Bell to pay out $11.82M in suit over text charges
Telecom firm to issue eligible customers a cheque after they were billed for up to $10 per transaction
Eligible Bell Canada wireless customers will receive a share of a record $11.82million payout from the company as part of a Competition Bureau settlement over unwanted premium text messaging charges on wireless phone bills.
Bell will issue credits or cheques to current and former customers and donate some $800,000 to groups dedicated to supporting public interest in the digital economy, the independent law enforcement agency said in announcing the settlement Friday.
The amount available for consumer rebates is the most obtained to date under a bureau agreement, with the latest settlement concluding an investigation of text messaging charges in the wireless industry the bureau launched in 2012.
The bureau at the time cited complaints from customers that had been charged as much as $10 per transaction if they clicked on premium text service promotions that included trivia questions and ring tones in pop-up ads and then had difficulty unsubscribing from the service.
Bell will publish a notice to affected customers, enhance its corporate compliance program and develop a consumer awareness campaign to educate consumers about how charges can be incurred on wireless devices and how to avoid unwanted charges.
The bureau has also settled with the Canadian Wireless Telecommunications Association (CWTA) without imposing a monetary penalty.
It said the association representing small and large wireless carriers across Canada will develop a consumer awareness campaign, notify affected customers and implement an internal corporate compliance program with a focus on “billing on behalf of” practices.
The bureau has alleged that the CWTA led customers to believe that measures were in place to prevent the unauthorized charges.
The settlements, which conclude the bureau’s inquiry after it reached similar agreements with both Rogers and Telus last year, bring total refunds to more than $24 million, with about $1 million in donations to consumer advocacy and research groups.
The bureau alleged that Rogers, Bell, Telus and the CWTA were making or permitting false or misleading representations to be made to customers in third party advertisements relating to premium text messaging and “rich content” services — and placing charges for the services on wireless phone bills without prior authorization from their customers.
The settlements, which include agreements with both Rogers and Telus last year, bring total refunds to more than $24 million, with about $1 million in donations to consumer advocacy and research groups
Customers were misled into believing the content was free, the bureau said late last year when it announced a then record agreement with Telus for a $7.34-million rebate to wireless customers, plus a donation of $250,000 to groups including the Ryerson University Privacy and Big Data Institute.
The previous record was set in March 2015, when Rogers said it would offer rebates or credits of up to $5.42 million to customers who were charged for extra services they had been led to believe were free.
The Competition Bureau launched legal proceedings before the Ontario Superior Court of Justice under the misleading advertising provisions of the Competition Act.
The actions have now been discontinued against Rogers, Telus, Bell and the CWTA.
Bureau commissioner of competition John Pecman called the settlements a significant win for consumers that “will deter others from engaging in misleading advertising that results in unauthorized charges to consumers.”
A commission spokesperson said while confidentiality provisions prevent disclosure of the number of affected Bell customers, “we can say that premium text messaging was a popular service with a high number of subscribers.”
Current Bell customers charged for certain text services between Jan. 1, 2011 and Aug. 31, 2013 will receive a credit from Bell on their wireless bill by July 25, while former eligible subscribers will be notified by Bell by mail and email and will receive the rebate in the form of a cheque.