In a sharp warning to landlords and property managers across Canada, the Competition Bureau has reminded industry players that discussing or agreeing on rental prices with competitors is not only unethical, it’s illegal.
The Bureau says it has observed growing concerns about landlords engaging in discussions on social media and other platforms that may cross the line into criminal activity, particularly amid Canada’s red-hot rental housing market.
“Conversations aimed at ‘making the most of the booming rental market’ or ensuring ‘all players benefit equally’ may sound harmless, but they could amount to serious violations of the law,” the agency said in a statement released Wednesday.
Under the Competition Act, it is a criminal offence for landlords to enter into agreements with competitors to:
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Set or coordinate rent prices, surcharges, or lease terms.
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Standardize amenities or services across properties.
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Restrict the availability of rental units to manipulate market supply.
Such practices fall under the scope of price-fixing, market allocation, and supply restriction — offences that carry severe penalties, including prison sentences of up to 14 years and unlimited fines as determined by the courts.
The Bureau emphasized that landlords must make independent decisions about pricing and lease terms and should negotiate solely with tenants — not with rival property managers or landlords.
To help landlords stay compliant, the Bureau recommends:
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Setting rental prices and lease terms independently.
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Avoiding discussions with competitors that could influence business decisions.
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Refraining from participating in any form of price-fixing or supply-restricting behavior.
Canadians who suspect illegal activity in the rental housing market are encouraged to contact the Competition Bureau through its Information Centre or via an online reporting form.
Employees aware of illegal agreements can also report anonymously through the Whistleblowing Initiative.
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