Rogers Faces Lawsuit from Competition Bureau Over Alleged Misleading Unlimited Data Claims
The Competition Bureau has launched legal action against Rogers Communications Inc., accusing the telecom giant of falsely advertising its Infinite wireless phone plans as offering unlimited data.
According to the Bureau, Rogers’ marketing suggests that customers can use unlimited data without restrictions. However, the Bureau claims the plans include data caps, after which data speeds are throttled by over 99%, significantly limiting functionality.
The Bureau has filed an application with the Competition Tribunal, seeking measures including a stop to the allegedly misleading advertising, a financial penalty, and restitution for affected Infinite plan customers.
Rogers, a publicly traded Canadian telecommunications and media company headquartered in Toronto, provides various services, including wireless communication. The term “throttling” refers to the practice of intentionally reducing data speeds after a user exceeds a specified data limit.
As part of its investigation, the Bureau obtained two court orders to gather information about Rogers’ marketing practices. The Bureau noted that misleading advertising contravenes the Competition Act, which prohibits false or misleading claims to promote products, services, or business interests.
This is not the first time the Bureau has addressed “unlimited” claims in the telecommunications industry. In 2016, it took enforcement action against Comwave for advertising internet and phone services as “unlimited” while imposing usage caps. The following year, the Bureau issued guidance for telecom advertisers, cautioning against promising unlimited services while imposing hidden caps or fees.
The Bureau encourages consumers to report deceptive marketing practices through its online complaint form.
“Canadians need accurate and truthful information when purchasing goods and services especially essential services like wireless data plans. 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.”
Matthew Boswell,
Commissioner of Competition
