Rogers Could Face $10 Million Fine For Misleading Ads
A reader sent along this follow-up to the Rogers billboards I mentioned last week. As you may recall, the Rogers sub-brand chatr was running, to my mind, some perplexing ads.
It turns out those billboards weren’t only perplexing, but potentially unlawful:
The Competition Bureau is seeking a penalty of $10 million against Rogers Communications Inc. for ads claiming that its discount cellphone and text service, Chatr, has fewer dropped calls than its new competitors.
The bureau announced Friday that it has begun legal proceedings against Rogers in the Ontario Superior Court of Justice under the misleading advertising provisions of the Competition Act. In addition to the penalty, the bureau is asking the court to rule that Rogers must immediately stop its advertising campaign and pay restitution to affected customers.
I gather the upstart Wind Mobile filed the complaint.
UPDATE: I got a note from somebody at Rogers with a response:
“We’re surprised by the actions of the Competition Bureau,” said Ken Engelhart, Senior Vice President of Regulatory, Rogers Communications. “We have extensive, independent third party testing to validate our claims and we stand by our advertising. We will vigorously defend this action in court.â€Â
“We’ve completed extensive testing in coverage areas across the country and there’s no question that the testing validates the advertising in market,†said Todd Stone, President & CEO, Score Technologies.
Score Technologies is an independent third party organization that specializes in network testing for leading wireless carriers across North America.