Image: The Canadian Press / Rogers Communications is pictured. The Competition Bureau says it is taking legal action against Toronto-based telecom Rogers Communications, arguing they falsely advertised their Infinite wireless phone plans as offering unlimited data.

By Mike Vanden Bosch

Competition Bureau sues Rogers

Competition Bureau takes Rogers to court over unlimited data claims; Rogers says its plans are transparent

Dec 24, 2024 | 7:57 AM

OTTAWA — The Competition Bureau says it is taking legal action against Toronto-based telecom Rogers Communications, arguing they falsely advertised their Infinite wireless phone plans as offering unlimited data.

In a news release, the bureau suggests that Rogers’ advertisements create the false or misleading impression that the plans provide consumers with limitless data, allowing them to use as much data as they want. However, the plans have data caps and once reached, the data speed is reduced, or throttled, by over 99 per cent, the bureau asserts.

As a result, the bureau has filed an application with the Competition Tribunal seeking, among other things, for Rogers to stop the misleading advertising, pay a penalty, and issue restitution to Infinite wireless phone plan customers.

Competition Bureau staff say they obtained two court orders to gather information and advance its investigation into Rogers’ marketing practices, arguing that the misleading advertising provisions of the Competition Act outlaw making any kind of false or misleading claim to promote a product, service or business interest.

In 2016, the bureau took enforcement action against unlimited claims in the telecommunications industry after concluding that Comwave internet and home phone services that were advertised as “unlimited” were actually subject to monthly caps on usage. A year later, the bureau published guidance for advertisers in the telecom industry warning against enticing consumers with specious claims of unlimited service, only to impose additional mandatory fees or caps.

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Rogers Communications issued a statement Monday (Dec. 23) in response to litigation initiated by the Commissioner of Competition.

“We introduced unlimited data plans in 2019 to deliver great value to our customers. These plans helped eliminate overage fees and gave customers bill certainty at a time when data use started growing exponentially,” Rogers said. “These plans are commonplace in the industry and reflected a significant and positive development for consumers and small businesses. The advertising of our Infinite plans is clear and truthful, and we will fight this litigation. These plans represent the norm in Canada and the Bureau’s decision to single out Rogers after five years is quite concerning.”