Misleading Ads Legal Tussle: Mobilicity – 1, Telus 0

by Gaurav Kheterpal on December 20, 2012

Telus and Mobilicity were at loggerheads with each other last week when the former asked the British Columbia Supreme Court to stop smaller wireless competitor Mobilicity from using ads that it considers “misleading”. While Telus sought an injunction against Mobilicity to stop it from advertising, broadcasting and distributing the ads, which began last month, Mobilicity said it’s amused over the allegations as advertisements with the same message are running for more than two years.

Anyway 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.

None the less, Mobilicity can breathe easy for now as a court injunction requested by Telus was denied Wednesday by the British Columbia Supreme Court. While Mobilicity claims it to be to a “colossal” victory, I have no doubt that this is just the start of an ugly legal tussle. It would hardly be surprising if Telus hits back with all its might and hits Mobilicity where it hurts most.

Though Telus claimed that it has suffered irreparable harm as a result of Mobilicity’s wrongful acts, the B.C. court doesn’t see any damage to either party in the event that the injunction is either granted or refused. It’s no surprise that Telus has requested a full hearing with the Supreme Court of British Columbia to be held some time in the New Year.

Telus also downplayed Mobilicity’s “colossal victory” claims, stating it’s just an “interim order” and “does not impact our pursuit of a full hearing.”

In a press statement, Stewart Lyons, Mobilicity President and COO, stated that “We are happy with the Court’s ruling and that Canadian wireless consumers are still free to engage in a dialogue with each other about the many challenges facing Canadian wireless consumers – that’s what our TV commercial is all about.” He adds that TELUS attempted “a ridiculous bullying tactic and an unnecessary distraction during our busy holiday season. I hope now that Telus will focus on its business and improving customer service as opposed to trying to intimidate a smaller competitor.”

While Mobilicity can continue with the ads for the upcoming holiday season, I, for one, won’t rule out more twists and turns as this matter comes up for a full hearing next year.

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


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