OTTAWA – Bell is third big wireless provider to reach an agreement with the Competition Bureau to credit or refund its customers who were charged for premium text messages that they had been led to believe were free.
The Bureau said Friday that Bell will issue rebates of up to $11.82 million to select current and former wireless customers after it concluded that the company made, or permitted to be made, false or misleading representations in advertisements for premium text messages, including trivia questions and ringtones, in pop-up ads, web pages and on social media.
The rebates will be issued to certain former and current customers charged for certain premium text messaging services between January 1, 2011, and August 31, 2013. Eligible current customers will receive a rebate in the form of a credit to their wireless account, while eligible former customers will be notified with details on how to claim their rebate by mail or email by July 25, 2016.
The amount of money available for consumer rebates is the most obtained to date under a Bureau agreement. The previous record was set last December when Telus agreed to offer rebates or credits of up to $7.34 million to customers who were charged for premium text messages that they did not ask for.
In addition to the rebates, the agreement requires Bell to publish a notice to all affected customers, enhance their corporate compliance program, and establish a consumer awareness campaign to educate consumers on how charges can be incurred on wireless devices and how to avoid unwanted charges. Bell will also donate approximately $800,000 to support digital media research and awareness.
The agreement comes as a result of a Competition Bureau investigation of Rogers, Telus, Bell 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. The Bureau said Friday that it has also settled with the CWTA, and that the organization will also develop a consumer awareness campaign, issue a public notice to affected customers, and implement an internal corporate compliance program with a specific focus on "billing on behalf of" practices. The Bureau reached similar agreements with both Rogers and Telus last year.
"We are pleased that the agreements reached with Bell and the CWTA bring an end to the legal proceedings initiated by the Competition Bureau”, said Competition Commissioner John Pecman, in a statement. “Trust in the digital economy is vital for Canadians in the 21st century. As with the settlements reached with Rogers and Telus, Bell's settlement represents a significant win for consumers and will deter others from engaging in misleading advertising that results in unauthorized charges to consumers."
