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The encyclopedia · Advertising & PR · Marketing decision · 2015

Rogers let horoscope texts bill its customers — $5.42M in refunds

Mar 2015: Rogers became the first carrier to settle the premium-text sweep — $5.42M in refunds for third-party subscriptions customers never clearly bought.

Rogers Communications Inc. · 2015-03

What happened

Third-party premium text services — games, quizzes, horoscopes, ringtones — showed up on Rogers and Fido phone bills as monthly subscriptions, sold through ads in pop-ups, apps and social media whose recurring charges were not adequately disclosed. The Bureau concluded that Rogers made, or permitted to be made, false or misleading representations in those ads. The investigation had opened in 2012 against Rogers, Bell, Telus and the wireless industry association together.

The consent agreement of 16 March 2015 made Rogers the first of Canada's big carriers to settle: refunds and credits of up to an estimated $5.42 million, covering charges from two third-party providers between January 2011 and late 2013. It was then the Bureau's largest-ever refund package for wireless consumers.

The pattern the sweep exposed was structural: the ad promised a game, the click enrolled a subscription, and the charge arrived inside a phone bill the carrier sent under its own name. Rogers was answerable not for writing the ads but for permitting them to bill through its own relationship with the customer.

Why it happened

  • The recurring charge was not adequately disclosed at the moment the customer clicked.
  • The subscription charge arrived inside Rogers' own bill — the carrier's name gave the ad's promise its trust.
  • Permitting misleading ads on the billing rails made the representations Rogers' responsibility.
What it cost$5.42M in refunds and creditscostly

The lesson

Whoever's name is on the bill answers for the charges it carries: a carrier that permits third-party ads to bill through its customer relationship owns those ads' representations.

Aftermath

Rogers settled first; Telus followed in December 2015 ($7.34M) and Bell in May 2016 ($11.82M). The sweep rewrote disclosure standards for carrier-billed subscriptions in Canada.

Sources

spotted an error? The club wants to know.

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