2014 Budget Targets "Unjustified" Cross-Border Price Discrimination

In its newly announced 2014 budget, the Conservative Government continued with its consumer focussed initiatives of the last few years. The budget contains numerous measures which are intended to be consumer friendly, including plans for new legislation to prohibit price discrimination between the United States and Canada for identical goods, that cannot be "justified by higher operating costs in Canada." The budget cites several studies to claim that Canadian consumers pay significantly more for identical products than their American counterparts. The new rules will apparently be aimed at companies which use their "market power to charge higher prices in Canada that are not reflective of legitimate higher costs." Other than stating that the Commissioner of Competition will have the power to enforce the new rules, no further information is provided. Details are to be announced in the coming months.