Rogers sued by Competition Bureau over alleged false advertising in ‘unlimited’ data plans

Canada’s Competition Bureau is suing Rogers Communications Inc. over allegations the telecommunications company is misleading consumers about the “unlimited” data included in its mobile wireless data plans. The Competition Bureau, helmed by Commissioner Matthew Boswell, alleges Rogers is “falsely advertising” its infinite wireless phone plans as including unlimited data despite a data cap being in place, meaning data service is throttled to speeds much slower than initially received by consumers once they reach a certain threshold for the remainder of their billing period. In a submission to the Competition Tribunal, the bureau argues that Rogers’ related plans are not “and never have been” unlimited or infinite. The tribunal deals with cases that relate to competition laws under Canada’s Competition Act. The Competition Bureau hinges its arguments, in part, on Rogers’ use of the term “unlimited” in its service plans and advertising. It states that the “literal meaning and general impression” conveyed by the word “unlimited” is straightforward: “something that is not limited in any way or restricted in terms of number, quantity, or extent; infinite.” “Instead, the data included with the plans is limited and finite in terms of quantity and quality by Roger’s Data Caps and throttling,” states the bureau’s submission to the tribunal, which is dated Dec. 22 and signed by Boswell. The competition watchdog is asking the tribunal to force Rogers to stop its allegedly misleading advertising, pay a penalty, and pay restitution to Infinite wireless phone plan customers. It did not specify how much money it wants consumers to get in restitution, except to say it should not exceed the total amount Rogers has made through the plans in question. Matthew Boswell/photo via Competition Bureau In its submission, the bureau states that in June 2019, Rogers launched an “aggressively ‘high impact, high reach’” multi-phase advertising campaign” to promote its “Infinite Unlimited Plans” in Canada. The bureau, which has been investigating Rogers’ infinite wireless plans for more than a year, notes that when the plans were launched, people would have been familiar with other service offerings from Rogers and its competitors that “were indeed unlimited,” such as unlimited home internet and unlimited wireless talk and text. Among other wording it says has appeared in previous Rogers advertisements, the Competition Bureau says consumers saw marketing with wording including “data without limits” and “enjoy infinite data on any 5G device. No limits, no restrictions, and no overages,” as well as “unlimited data that goes on and on and on and on and on and on and on.” The bureau’s issue with this wording is that these marketing statements and others it says were used in Rogers’ ads “reinforce the general impression that there are no limits and consumers can use as much data as they want,” it alleges. It additionally points to a Rogers webpage as it observed it on Oct. 26, 2022, with the word “unlimited” used in two contexts – “unlimited data” and “unlimited calls and texts.” “On one hand, in the context of calls and texts users could make as many calls or texts as they like without limit, while on the other hand, in respect of data, the ‘unlimited data’ is subject to a data limit,” the bureau states. In more recent versions of plan details available to consumers on Rogers’ website, the company makes statements such as “200 GB at speeds up to 1 Gbps. Unlimited data at reduced speeds thereafter.” But the competition bureau takes issue with there being no additional information immediately shown on how much consumers’ data speeds are throttled once they reach that certain usage point. That information is made available lower down on the web page, under a drop-down menu called “see full details.” As of Jan. 3, Rogers’ webpage states in that drop-down section that “once you have reached the high-speed data allotment of your plan, you will continue to have access to data services with no overage beyond the high-speed data allotment at a reduced speed of up to 512 kilobits per second (for both upload and download) until the end of your current billing cycle.” However, the Competition Bureau alleges, internal records of Rogers’ show that most visitors to the site do not scroll to or read those Terms and Conditions. “These disclaimers are inadequate to alter the general impression conveyed by the representations promising unlimited and infinite data,” the bureau alleges. “To the extent that they are even noticed and read, they do not convey the extent or magnitude of the effect that this reduction has on a consumer’s experience.” The throttling of data, meanwhile, makes it “difficult or virtually impossible” to do certain things with the remaining data, the bureau states, which “fundamentally impacts the functionality of any application that requires high-speed data, such as streaming, video calling, or cloud gaming,” the bureau writes. The bureau alleges Rogers encouraged people in ads to use more data, while at the same time telling them not to worry about data overage charges or data top-ups, and claims the company decided on throttled speeds for plan subscribers to make for a “painful” experience for consumers. “Rogers expected this to encourage consumers to either buy more high-speed data for the rest of the month by purchasing what Rogers markets as a ‘Speed Pass’, or upgrade to a plan with a bigger data bucket,” the bureau alleges. Competition Bureau warns of using ‘unlimited’ language The bureau points out that it published documentation in May 2017 telling telecommunications companies to avoid using the term “unlimited” if their offerings include restrictions or are limited. “Two years later, Rogers forged ahead with the exact strategy that the industry was warned not to use: marketing data as unlimited, even though it is limited, and relying on disclaimers on its website to cure the deception,” the bureau alleges. According to the Competition Bureau, as of the end of 2023, there were more than 2.5 million customers subscribed to Rogers Infinite Unlimited Plans, “and Rogers has generated billions in revenue from those plans.” “After becoming aware of the Commissioner’s inquiry, Rogers made modest adjustments to its representations, but has not addressed the issue at the core of this matter – referring to data inappropriately as ‘unlimited’ or ‘infinite’ when in fact it is subject to limitations,” the bureau alleges. For its part, Rogers asserted in a press release following the Competition Bureau’s filing that it advertises its infinite plans in a “clear and truthful” way. It further states its plans “represent the norm” in Canada, and argues that the Bureau is singling it out amongst its peers. “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. These plans are commonplace in the industry and reflected a significant and positive development for consumers and small businesses,” says Rogers, which pledges to fight the suit. None of the allegations has been tested in court. hdaley@thewirereport.ca

Rogers sued by Competition Bureau over alleged false advertising in ‘unlimited’ data plans

Court |
By Hannah Daley
| January 3, 2025

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Rogers sued by Competition Bureau over alleged false advertising in ‘unlimited’ data plans

Court | By Hannah Daley | January 3, 2025

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

Tories dissent Heritage Committee report on tech giants’ intimidation

Quebecor acquires advertising business, expands ad reach in Canada

Federal arbitrator releases paid time political broadcast schedule

Stingray, Rogers bolstering FAST channel options

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Court |
By Hannah Daley
| January 3, 2025