Canada: Advertising Campaign Challenged By Competition Bureau

The Competition Bureau filed a complaint in Ontario Superior Court of Justice against Rogers Communications Inc. alleging that the advertising of its Chatr discount cell phone and text service violates the misleading advertising provisions of the Competition Act.  The Bureau is asking for an injunction to stop the advertising campaign and an administrative monetary penalty of $10 million dollars.

The Rogers ad campaign at issue claims that Chatr subscribers will experience “fewer dropped calls than new wireless carriers” and have “no worries about dropped calls.”  However, the Bureau’s two month investigation, prompted by competitor WIND Mobile’s complaint, found “no discernible difference in dropped call rates between Rogers/Chatr and new entrants.”

Commissioner of Competition Melanie Aitken reiterated that the Bureau is taking misleading advertising “very seriously,” especially when the advertising discredits “new entrants attempting to gain a foothold in the market.”  A link to the Bureau’s press release is found here.

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