Videotron sues Bell for $78.5 million over actions of travelling sales reps

MONTREAL – Videotron has launched a $78.5-million lawsuit against its telecom rival Bell Canada for allegedly contravening Quebec’s consumer protection law in its efforts to recruit new customers.

The Quebec-based company says Bell’s travelling sales representatives flout the law by exploiting a loophole that allows them not to provide these clients with written contracts at the door if they are concluded at a distance.

Videotron alleges in the 11-page statement of claim filed in Quebec Superior Court that Bell sales reps don’t have the required permits.

It also claims Bell sellers call another representative on the phone who takes the order and finalizes the contract, thereby avoiding the need to immediately provide a written contract to the new customer.

Videotron says Bell’s actions put it at a competitive disadvantage by increasing Bell’s chances to convince more customers to sign a contract.

Bell declined to comment because the matter is before the courts.

Companies in this story: (TSX:QBR.B, TSX:BCE)