Who’s Lying?
Bell Canada or BCE Inc. has been fined by the Competition Bureau in Canada for misleading consumers with pricing of some of it’s products and services.
Who are they lying to?
The bureau alleged that since December, 2007, Bell has misrepresented to consumers the prices of some of its wireless, Internet, home phone and satellite TV services by tacking on hidden fees that make its advertised price impossible to obtain. Basically they would say that you could get a bundle of services for around $69 / month when in fact after all of the fees were added the price was closer to $80/month.
Why are they lying?
This is nothing new in the telecom industry. They advertise a low monthly fee and then add the 911 fee, the activation fee, and who know what else they add. In the highly competitive telecom industry, they are trying to attract customers to sign a contract. Consumers are lured into the store for the low advertised price and just when the are about to complete the transaction, the fees are added on and most consumer at that point just signup and don’t bother contesting the added fees.
At least in the case, the consumers have won the battle and Bell Canada has to pay a $10 million penalty for their livertising actions.
“I am pleased that Bell cooperated with the Bureau’s investigation and is taking steps to correct the misleading advertisements,” said Melanie Aitken, Commissioner of Competition. “When a price is offered to consumers, it must be accurate. Including a fine-print disclaimer is no licence to advertise prices that are not available.”
More stories on this
Competition Bureau Press Release
Globe and Mail – Bell hit with $10 million penalty
Competition Bureau dings Bell with $10 million penalty for misleading advertising
