Competition Bureau Canada

Competition Bureau Canada

November 19, 2010 12:11 ET

Competition Bureau Takes Action Against Rogers Over Misleading Advertising

OTTAWA, ONTARIO--(Marketwire - Nov. 19, 2010) - After a two month investigation, the Competition Bureau has begun legal proceedings against Rogers Communications Inc. to stop what the Bureau has concluded is misleading advertising of Rogers' Chatr discount cell phone and text service.

Rogers' Canada-wide advertising campaign claims that consumers subscribing to Rogers' Chatr brand would experience "fewer dropped calls than new wireless carriers" and have "no worries about dropped calls".

The Bureau's investigation, which involved an extensive review of technical data, obtained from a number of sources, led the Bureau to conclude that there is no discernible difference in dropped call rates between Rogers/Chatr and new entrants.

"We take misleading advertising very seriously," said Melanie Aitken, Commissioner of Competition. "Consumers deserve accurate information when making purchasing decisions and need to have confidence they are not being misled by false advertising campaigns."

The Government of Canada opened up the domestic cell phone market in 2008 with a spectrum auction that made additional frequencies available to new wireless service providers.

"The spectrum auction was intended to enhance competition in the wireless sector," Ms. Aitken said. "New entrants attempting to gain a foothold in the market should not be discredited by misleading claims made by their competitors."

The legal proceedings are being brought before the Ontario Superior Court of Justice under the misleading advertising provisions of the Competition Act. The Bureau is asking the court to order Rogers to:

- immediately stop the advertising campaign and refrain from engaging in similar campaigns;

- pay an administrative monetary penalty of $10 million dollars;

- pay restitution to affected customers; and

- issue a corrective notice to inform the general public about the nature and provisions of the order issued against them. 

The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.

Contact Information

  • For media enquiries:
    Public Affairs Branch
    Greg Scott
    Senior Communications Advisor
    819-953-4257
    or
    For general enquiries:
    Competition Bureau, Information Centre
    819-997-4282/Toll free: 1-800-348-5358
    TTY (hearing impaired): 1-800-642-3844
    www.competitionbureau.gc.ca
    Enquiry / Complaint Form