The ten hotels in Ottawa with 5 star ratings were each asked separately to give the federal government a price that it would charge per night for people associated with the federal government staying at their hotel. The 10 hotels then contacted each other and agreed that they would each tell the federal government that the special government room rate would be $110 per night. As a result which of the following statements is TRUE? The hotels
A) did nothing illegal as they have the right to discuss their pricing strategies
B) are guilty of an offence under the Civil Reviewable Matters section of the Competition Act
C) are guilty of abuse of dominant position
D) are guilty of bid rigging
E) could face penalties of up to 20 years in jail and maximum fines of $10 million
Correct Answer:
Verified
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