The encyclopedia · Advertising & PR · Marketing decision · 2015
Telus let third parties bill customers for horoscope texts — $7.34M in rebates
Dec 2015: Telus rebated $7.34M to customers after the Bureau found misleading ads let third parties charge Telus and Koodo users for trivia and horoscope texts.
Telus Communications Inc. · 2015-12
What happened
Third-party premium text services — trivia, daily horoscopes, ringtones — billed Telus and Koodo wireless customers after ads appeared in pop-ups, apps and social media. The Bureau concluded that Telus made, or permitted to be made, false or misleading representations in those ads: the charges landed on phone bills without a disclosure adequate to what the customer was agreeing to. The carrier was the billing rails; the ads rode on them, and the carrier was responsible for what they said.
The consent agreement of 30 December 2015 required rebates of up to $7.34 million to current and former Telus and Koodo customers who were charged for the services from 1 January 2011 onward. Telus was the second of Canada's major carriers to settle the premium-text sweep — Rogers had agreed to $5.42 million in refunds earlier that year.
The principle is the one the Bureau applied across the sweep: a carrier that permits misleading advertising on its own billing relationship is answerable for it, even when a third party wrote the ad and took the money. Owning the bill means owning the claims made against it.
Why it happened
- The ads lived in pop-ups and apps; the charges landed on the phone bill the carrier sent.
- Consent to a recurring charge was not adequately disclosed at the moment the customer clicked.
- Telus permitted the representations on its billing rails — permission made them the carrier's responsibility.
The lesson
A platform that lets third parties bill through it owns the representations those third parties make: permitting misleading ads on your billing relationship makes you answerable for them.
Aftermath
Telus issued rebates to affected customers from January 2011 onward. The premium-text sweep closed with Rogers, Bell and Telus all settled — and disclosure standards tightened for carrier-billed subscriptions.
Sources
- Competition Bureau — Telus customers to receive $7.34 million in rebates as part of Competition Bureau agreement
- CBC — Telus to refund $7.34M in fees for premium text messages
spotted an error? The club wants to know.
More like this
Bell closed the premium-text sweep with the Bureau's biggest refund yet — $11.82M
Comwave sold 'unlimited' internet with a cap — and prices full of fees — $300K
Rogers let horoscope texts bill its customers — $5.42M in refunds
Somewhere, someone solved the problem this company failed at. 2nd Opinion →

Comments · 0
Sign in to join the comments.