Rogers says being singled out is ‘concerning’
By Ahmad Hathout
OTTAWA – Three days after Rogers closed its acquisition of Shaw, the Competition Bureau launched an investigation into the cable company’s marketing of its “unlimited” wireless plans, saying it is misleading because the speed of the data is throttled after the monthly allotment is used.
The investigation was revealed when the bureau filed a request to the Federal Court this week to compel Rogers to divulge information related to the deceptive practices inquiry, which was launched on April 6.
The competition watchdog claims in its application that Rogers’s marketing of its “Infinite” plans is misleading because it gives the impression that customers will be able to “stream infinite amounts of content such as HD movies.”
The reality is – like the “uncapped” wireless plans of the other major providers – Rogers slows the maximum download and upload speeds of the data transmission significantly, “so that consumers effectively can no longer stream as much content as they want,” the application says.
The bureau says it takes issue with Rogers phrases including “Infinite Data. Infinite Possibilities”; “With infinite data and no data overages, your family can stream all the HD video, music and content they want, worry-free”; and “unlimited data.”
The application notes that the amount of data and network experience “are likely important considerations for consumers of mobile wireless services.”
The bureau wants information including the evolution of Rogers’s marketing of the plans in different media; how, where, when and to whom they are made; who the target audience is; the context in which they are made; the effects of the representations, including consumer attention, understanding and decision-making; what is the nature of the marketing for wireless services; the truth or falsity of the representations; who makes those representations and how those decisions are made; what changes are made to representations and why; and what knowledge does Rogers have that the representations are potentially false or misleading and what actions has it taken in response to that knowledge.
Since the bureau sent a letter to Rogers in June this year about its concerns, there had been extensive back-and-forth communications between the commission and the telecom about information exchange, according to the application.
In the summer of 2019, the large telecoms moved away from overage charges, instead throttling the speed above that consumption threshold. This ushered in the widely used phrase “unlimited” among the large telecoms in their plans, though people were quick to catch on to the controversial use of the term.
The competition watchdog said it began reviewing the claims of Canada’s wireless carriers in September 2021, specifically zeroing in on Rogers in March 2022.
“The advertising of our Infinite plans is truthful and clear,” Rogers told Cartt in a statement. “The introduction of these plans in 2019, which eliminated data overage charges, was a significant and positive development for consumers and competition. These types of unlimited wireless plans are common across Canada and have been offered for more than four years by Rogers and our industry competitors, and we find the Bureau’s timing of this inquiry, and that it has singled out Rogers only, quite concerning.”
The wireless plans indicate in the print that speeds will be throttled after the monthly threshold is breached.
Cartt has asked the Competition Bureau why it has only focused on Rogers despite other providers marketing their wireless plans as “unlimited.”
The bureau reiterated to Cartt that because its investigations are confidential — unless, like in this case, it must get a court order for more information — it cannot confirm whether it has any other open investigations on this matter. It said it has not concluded thus far any wrongdoing on Rogers’s part.
Bell and Quebecor told Cartt they are not aware of any bureau investigation involving them.
In 2016, the agency concluded an investigation in which it found Comwave mislead customers by marketing its internet and phone services as “unlimited,” even though there were monthly caps on usage. The next year, it published guidelines for advertisers in the telecom industry warning against making unlimited claims and manipulating its plain meaning by adding qualifying language in disclaimers.
The bureau said it currently has several records to further its investigation into the Rogers matter, including files it obtained during its inquiry into Rogers’s pursuit of Shaw, which it opposed.
The bureau challenged the merger as anti-competitive but was turned away by the Competition Tribunal and, subsequently, the Federal Court of Appeal. It declined to challenge to the country’s top court.
The Competition Tribunal this summer ordered the bureau to pay $12.9 million to Rogers and Quebecor – which purchased Freedom as part of the deal – because of its refusal to focus on another aspect of the merger, thus resulting in unnecessary resources being used.
Competition commissioner Matthew Boswell has consistently said that challenging the merger was the “right fight.”
“This investigation is completely unrelated to the Rogers-Shaw merger review and litigation,” the bureau emphasized to Cartt. “We commenced our investigation into Rogers’ marketing claims in March 2022. The Bureau did not file the application to block Rogers’ acquisition of Shaw until May 2022.”
Photo of Competition Commissioner Matthew Boswell.
