February 24, 2014 — OTTAWA, ON — Competition Bureau
The Ontario Superior Court of Justice issued its decision concerning penalties in the Rogers-Chatr matter on February 21, 2014.
In its decision, the Court rejected Rogers’ argument that it had exercised due diligence prior to making performance claims about the dropped call rates for its Chatr brand mobile wireless services, and ordered Rogers to pay an administrative monetary penalty of $500,000. The Court concluded that it was not necessary to impose an order against Rogers prohibiting it from engaging in similar conduct in the future.
On August 19, 2013, the Court dismissed the misleading advertising portion of the Competition Bureau's deceptive marketing practices case against Rogers. However, the Bureau successfully argued that Rogers had contravened the requirement to conduct adequate and proper testing prior to making a claim about the performance of a product.
- The 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 when promoting its Chatr brand mobile wireless services as having fewer dropped calls than new wireless carriers.
- The Bureau also alleged that the representations were performance claims and that these claims were not based on adequate and proper tests.
"While we are pleased that the Court recognized that Rogers did not exercise due diligence in making its performance claims, we are examining the modest amount of the penalty imposed and the decision not to issue a prohibition order. The Bureau will take the time necessary to review the Court’s reasons in order to make a determination as to next steps."
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