Saturday, November 20, 2010

Rogers faces $10M fine, consoles itself by renaming a building in its honour

They make that much in bandwidth fees, Cap and Tax.

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.

The move is the result of the bureau’s two-month investigation during which it concluded Rogers’ advertising campaign for Chatr is misleading. The investigation concluded there is no discernible difference in dropped call rates between Rogers’ Chatr service and new entrants.

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

Read more here.

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