Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
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.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
3M issues recall for noise-reducing earmuffs due to potential breakage
April 30, 2024 | Product Recalls
10 thoughts onTelco Ooma Faces Proposed ‘Free Home Phone’ Class Action in Canada
well depends on how you really look at it… basicaly it is the government getting there share because of the 911 services arrangement and also the taxes for such items… the service is free… it is a good deal… but you have to pay for 911 and taxes on top of that.. i like many other yes we understood the wording as free… like magic jack.. you buy it and its free for a while… you buy the ooma.. your getting the same or similar offering but have to pay for the 911 and taxes on that surcharge.. but all calling in canada is free.. for 159$ you should get something.. everyone has a cellphone now these days.. pdf replaces fax.. it does work as a modem fax line aparently.. could be some things there you might like..
Description Amount
Regulatory Compliance Fee (What’s this?) CAD $2.96 …
911 Service Fee (What’s this?) CAD $2.43 ….
Provincial and local taxes, fees and surcharges (What’s this?) Details AD $1.79
Click here to read our full Terms and Conditions. Total: CAD $7.18
if you look closer you will also see ooma and sprint did a deal for phone service… if you look harder you will find the app textnow is the same as the familiar ooma app and also produced by sprint. difference is tho., its 100% free right from the start as an app instead of voip hardware.
sip service is cheap so is a sip box. the ooma has a little more expense.. BUT it is also an ethernet Bridge for wifi to wired connections.. you can put a telephone and c omputer together in any room and get some work done with out any significant costs. its not free tho.. just under 8$/month.. ooma is a bit of an underdog here.. its still a good deal.. just not advertised properly until you get the box and try to hook it up..
Pls add me to the list of disappointed customer s
I assume this is for CANADA only? I live in the US. Plz advise.
Add me
Add me
Add me
Add me please
People like you should live in the US. Mislead? It states right in the billing details what the taxes and fees represent. Way to potentially ruin one of the better services we have available in the telecom options in Canada. If Ooma is put out to pasture then we’ll be forced to go with Bell or Rogers, who are nothing but greed and have on record he worse customer support.
Consider your $6.00 a month service vs a $25 a month service with the big telecoms.
Smarten up with your sue everybody mentality.
I completely support this class action! Not to mention, if you don’t opt in to their “premium plan” upgrade (for an additional $9/month), which includes telemarketer blocking, you will be bombarded with marketing calls at all hours of the day or night. I never had a problem with those calls prior to moving to Ooma, so it sure seems like they sell names/phone numbers to 3rd parties as soon as you transfer your line to Ooma.
For the record I was with Bell for years and had significant telemarketers calling typically around dinner time until 9pm. When I switched to Ooma basic plan I would estimate that 75% of these calls stopped. I eventually upgraded to the Premium plan to enjoy another phone line as well as free long distance calling and home security service. So, your comment about being forced to upgrade to a premium package to prevent telemarketers holds no weight. I’ve been employed with Bell for almost 10 years and can speak to this with confidence. Perhaps you have posted your phone number online somewhere in the past, this is often how telemarketers obtain these calling lists. Before you bash Ooma, consider that it’s likely your own doing on why you are receiving telemarketer calls.