Document Retention Policies: An Ounce Of Prevention

In January, the Federal Court of Canada set aside document-production orders issued to the Competition Bureau under section 11 of the Competition Act in connection with the Bureau's review of the Labatt/Lakeport merger. Recent media reports have focused on the implications of the decision for the Bureau, its internal procedures and the reputation of its senior management. But the decision also highlights the Bureau's regular use of production orders in merger, cartel and other investigations.

The cost implications of section 11 orders for Canadian businesses are significant. Labatt is reported to have spent more than $750,000 to respond to an earlier order in the Labatt/Lakeport review. In some cases, compliance costs can be much higher. Implementing a comprehensive document retention policy (DRP) can be a low-cost proactive way to lower the potentially high costs of court-ordered document production.