TORONTO – More wireless dealers have joined a lawsuit against Bell Mobility that claims that the wireless giant unfairly lowered their commissions in breach of franchise agreements.
According to a report in the Globe and Mail, some 30 plaintiffs are now each seeking damages of $2.5-million, plus legal costs.
The dealers, who together own about 110 Bell-branded stores primarily in Ontario and Quebec, act as exclusive retailers for Bell wireless devices and services as well as home phone and Internet. Bell also sells its mobile devices and communications services on its website and through retailers such as Best Buy, The Source and Glentel.
Bell and its dealers settled a previous case seeking more than $200 million in damages in 2011, according to the report. In the current claim, the plaintiffs allege the compensation programs Bell set for 2012 and later are “in breach of its franchise agreement[s]” with the dealers, and that the compensation programs provide “an unreasonably low rate of return” to the dealers for the “sole benefit” of Bell.
In a statement of defence, Bell denies the allegations and argues the compensation agreements “represent rational business decisions made by Bell Mobility for valid economic and strategic reasons, including market and industry-specific reasons, reasons of competitiveness and the business performance of the parties.”
Originally filed in the Ontario Superior Court of Justice in Toronto in June 2013, the claim was transferred to a division of the court that handles complex commercial litigation in July 2014. None of the allegations have been proven in court.
