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Current Page - FAQ's
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Question 19 -  Our supplier says that we have to buy supplies from them as we have a lease contract for the machine.
Answer - 

You most likely do have a contract for the machine but that doesn't mean you have to buy supplies from them. That would violate many of the laws which the Competition Bureau of Canada has on their website.

1. Tied selling - These practices generally occur when a supplier places conditions on the supply of a product that constrain the customer in terms of, for example, what else the customer must buy to obtain supply, where the customer may subsequently market the product, or what other product lines the customer may or may not carry. These practices are not illegal in themselves, but may become a cause for concern if they are found to have caused, or be likely to cause, a substantial lessening of competition in a market.

2. Abuse of Market Power - The size of a business, even one that dominates a particular market, is not, of itself, a cause for concern. Businesses may need to become large to achieve lower production costs or to compete against foreign and domestic competitors. However, when a dominant company exploits its market power in a way that hurts competition in the marketplace the Competition Act may come into play.

3. Abuse of dominance (monopoly) - The abuse of dominance provision of the Competition Act seeks to prevent firms that dominate a market from engaging in anti-competitive acts that harm competitors, and thereby significantly lessen competition.

http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/h_02758.html

For example would you listen to your car dealership that said you had to buy gas at a certain gas station.

What if they told you that service to your car had to be done at the dealership you leased your car from. That would put companies like Mr. Lube and Budget Brake & Muffler out of business.

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