TORONTO – Rogers has reached an agreement with the Competition Bureau to credit or refund its customers who were charged for premium text messages that they did not ask for.
Premium texts provide information like quizzes and fun facts, horoscopes and ringtones for which customers pay a transaction or monthly fee. In the past, Rogers acted as the billing agent for the third parties who provided the premium texts, much like charging a purchase to a credit card.
The move comes as a result of a Competition Bureau investigation of Rogers, Bell, Telus and the Canadian Wireless Telecommunications Association (CWTA) launched in 2012 alleging that the telcos promoted premium texting services while giving the impression that they were free. As part of the settlement, the Bureau said that it will discontinue the legal proceedings against Rogers, however, the legal proceedings against Bell, Telus and the CWTA remain ongoing.
Rogers said Monday that it will compensate Rogers and Fido customers for premium texts services, like Mind Quiz, Love Crush and Joke a Day, provided by Jesta/Jamster between January 1, 2011 and August 31, 2013 and by Mobile Messenger (MMS) between January 1, 2011 and September 30, 2012. Current Rogers wireless customers will receive an automatic bill credit in the next few months for the length of time they were charged by these services, while former customers who were charged for these services will be contacted to complete the refund process and will then have 120 days to make a claim.
Acting in response to customer concerns over premium texts in 2011 and 2012, Rogers said that it made the sign up process clearer, capped the amount of monthly charges, terminated problem vendors and provided a service allowing customers to block premium texts altogether. The wireless giant also ended its contracts with MMS and Jesta, the vendors that were the subject of Competition Bureau settlement agreements in 2012 and 2014, respectively, and terminated all other premium text programs in August 2014.
But Raj Doshi, Rogers’ EVP of its wireless services, admitted that the company "could have handled this better in the past”.
"We've worked with the Competition Bureau to come to an agreement because it's the right thing to do”, Doshi said in a statement. “We heard from customers in the past that they had concerns with these third-party premium text services and between 2011 and 2013 we took action to protect our customers. Last summer we stopped the program all together and today we're going even further. Though we've issued many refunds already to our customers, now all affected customers will get their money back."
In addition to paying up to an estimated $5.42 million in refunds, the largest amount the Competition Bureau said that it's ever received as a result of one of its investigations, the Bureau said that Rogers has agreed to create a campaign to educate customers about how charges can be incurred on their wireless devices and the steps they can take to avoid unwanted charges, including safety tips for online purchases; and to enhance its corporate compliance program, as necessary, with respect to billing customers on behalf of third parties.
"We are pleased that Rogers has chosen to work with the Bureau to ensure that Rogers’ consumers receive money back for the inappropriate charges and obtain clear information when purchasing online", said Commissioner of Competition John Pecman in a statement. "It is important that fees and subscriptions are not hidden in fine print or anywhere else, and that consumers’ right to truth in advertising is not compromised in the digital economy."
More information for Rogers customers is available here.
