TELUS Files Law Suit Against Mobilicity for Broadcasting Misleading Ad Campaign


By: Jeff Stewart  |   December 16th, 2012   |   Business, News, O Canada

Canadian telecom company, TELUS seems to be going through a frustrating period. On one hand, the firm is facing serious outrage from many of its consumers over the cutting of download limits of home internet service by up to 50 percent. On the other hand, Mobilicity a small wireless competitor that caters to just one percent of the population in Canada is causing problems for TELUS, who represent a market share of over 28 percent by broadcasting a snarky television advertisement in November.

 

Although, TELUS did not come up with any solutions to deal with the outrage of its consumers, when it came to solving the second issue, the wireless company figured a way out. They filed a lawsuit against Mobilicity on December 7 in which TELUS claimed that this ad campaign from its competitor wireless carrier has caused them “irreparable harm”.

 

Mobilicity’s now infamous advertisement states that, “what you see isn’t always what you get” from country’s big wireless providers, including TELUS, Bell Mobility and Rogers Communications Inc. Meaning that the unlimited plans offered by the big telecom companies are not really limitless, whereas Mobilicity in contrast is offering truly limitless plans. This ad has run in the print format as well.

 

However, prior to filing this law suit TELUS did inform Mobilicity late in November that they are not pleased with their ad campaign and suggested that they should stop broadcasting it. But according to the legal documents filed in the Supreme Court of British Columbia, Mobilicity “refused or neglected to comply with this demand and continues to make the mispresentations.”

 

Therefore, TELUS decided to take legal action against the small telecom carrier. On the other hand, commenting on this law suit the President and Chief Operating Officer of Mobilicity, Stewart Lyons said that, “We think it’s preposterous, this is the same stuff we’ve been saying for two and half years,” and “they appear to be trying to intimidate us and prevent us from getting our message out.”

 

The two wireless telecom companies will now face each other in the court, as a date is already scheduled for December 14.

 

Source: TechVibes, FinancialPost

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