19 (2nd Supp.), s. 44	22. Section 74 of the Act is replaced by the following:
	PART VII.1

Bill C-20

PART VII.1