Competition Bureau Canada

Competition Bureau Canada

August 20, 2013 13:36 ET

Statement from the Commissioner of Competition Regarding the Ontario Superior Court Decision in the Rogers-Chatr Matter

OTTAWA, ONTARIO--(Marketwired - Aug. 20, 2013) - John Pecman, Commissioner of Competition, issued the following statement today in response to the Ontario Superior Court of Justice's decision dismissing the misleading advertising portion of the Bureau's deceptive marketing practices case against Rogers Communications Inc. (Rogers):

"We are disappointed that the Court did not agree that Rogers' claims were misleading to consumers, and we are currently considering our next steps in this matter. Nevertheless, we are pleased that the Court has dismissed the constitutional challenges brought forth by Rogers, and has agreed with our position that Rogers did not conduct adequate and proper testing beforehand to support its claims about dropped calls in some Canadian cities.

During the legal proceedings, Rogers made constitutional challenges to two key provisions of the Competition Act: i) the administrative monetary penalty remedy available under the misleading representations provisions of the Act; and, ii) the requirement in the Act that advertisers conduct tests prior to making performance claims. The Bureau successfully argued that the requirement for adequate and proper testing before making a claim about the performance of a product is justified. Similarly, the Court agreed with the Bureau's position that administrative monetary penalties are not criminal in nature."

Background:

The Competition Bureau began legal proceedings against Rogers in November 2010, alleging in its application that Rogers, in a Canada-wide advertising campaign, made false or misleading representations about dropped calls. The Bureau also alleged that the representations were performance claims and that these claims were not based on adequate and proper tests. Rogers dismantled the advertising campaign within a month of the Bureau filing its application.

The court will determine and announce a decision on remedies at a later date.

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

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