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ARTICLE · 01 NOVEMBER 2013

Breakage And Prepaid Phone Plans Challenged In Court

Cassels
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The Ontario Superior Court recently certified a class-action lawsuit against Bell Mobility in which the plaintiff challenges the company’s practice of putting expiry dates on its prepaid cell phone cards and its practice of treating any unused, outstanding balance as forfeited.1 Among other things, the plaintiff claims that the company’s practices contravene Ontario’s Consumer Protection Act, 2002 (the "CPA") and, in particular, its Gift Card Regulation.

CanadaFinance and Banking
Terry Hall
Terry Hall
Sarah McKinnon
Sarah McKinnon
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The Ontario Superior Court recently certified a class-action lawsuit against Bell Mobility in which the plaintiff challenges the company's practice of putting expiry dates on its prepaid cell phone cards and its practice of treating any unused, outstanding balance as forfeited.1 Among other things, the plaintiff claims that the company's practices contravene Ontario's Consumer Protection Act, 2002 (the "CPA") and, in particular, its Gift Card Regulation.

It is important to note that this ruling does not decide the merits of the case, but allows the plaintiff's claim to proceed to trial as a class action to determine several issues involving the company's practices handling expiry dates and regarding Ontario's Gift Card Regulation. Bell Mobility estimated to the Court that there are approximately 1,040,400 people in the class – being persons who purchased prepaid cards branded Bell Mobility, Virgin Mobile and Solo Mobile, paid on a pay-per-use basis, with balances in

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