Telus Suing Mobilicity Over Ad Campaign That Dealt 'Irreparable Harm' to Company

Last week it was revealed that Telus is slashing home internet download limits by up to 50%, which not surprisingly outraged many consumers. Now the Vancouver-based telecommunications company is taking legal action against discount wireless carrier Mobilicity over snarky television ads.

Mobilicity's ads, which began airing in November, hint that when it comes to the Big Three of Rogers, Telus, and Bell, "what you see isn't always what you get." Basically, the startup carrier argues those telcos' unlimited plans aren't truly unlimited, unlike Mobilicity's, which are indeed truly unlimited. Similar ads have run in print form as well.

Telus isn't happy and informed the carrier of such in late November, suggesting it cease the campaign. “Mobilicity has refused or neglected to comply with this demand and continues to make the mispresentations,” legal documents filed December 7 with the Supreme Court of British Columbia said. Telus believes that "irreparable harm" has been dealt to the company by Mobilicity's campaign.

Telus owns upward of 28% of Canada's $19 billion mobile sector, according to the CRTC. Mobilicity controls about 1%.

“We think it’s preposterous, this is the same stuff we’ve been saying for two and half years,” Stewart Lyons, president and chief operating officer for Mobilicity, told the National Post in response to the lawsuit . “They appear to be trying to intimidate us and prevent us from getting our message out.”

A court date has been scheduled for December 14.