Rogers Communications Inc. is facing a lawsuit alleging that the company falsely advertised its phone plan offering unlimited data.
On December 23, the Competition Bureau announced that it was taking legal action against Rogers due to allegations that its advertisements were “false or misleading.” The Bureau alleges that Rogers gave customers the impression that limitless data would allow them to use as much data as they wanted. However, the lawsuit claims that the plans actually have data caps, and once reached, the data speed is “reduced, or throttled, by over 99%.”
“Throttling” happens when a service provider reduces data speeds, limiting the amount of data sent or received. The Bureau alleges that the misleading advertisements violate the Competition Act.
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In an application filed with the Competition Tribunal, the Bureau stated that it’s asking Rogers to stop its misleading advertising, pay a penalty, and issue restitution to Infinite wireless phone plan customers.
In response, Rogers argued that advertising for its Infinite plans is “clear and truthful” and that it “will fight litigation initiated by the Commissioner.”
The company stated that its unlimited data plans have delivered “great value” to its customers. Rogers also claimed that these plans are commonplace in the industry.
“These plans represent the norm in Canada, and the Bureau’s decision to single out Rogers after five years is quite concerning,” it stated.
Commissioner of Competition Matthew Boswell said that when purchasing essential services like wireless data plans, “Canadians need accurate and truthful information.”
“This case demonstrates that the Bureau remains committed to ensuring that Canadian consumers are not misled. And that we take all appropriate measures to address false or misleading claims in the marketplace,” he said.
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