Telco Ooma Faces Proposed ‘Free Home Phone’ Class Action in Canada

Telecommunications giant Ooma is set to face claims it misled the public by advertising a “free” home phone service that was allegedly not free.

A proposed class action was filed in the Federal Court of Canada Feb. 3, alleging Ooma, Inc. and Ooma Canada Inc. violated Canada’s unfair competition legislation in relation to their FREE home phone service offer. 

Ooma, Inc. is an American publicly traded telecommunications company based in Silicon Valley. 

In the Statement of Claim, representing attorneys allege that Ooma markets a FREE or $0 Basic Home Phone on all its marketing channels, using language like “Free Plan” and “crystal-clear nationwide calling for free.” 

In the filing, plaintiff Fiona Chiu of Ontario claims she signed up for the Basic Home Phone in 2013. She said over the seven years she was signed up to the plan, she was charged monthly fees and taxes of between $4 and $5.41. 

The filing alleged that the charges included a “911 service fee” and “regulatory compliance fees.” Lawyers for the proposed Class claim those charges were going directly into Ooma’s pocket.

“The fees are not charges imposed by third-parties or charges imposed directly on the Class Members by regulatory authorities, but are actually fees charged by Ooma, Inc.,” the filing stated.

It said the Class Members basis for claim was that Ooma breached clauses under the Canadian Trademarks Act and Competition Act. 

“The defendants use of the word FREE or “$0” to describe their Basic Home Phone is false in material respect because the Defendants’ Basic Home Phone is, in fact, not free,” the claim stated.

This proposed class action is on behalf of all individuals living in Canada who subscribed to Ooma’s FREE home phone service at any time after August 3, 2014.

The class action is seeking to recover damages, including punitive damages of $500 per Class member, an accounting of profits and/or a court order to stop Ooma from using the word FREE to describe their home phone service.

Lawyers for the proposed Class said they would be asking the court to certify the action on an “opt-out” basis, meaning members would be automatically included in the Class unless they asked to opt-out. 

They recommended all customers keep copies of monthly bill statements with Ooma, credit card receipts, and any screenshots they may have where Ooma advertised the home phone service as FREE.

Are you a customer of Ooma who has been misled by false advertising? Tell us your thoughts in the comment section below!

Counsel for the proposed class action are Me Jérémie John Martin of Champlain Avocats, Me Sébastien A. Paquette of Champlain Avocats and Mr. Simon Lin of Evolink Law Group.

The Ooma Free Home Phone Proposed Class Action Lawsuit is the Proposed Class Proceeding Fiona Chiu and Ooma, Inc., Ooma Canada Inc., Case No. T-214-21 in the Federal Court of Canada. 

Read More Lawsuit & Settlement News:

Do You Qualify: Canadian Bank and Credit Union Overdraft & NSF Fee

CERB Class Action Lawsuit Filed After Government Asks For The Money Back

Do You Qualify: Dell Data Breach Privacy Lawsuit Investigation

Microsoft Software Class Action Settlement