BUSINESS

Telus To Pay Customers Up To $7.3M In Rebates For Misleading Ads

12/30/2015 11:42 EST | Updated 12/30/2016 05:12 EST
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TORONTO, CANADA - JUNE 28: The exterior of the Telus building next to the Air Canada Centre is viewed on June 28, 2014 in Toronto, Ontario, Canada. Canada's most populous city is undergoing a major economic boom with high-rise construction and renovation projects underway throughout the downtown and outlying neighborhoods. (Photo by George Rose/Getty Images)
OTTAWA — Telus (TSX:T) has become the second Canadian telecommunications company to reach an agreement with the Competition Bureau over its participation in misleading premium text message services.

The federal agency says Telus will issue rebates of up to $7.34 million to some of its existing and former wireless customers over false or misleading representations in advertisements for services that sent trivia questions and ring tones through texts.

Telus advertised the premium texts in pop-up ads, apps and on social media.

The move comes after the Competition Bureau launched an inquiry in 2012 over certain third-party services that the country's biggest wireless carriers billed customers without their permission.

An agreement was reached with Rogers Communications (TSX:RCI.B) earlier this year, though legal proceedings are still outstanding against Bell and the Canadian Wireless Telecommunications Association.

Telus has also agreed to donate $250,000 for research on consumer issues.