CanadaIs it illegal for competing companies to agree on the price they charge consumers?
Yes, it is illegal in Canada for competing companies to agree on prices they charge consumers. Such agreements are criminal offences under section 45 of the Competition Act.
What the Law Says
The Competition Act makes it a criminal offence for competitors to conspire to fix prices, allocate markets, or restrict output.
Section 45 of the Competition Act prohibits agreements or arrangements between competitors that prevent or lessen competition 'unduly' — including agreements to fix, maintain, increase or control the price for the supply of a product. This applies whether the agreement is written, oral, or even implied through conduct.
The law targets 'competitors' — meaning businesses that would normally compete with each other in the same market — and covers both domestic and international conspiracies affecting Canadian consumers.
Statutory TextProhibits agreements between competitors to fix prices, allocate markets or restrict output.
— Competition Act, s. 45 — Conspiracies, agreements or arrangements between competitors
What Courts Have Said
Courts have confirmed that price-fixing conspiracies harm consumers and undermine market integrity — and that victims, including indirect purchasers, may pursue redress.
The Supreme Court upheld Quebec’s jurisdiction over an international price-fixing conspiracy involving DRAM microchips, confirming that indirect purchasers (e.g., consumers who bought devices containing the chips) can be included in class actions — reinforcing accountability for cross-border cartels affecting Canadians.
What to Do
Report suspected price-fixing to the Competition Bureau via their online form or hotline.
If you’re a business, ensure your employees understand competition law — especially when interacting with competitors at trade events or associations.
If you’re part of a class action related to price-fixing, consult a lawyer to assess eligibility for compensation.
Review internal policies and training to avoid even inadvertent coordination on pricing, output, or customers.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.