Telus says in its claim those unlimited data plans do have limits: Mobilicity can use traffic throttling to reduce data speeds if customers exceed certain data usage levels.
In addition to the injunction for violating the Competition Act, Telus wants punitive damages.
The Mobilicity ads misinform potential customers, said Telus’ Hall. “We couldn’t let that go in such a hot market.”
In particular, he said Mobilicity’s conditions of service have “many onerous terms” including a “fair use” policy that can limit wireless service. Mobilicity’s ability to slow data traffic of heavy users shows “that’s not unlimited” service.
Mobilicity’s Lyons refused to go into details about his company’s services because the matter is before the courts.
But he called the attempt to get an injunction “ridiculous.” The statements Mobilicity has made in recent ads it has been making for the past two years, he said. “This is not about customer confusion. It’s about shutting down dialogue (with customers) about contracts because no one’s confused with what we’re saying.”
When asked why shouldn’t Telus be able to go to court if it feels it has been wronged, Lyons said he doesn’t believe anyone is confused when Mobilicity says it doesn’t have contracts.
“What consumers perceive contracts to be, we don’t have those.”
Telus isn’t motivated by a duty to correct alleged misrepresenations, he said, but not wanting a dialogue about contracts.