Rogers Dodges Major Penalty For Failing To Test Performance Claims

The Ontario Superior Court recently imposed an administrative monetary penalty (AMP) of $500,000 against Chatr Wireless Inc. and Rogers Communications Inc.¹ This amount was significantly lower than the $5 to $7 million AMP sought by the Commissioner of Competition. In addition, the court denied the Commissioner's request to issue a 10-year prohibition order that would have prevented Chatr and Rogers from engaging in similar reviewable conduct.  

The decision highlights the importance of performing adequate and proper tests before one makes a performance claim about a product, and provides guidance on how a court will determine the AMP amount  if a party violates the Competition Act's misleading advertising provisions.