Telus Takes Mobilicity To Court Over ‘Misleading’ TV Ads Targeting Unlimited Plans

by Gaurav Kheterpal on December 11, 2012

It’s fair to say that Telus isn’t the best of friends with any of Canada’s new wireless carriers, be it Wind Mobile (read Globalive), Public Mobile and now Mobilicity. In its latest move, the carrier yesterday asked the British Columbia Supreme Court to stop smaller wireless competitor Mobilicity from using ads that it considers “misleading”.

Telus is seeking an injunction against Mobilicity to stop it from advertising, broadcasting and distributing the ads, which began last month. On its part, Mobilicity says it’s amused over the allegations as advertisements with the same message are running for more than two years.

Misleading ads can be a tricky proposition, as Rogers found out in August when the Competition Bureau found its claims to be false and misleading.

Of course, the primary concern for Telus – the ads are being broadcast “extensively in British Columbia” which it considers to be home turf. The carrier says Mobilicity ads falsely claim that other carriers place limits on unlimited calling plans by restricting them to evenings and weekends, which isn’t the case with Telus. It further alleges that though Mobilicity says it offers ‘no contract’ wireless plans, there’s a plethora of service terms and conditions involved. The timing of this lawsuit is interesting and I have no doubt that the holiday season traffic has been playing on Telus’ mind.

Mobilicity chief operating officer Stewart Lyons believes the lawsuit is yet another example of the Big Three bullying the emerging carriers. Mobilicity, in particular, has done remarkably well in the last 2 years, openly challenging Canada’s wireless trio-poly and building an envious retail distribution network. Till date, the upstart carrier has managed to strike retail distribution agreements with Loblaw,  7-ElevenWalmart CanadaHMVZellersMetro Stores and The Brick.

Earlier this year, the Competition Bureau asked the Ontario Superior Court of Justice to order Rogers to pay a $10 million penalty, pay restitution to affected customers, stop the Chatr advertisements, and issue a public apology. If Telus were to win an injection, it would be a huge setback for Mobilicity – easily the pick of Canada’s emerging wireless carriers.

Mobilicity and Telus face off in court in Vancouver this Friday.

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Written by: Gaurav Kheterpal. Follow TheTelecomBlog.comby:RSS,TwitterFacebook, or YouTube.


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