Rogers customers called the contract misleading because the cost of the TV box increased by $7/month

When Cathy Cooper signed a contract with Rogers Communications four months ago, she said a sales representative told her that the monthly prices for TV and internet services were guaranteed for two years.

So he was shocked to see his monthly bill increasing just three months later, and called the telecom giant to find out what was happening.

That’s when he learned that the TV boxes in his house cost $7 each, except for one box that was still included in his monthly package.

Cooper has six TV boxes, because his grown children and a grandchild live at home with him.

“They [Rogers] gouging people,” Cooper said, sitting in his kitchen in Sidney, B.C., on Vancouver Island. “That’s not right.”

On the phone with Cooper, a Rogers representative explained that equipment like TV boxes are considered a monthly rental — separate from basic TV service — and provisions in customer contracts say rental costs are subject to change.

“Basically, they’re allowed to do it,” Cooper said. “I’m frustrated.”

A public policy and technology expert said the way Rogers’ contracts were presented appeared to mislead customers.

“This is definitely a bait and switch,” said Vass Bednar, executive director of the Master of Public Policy in Digital Society program at McMaster University.

“You sign up, you lock in, and suddenly you’re out of luck.”

Bednar dismissed the price increases as a “lazy” move by Rogers – to squeeze more money from customers after last year’s merger with Shaw Communications.

“Like, ‘Hey, we already have this [customer] basics,'” he said. “‘Why don’t we raise the prices of things they’re already buying and see what happens?'”

Rogers spokesman Zac Carreiro told Go Public that no one was available for an interview.

In a statement, he said the company was “committed to providing the best entertainment experience” and was making “major investments” in technology.

‘Rising costs’

All customers who own the Rogers TV box, called the Ignite Entertainment Box, received a notice on their monthly statements this summer, explaining that the price increase would be effective mid-September and was due to “increasing costs to deliver the latest technology.”

But Cooper – and other Rogers customers who contacted Go Public – questioned what technology had been upgraded. They said their TV box was the same one they had for several years with previous Shaw customers.

“They’re three to four years old,” Cooper said. “It’s all Shaw equipment.”

Carreiro, the spokesman, did not explain why some customers’ TV boxes were several years old. He said his company will spend $4 billion in capital investments this year, including equipment and software upgrades for hundreds of thousands of TV customers.

Toronto’s Paul Greenberg signed an internet and TV contract with Rogers in March – believing he also has a two-year fixed price.

Instead, his bill for two additional TV boxes rose from $10 each month to $17 per box.

“This is unacceptable,” Greenberg said. “No one told me the boxes weren’t included.”

She spent several hours on the phone with Rogers and was able to get $5 off her monthly bill and a one-time credit of $100, but said she still feels cheated.

“I think it’s disgusting that you have to call and fight,” he said.

The cost increases come on the heels of record earnings for Rogers which, in addition to its telecommunications and wireless companies, also owns radio and TV stations across the country and has stakes in several professional sports teams.

Last year, the company earned $19.3 billion – a 25 percent increase over the previous year, although profits fell nearly 50 percent due to the Shaw acquisition.

Cooper, Greenberg and others said they asked Rogers if they could buy the TV box instead of renting it, and they were told that wasn’t an option.

It concerns Bednar.

“It’s not even a rent-to-own model, where you pay the costs over time,” he said.

“You simply pay to rent the infrastructure necessary for the services you want to receive.”

Carreiro said renting TV boxes is “the industry standard.”

Controversial merger

When Rogers announced plans to purchase Shaw, the Canadian Competition Bureau opposed the merger, citing concerns that eliminating Shaw as a competitor would result in harm to consumers, including price increases.

At the time, Rogers CEO Tony Staffieri promised lower prices for customers and dismissed competitive concerns.

Earlier this year, Rogers raised the prices of some cell phone, internet and landline phone plans.

But Carreiro said Rogers customers who combine TV with internet have seen prices “drop five percent since the merger” and said “the cost per 5 GB of mobile data has dropped 50 percent.”

A Competition Bureau spokesman said they remained opposed to the takeover.

“We have… observed that Rogers no longer offers prices comparable to Shaw for bundled products and no competitors have emerged in Alberta and British Columbia since the merger to replicate the competition Shaw brings in that regard.”

Bednar watched the Rogers/Shaw merger closely, and said the takeover left many customers frustrated and angry.

“A lot of people feel defeated,” he said.

He said federal authorities should empower consumers by demanding that telecommunications companies give customers better choices when they are dissatisfied with prices or service.

“I would love to [customers] to find an affordable way to get out of that contract,” Bednar said.

Currently, all telecommunications companies have clauses that require customers to pay hefty fines to cancel their contracts.

In Cooper’s case, he had to pay $720 to get out of a contract he says he was misled when he signed.

“This just adds to… the defeats and obstacles that the community is feeling,” Bednar said.

Go Public requested an interview with Industry Minister François-Philippe Champagne, but was told he could not attend.

In a statement, spokesman Justin Simard said the government is “committed to encouraging competition in the telecommunications sector” and pointed to data from Statistics Canada that shows overall prices for mobile phone and internet services have fallen over the past year (Ignite TV requires an internet connection).

Rogers’ complaints grew

Rogers customers appear to be increasingly frustrated with the company.

According to the latest data According to Canadian telecommunications mediator, the Commission for Complaints for Telecom-television Services (CCTS), Rogers is the service provider with the most complaints, accounting for more than a quarter of all complaints – mostly regarding wireless services.

In the second half of 2023, CCTS reported that complaints against Rogers skyrocketed, increasing 118 percent compared to the same period the previous year.

One of the main complaints is that the contracts do not match what customers expect they are agreeing to pay, or that the rules surrounding the agreements are unclear.

A CCTS spokesperson said the organization “has been closely monitoring” increases in equipment rental fees and has received “several complaints about Rogers’ changes since September.”

He said if customers believe the increase is contrary to what their service provider has specifically promised, they should seek to address their concerns and if they are not satisfied, can lodge a complaint with the CCTS.

After calling Rogers “countless, countless, countless” times, Cooper said he was able to negotiate a one-time credit of $315.

He also returned two of his six TV boxes to keep costs down, but he said his frustration with Rogers is far from over.

She hopes she will have to keep calling and keep fighting to get her monthly bills under control.

“I haven’t had a single sensible bill since Rogers took over,” Cooper said. “The last one came yesterday and it’s still not done.”

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