Why All The Chatr? Substantiating Performance Claims In Canada

The Ontario Superior Court of Justice recently released its decision on remedies in Commissioner of Competition v Chatr Wireless Inc and Rogers Communications Inc ("Chatr"), 2014 ONSC 1146, confirming that performance claims made about a product or service must be substantiated before the claim is made to the public and that validation of the claim after publication is not enough to avoid penalty under the Deceptive Marketing Practices provisions of the Canadian Competition Act. The decision also provides guidance as to the application of the administrative monetary penalty provisions under the Competition Act.

Background

Rogers, a major provider of mobile telephone services in Canada, and Chatr Wireless, a discount service offered by Rogers, marketed the Chatr services as having "fewer dropped calls" than other wireless telecommunications providers. In 2010, the Competition Bureau initiated legal proceedings against Rogers/Chatr, alleging that the claims were