Long-distance prepaid calling cards

In April 2006 and August 2006, a long-distance prepaid calling card company sought a written opinion on the application of the Competition Act to the proposed marketing representations and promotional plans for one of its prepaid telephone calling cards. The Bureau examined the proposals under both the criminal and civil false or misleading representations and deceptive marketing practices provisions of the Act.

On June 9, 2006 and October 20, 2006, the Bureau provided its opinion that, with respect to the promotional materials for the prepaid telephone card, that there were sufficient grounds to launch an inquiry under section 52(1) and paragraph 74.01 of the Act for the following reasons.

• The materials contained fine print disclosures contradicting the general impression created about the advertised rates and the telephone minutes available.
• The materials used ambiguous language and complex disclaimers that could mislead consumers when choosing the products.
• In some cases, it appeared to be nearly impossible to achieve the long-distance minutes advertised.

(3099991)

(3100446)