Canadian Competition Bureau Raise Concerns on Misleading Telecom Ads

By: Zain Nabi  |   February 8th, 2013   |   News, O Canada

Telecom companies present their ads in such a fascinating way that consumers get attracted towards them, most of the time without giving a second thought to their decision. Their messages and offers are so tempting that consumers do not find need to think of other options. However, it has been observed for quite some time now that many telecom companies misguide their consumers by not presenting complete information in their ads.

 

It has been reported that these companies tend to provide false information and claim to provide unlimited data plans, which, in actual, are limited data plans. The Competition Bureau has brought this issue under consideration and has called for banning misleading advertisements. The Bureau, which keeps an eye on business practices in Canada, has also highlighted the issue with regard to locking smartphones. By having their smartphones locked, consumers can avail service of only one carrier.

 

The point that the Bureau has stressed is that the consumers must choose their favourite carriers based on all the necessary and correct information, and presentation of proper facts in the ads will help the consumers take an informed decision. The Globe and Mail quoted Vicky Eatrides, deputy commissioner of the Bureau, as saying:

 

“Basically anything that’s keeping those customers locked up and making it difficult for those new [wireless companies] to attract customers, that’s what we have concerns with.”

 

Recently, Canadian Radio-television and Telecommunications Commission (CRTC) also came in the limelight after getting increasing complaints about the wireless networks in the country. The CRTC also put the same agenda on the table and it urged the telecom companies to clearly state their messages, rates and other details while advertising their product/service.

 

Meanwhile, the Competition Bureau has also asked to facilitate consumers in terms of payment of their dues. It should be noted that in most parts of the world the mobile phone networks offer contracts of around two years, but in Canada three-year contracts are given. A lot of voices have also been raised with respect to this duration and CRTC also shed light on the matter but it focused more on the effects of the three-year contract rather than trying to minimise the tenure. As far as payment and billing are concerned, the Competition Bureau has suggested:

 

“Consumers should be allowed to make advance payments against device “subsidies,” much as homeowners can with respect to mortgage balances, as opposed to being constrained to normal monthly commitments. The Bureau supports methods to add flexibility when repaying device “subsidies.”

 

Photo: Cantechletter