January 2020

Two major molded interior door manufacturers, who control most of the Canadian market, issued notice to their distribution chains that they would simultaneously increase the prices of certain products by upwards of 25%, effective mid-February 2020. The letters, sent within days of each other, expressed the need to raise prices in response to ongoing economic and labour conditions. The nature and timing of the announcements, and the similarity of the increases, has many members concerned over anti-trust issues.

The affected products are:

• Hollow Core Flush and Moulded Panel Doors
• Solid Core Flush and Moulded Panel Doors
• Wood Stile and Rail Interior Doors

In Canada, provisions 45, 46 and 48 of the Competition Act prohibit anti-trust agreements between two or more entities to prevent or lessen competition. Agreements between competitors to fix prices, to allocate customers or geographic markets, or to restrict production of a product by setting quotas among competitors or other means are considered anti-competitive and harmful to consumers, businesses, and a strong and healthy marketplace.

Given the concerns members have on this issue, CHBA has been in contact on behalf of members with the Competition Bureau, the independent federal law enforcement agency mandated to enforce the Competition Act. If as a member you have received these notices and/or have been impacted by these increases, you can file formal complaints with the Bureau. The Bureau will then investigate, and, if there is enough evidence, file charges.

CHBA is monitoring this issue closely and will be providing updates as new information is known. To ensure you stay up to date on this and other industry issues, sign-up for Association emails by contacting communications@chba.ca.

Members with questions or concerns should contact Nicole Storeshaw Director, Government Relations at  nicole.storeshaw@chba.ca