Wine and spirits company fined $40K for paying Ontario retail stores to promote its products
Alcohol and Gaming Commission of Ontario Investigation and Enforcement Bureau at the Shorelines Casino Thousand Islands in Gananoque, Ont. on Friday, July 30, 2021. THE CANADIAN PRESS/Lars Hagberg
A wine and spirits company has been ordered to pay a $40,000 for paying retail stores to promote their products, the Alcohol and Gaming Commission of Ontario says.
In November, the AGCO began investigating concerns that Mark Anthony Group Inc. was 'unfairly promoting its products in Ontario.'
In a news release on Wednesday, the AGCO said that the investigation has since confirmed that a marketing firm working on behalf of the company paid more than 130 retailers up to $225 per store to display posters promoting their brands.
The AGCO says that the stores were also encouraged to purchase and stock higher volumes of the products featured in the posters.
'The AGCO is committed to maintaining a fair and competitive alcohol market. Undisclosed financial incentives corrupt market integrity and are a clear violation of Ontario's regulations,' AGCO CEO and Registrar Karin Schnarr said in the news release.
'This penalty sends a firm message: we will hold all licence holders accountable for compliance and ensure that small, independent producers have the opportunity to succeed in Ontario.'
The AGCO says that provincial legislation 'explicitly' prohibits licensees and their representatives 'from offering financial benefits or inducements to retailers in order to increase the sales or availability of a brand of alcohol.'
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