The defendant, 1806369 Alberta Limited (ReviveYou Media), pleaded guilty to one count of false or misleading representations under s. 52(1) of the Competition Act.
The company operated a 'subscription trap' scheme involving diet pills, where consumers were led to believe they were signing up for a 'risk-free trial' with only a small shipping fee, but were in fact enrolled in recurring monthly subscriptions.
The scheme generated approximately $19.6 million USD in sales.
The court accepted a joint submission from counsel, imposing a $15 million fine and a 10-year prohibition order under s. 34(1) of the Competition Act, emphasizing deterrence and denunciation despite the defendant's inability to pay the full amount.
