Rogers asked to pay penalty of $500,000 for contravening the Competition Act

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Ottawa: The Ontario Superior Court of Justice has ordered Rogers to pay an administrative monetary penalty of $500,000 in the decision announced in Canada (Commissioner of Competition) v. Chatr Wireless Inc.
Competition Bureau’s legal proceedings alleged 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, and that the fewer dropped calls claims were not based on adequate and proper tests. Court found that Rogers contravened the Competition Act. Specifically, the Court recognized that Rogers did not conduct adequate and proper tests to support its performance claims prior to making them.
John Pecman, Commissioner of Competition, issued the following statement with respect to the Competition Bureau’s case relating to certain claims made by Rogers about the dropped call rates of its Chatr brand mobile wireless service:
“Following a careful review of the Court’s decision, we have decided not to appeal in this matter. Moving forward, we will continue our work to eliminate performance claims from the marketplace which are not based on adequate and proper testing. Unsupported claims reduce consumer confidence in advertising and are unfair to competitors who play by the rules.”

The Government of Canada opened up the domestic cell phone market in 2008 with a spectrum auction that made additional frequencies available to new wireless service providers. Rogers’ Canada-wide advertising campaign claimed that consumers subscribing to Rogers’ Chatr brand would experience “fewer dropped calls than new wireless carriers” and have “no worries about dropped calls”.