OTTAWA – A Montreal businessman is facing jail time after being convicted of deceptive marketing for a device known as Clear Vue that he claimed worked like a giant TV antenna and could replace cable service.
John Dragan, president of now defunct Montreal-based mail order businesses JD Marvel and CDN Mail Order Exchange, was sentenced Thursday by the Court of Quebec. He received 10 months in jail for making false claims about the Clear Vue device plus an additional 18 months for deceiving consumers about advertised delivery times for Clear Vue and other products he was selling. The sentences are to be served concurrently.
In addition, the Court prohibited Dragan from selling goods to consumers in cases where they cannot see the product before purchase (for example, via online sales), for a period of five years.
The offences relate to false representations made to Canadian and American consumers.
The Competition Bureau, which launched an investigation in to the two companies in 2002, said that it received more than 5,900 complaints concerning the marketing practices of JD Marvel and CDN Mail Order Exchange between 1999 and 2005.
"I am very satisfied with this sentence. The fact that the accused is going to jail sends a clear message that those who deceive consumers face very serious penalties”, said Commissioner of Competition John Pecman, in a statement. “As consumers did in this case, we strongly encourage anyone who believes that a company or an individual has contravened the Competition Act to contact the Bureau and file a complaint."
