Canadian wireless providers Rogers, Telus and Bell and an industry association are being slapped with a lawsuit by the Competition Bureau. The Canadian regulatory authority alleges that the wireless giants enable providers of premium text message services ways to bamboozle consumers into paying fees. The Competition Bureau will try to prove that the consumers were not expecting the charges and that the system was rigged against users.
The regulatory authority is seeking $10 million from each of the telecom companies and is asking the Canadian Wireless Telecommunications Association to cough up $1 million for its part in the matter. The bureau also wants the wireless providers ot issue full refunds to customers, cease the airing of commercials that do not fully disclose the prices of the premium content and the release of advertisements that state any actions taken against the firms so that the public is informed of the entire situation.
The wireless providers are not taking the matter lightly and have stated that the lawsuit is misguided because the Competition Bureau is going after the wrong people. They also think that the current lawsuit could negatively impact the ecommerce sector in Canada.
The bulk of the case revolves around short-codes that are usually displayed on TV shows that enable viewers to vote for contestants. These codes can be used for other purposes including making donations or payments for ringtones. According to the Bureau these premium services cost the user $10 per transaction. The regulatory authority also stated that some monthly subscriptions come out to be $40 per month and are not included as part of the regular billing. Canada has 700 short codes that can be used to offer premium services and bill clients through the wireless providers.
Competition Bureau commissioner Melanie Aitken has given further details on the matter by stating that, “Our investigation revealed that consumers were under the false impression that certain texts and apps were free.” She went on to say, “Unfortunately, in far too many cases, consumers only became aware of unexpected and unauthorized charges on their mobile phone bills.”
The wireless companies and their spokesmen are adamant that the lawsuit is not correct. The argument being put forward is that the government’s current lawsuit is similar to newspapers being held liable for the false statements made by third party advertisers.
Source: Canadian Business
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