The encyclopedia · Advertising & PR · Marketing decision · 2016
Bell closed the premium-text sweep with the Bureau's biggest refund yet — $11.82M
May 2016: Bell rebated $11.82M and donated $800K after the Bureau found misleading premium-text ads billing Bell customers — the largest such refunds to date.
Bell Canada · 2016-05
What happened
The Bureau's investigation into unwanted premium text messaging charges — trivia, horoscopes, ringtones billed to wireless customers through third-party ads — ended with Bell, the last of the big three to settle. Bell had made, or permitted to be made, false or misleading representations in ads for the services appearing in pop-ups, apps and social media, with charges landing on phone bills without adequate disclosure of what the customer was agreeing to.
The consent agreement of 27 May 2016 required rebates to current and former customers of up to $11.82 million — the most the Bureau had ever obtained for consumers under a single agreement — plus a donation of approximately $800,000 to public interest advocacy groups working on digital research and consumer awareness.
The sweep's arc told its own story: Rogers settled first for $5.42 million, Telus next for $7.34 million, and Bell last for the largest amount. Each carrier's defence was that third parties wrote the ads; the Bureau's answer, three times, was that the carrier owning the bill owns the representations made against it.
Why it happened
- Premium-text subscriptions enrolled through pop-up ads billed recurring charges without adequate disclosure.
- The charges arrived inside Bell's own bill, under Bell's name — the ad borrowed the carrier's trust.
- Bell was last of the three to settle, and the largest amount reflected the sweep's accumulated case.
The lesson
The bigger the billing relationship, the bigger the exposure: the carrier that permits misleading ads to bill through its customers' bills answers for them, and settling last cost the most.
Aftermath
Bell's agreement closed the Bureau's premium-text sweep with all three national carriers settled. The $800K donation funded public interest work on digital consumer awareness.
Sources
- Competition Bureau — Bell customers to receive up to $11.82 million as part of Competition Bureau agreement
- iPhone in Canada — Bell to Refund Customers $11.8 Million for Unwanted Premium Texts
spotted an error? The club wants to know.
More like this
Comwave sold 'unlimited' internet with a cap — and prices full of fees — $300K
Rogers let horoscope texts bill its customers — $5.42M in refunds
Telus let third parties bill customers for horoscope texts — $7.34M in rebates
Somewhere, someone solved the problem this company failed at. 2nd Opinion →

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