Comwave fined over $300,000 by Competition Bureau for misleading advertisements

Comwave, a Toronto-based provider of long distance, Internet and VoIP services for consumer and business customers, has been fined $300,000 by the Competition Bureau.

The Competition Bureau conducted an investigation and found the company falsely misleaded the public “in regards to charges and the level of service for internet and home phone connections.” As a result, Comwave has been fined $300,000 in penalties and also agreed to pay $60,000 towards the costs of the Bureau’s investigation.

The Bureau found Comwave’s advertisements misrepresented the rate is charges for its telecom services, and also revealed that its “unlimited” internet and home phone services were not acutally unlimited as there were monthly caps on usage.

In addition to the monetary payment, Comwave will establish a corporate compliance program specifically designed to prevent a similar issues from happening in the future.

Matthew Boswell, senior deputy commissioner of competition, said, “When shopping around for telecommunications services, consumers deserve clear and accurate information in order to make informed purchases. Comwave cooperated with the Bureau’s investigation and is correcting its advertisements to better reflect the services offered by the company, along with associated fees.”

[source]Competition Bureau[/source]