Competition Bureau reviewing next steps in the Rogers’-Chatr dropped call case

OTTAWA – The Competition Bureau is reviewing what it calls a “modest” $500,000 penalty imposed on Rogers Communications (TSX:RCI.B) for making unsupported performance claims for its talk-and-text brand Chatr.

The bureau also says it’s also reviewing the decision by Ontario Superior Court not to issue an order to prevent Rogers from making similar kinds of performance claims in the future.

Four years ago, new player Wind Mobile had filed a complaint with Competition Bureau over Rogers’ claims that its Chatr brand had fewer dropped calls and a better network than its new wireless competitors.

The bureau had asked that the court impose a $10-million fine on Rogers, the maximum amount allowable.

Although it appeared unhappy with the size of the fine, the bureau says it was pleased that the court recognized in its decision, which was released Friday, that Rogers didn’t do adequate testing to support the claims.

Chatr was launched in 2010 by Rogers, which also owns Rogers Wireless and Fido, to compete in the talk-and-text market.