As real estate professionals, it’s important to be aware that certain actions — even unintentional ones — can raise red flags under the Federal Competition Act. If the outcome in a local market seems unusual or inconsistent with fair competition, it could prompt an investigation by the Competition Bureau.
That’s why it’s essential to understand what qualifies as collusion or conspiracy. In short, agents must make independent business decisions, without consulting, coordinating, or making agreements with their competitors. Even talking about pricing strategies, sharing market territories, or agreeing to boycott a particular service provider can land you in serious legal trouble.
To help you stay informed, the Canadian Real Estate Association (CREA) produced a video to clearly explain these issues. A key takeaway: anti-competitive agreements are illegal, whether they’re actually carried out or not.
The video also walks through specific examples of practices to avoid, such as:
- Price fixing
- Market division
- Group boycotts
- Shared advertising plans
These are not just theoretical concerns. Violations can lead to significant penalties, including fines.
Want to dig deeper? You’ll find more detailed guidance on the Competition page of the CREA Learning Hub (CREA login required). It’s a valuable resource that can help you protect your business and maintain the trust of your clients.