A letter from Dave on the infamous $40 for 4GB price change

[Dave_M]

Hey Community,

I am writing to you today to let you know that we will not be moving forward with a price increase on the infamous “$40 for 4GB” plan ($120 90-day Province-Wide Talk + Text + 12GB Data), contrary to the SMS that customers on that plan received yesterday.

After sending out an offer to select customers, we heard your feedback loud and clear: we said no surprises, and we surprised you. While all good things must come to an end at some point – that point is not today. As a brand, we have always been proud of our transparency, and of our commitment to our customers. We are sincerely sorry for any frustration caused and we want you to know that this has been a learning experience for us all.

We have been reminded that you, our customers, are vocal and passionate. We’ve seen how much some of you love Public Mobile and we’ve also seen how many of you like the added value that our sister brand, Koodo, has to offer. To that end, we are happy to say that the Koodo offer that our Public customers on the “$40 for 4GB” plan received still remains available for anyone who wishes to take advantage of it.

Thank you for your continued support,

Dave

[DavidNS]

From wikipedia:

"Carlill v Carbolic Smoke Ball Company [1892] EWCA Civ 1 is an English contract law..."

and english contract law is law governing england and wales.  Telus / koodo / public mobile is in canada.

I'll check out the other one though

[lukevader]

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@DavidNSwrote:

I just think if they're going to say a specific plan's price will never change and make a point of saying it for a specific plan, its going to trump a generic TOS.  I am not a lawyer so milage may vary

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Ahh, but it doesnt say it will never change, thats just your interpretation of a sentence. It would have to physically say something like "we will never raise the price of this promo plan even after it expires"

[Halfdome]

Some damage?  No, I think a lot of damage.  I've been pushing public mobile ever since I joined during the promotion.  I was so pleased with the plan and brought over 6 customers with me.  I almost had my daughter and son in law convinced as well,  they even bought the sim card,  but how can I promote something when I have totally lost faith in the company myself.  This was the plan that I would have been happy to keep for life but with those words .. all good things must come to a end.. I know that this is just the first attempt.  Time to move on I think.   The end will come one way or another.  Very poor management move

[Korth]

@kav2001c

Agreed ... "While all good things must come to an end at some point – that point is not today" means PM's initiative hasn't been taken off the table.  They might continue forward with their initial plan, they might abandon it, they might adjust it.  But I don't think even PM really knows what to do yet, they haven't had any time to strategize, this "letter from Dave" is honest enough, it says PM has decided to back down from what they now realize was a mistake, but it's also just a band-aid.

I'm sure the PM staff have been warned to expect some busy days and crazy scheduling at work for the next little while, I don't envy the person who's job is to take notes from threads like this, lol.  Amazing to see so many staunch members of the Public Mobile "community" devolve so quickly into snapping, snarling beasts ... but like I said before, I can't honestly say I'd behave any different if I felt my loyalty and monthly bills were getting jerked around.

[DavidNS]

well i did include the disclaimer that im not a lawyer 🙂

[Mlxg]

@kav2001c

No, there is, and a 30 days notice has nothing to do with anything unless a 30 days notice is specified as required in the contract. Has it been?

[Mlxg]

@lukevader

False. 

For relevant contract law even in advertising, see Carlill v Carbolic Smoke Ball Co. 

In case contract law fails, see advertising regulations R v. 279707 ALBERTA LTD.

Yes, I just pulled these out of an undergraduate commercial law course. 

[ericdvan]

The fact that it's been less than a year that I've been on this plan and there's was already a major 10$/month price increase? And the fact that they said the price would never change? Unacceptable! I am happy all your complaints got to them. Thanks guys! 🙂

[W0507636]

Trust exercise, open up 90 day $120 plan for everyone again so we know we have at least 1 more year before you do something too us again. This would allow people to come back and give you a slap on the hand for adding stress to every one of your customers. You guys broke my love for the company. 

[DavidNS]

Hmmm... perhaps I should come into the forums the next time they offer a promo and spam their TOS so people who think about or have already switched know the "no surprises" is BS?

IMO should it go to court I think Telus would lose despite their TOS.  The level of prominency of the "no surprises" and no rate increase would probably trump the TOS.  In addition, Koodo (who is also owned by Telus) offered a legacy 6gb plan about 7 years ago that is still valid today despite their TOS probably having similar language.

I just think if they're going to say a specific plan's price will never change and make a point of saying it for a specific plan, its going to trump a generic TOS.  I am not a lawyer so milage may vary

[Mlxg]

If Telus really wants, they could just drop the Public Mobile brand entirely. Maybe that's what's coming...?

[kav2001c]

@will13am I agree

Legally there was nothing wrong with what they did

They even gave us MORE than 30 days notice

They backed off to rethink since I am assuming they did not expect the backlash

But it will come again

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@will13amwrote:

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No doubt about it, Dave telegraphed it in his response with the not today phrase.  Migrating to Koodo would eliminate all rewards and so yes we should anticipate all the perks of this service to be taken away in bits and bites.  If the desire is to bunch all of us who are effectively using the service like a post paid service into the Koodo camp, simply nudging us over with a bit of a small perk instead of a squeeze play where a 25% price increase is forced down our throat would have worked.  I would bite if they give me a slightly better offer than what I have now with the 2016 fall promo. 

I totally believe they had the legal right to do what they attempted to do.  They just didn't have the social license to do so.  This is what bit them in the azz. 

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[lukevader]

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@DavidNSwrote:

what you are quoting contradicts what they said when they offered the plan.  So what is someone supposed to believe?

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That's the problem. A company can say or promise what ever it wants but as long as its not in the terms of service its just that...... an empty promise.

[antifreeze1100]

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@lukevaderwrote:

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@antifreeze1100wrote:

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Considering you are admittedly not a Public Mobile customer, and yet you have lurked here ALL DAY constantly belittling the customer objections that ultimately resulted in this reversal (why?!), you might want to give it a rest with this routine. It is you who looks ridiculous. Nothing better to do?

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Oh go boss some other person around.

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Boss you around? That was two questions, four observations, and one polite suggestion; not an order or command to be found. You do you, man.

[as367]

No doubt a number of PM customers switched to koodo and now wish to switch back. I think that the 12GB plan should temporarily be re-introduced to not only regain lost customers but pick up some new ones as well.

[jtiburon]

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@JimmyJazzwrote:

I'm glad to see that the executive at Telus recognised the PR nightmare and I'll will they had created and have backed off.

Let me tell you what I think you did wrong in your bid to move people to postpaid. First, you tried to use a stick, rather than a carrot. You tried to shock us with a massive 25% price increase in order to panic your customers into moving to Koodo. Second, you tried to double down on the false urgency by putting in an artificially short amount of time to switch. Many people had also just renewed, so they'd be forced to walk away from 2/3 of their prepaid funds, and your promised $100 credit would scarcely cover their losses, especially when Koodo didn't even offer a free SIM card (don't even get me started on what a scam charging for SIM cards is).

So, how would I have done it better? First, I wouldn't have started from a negative, so no threatened price rise.

You needed to sweeten the deal. Most of us love the flexibility of the 90 day term, because we can use the 12GB however we choose; there's no penalty for using 6GB in a month, so long as I'm under my 12GB at the end of the 90 days. So the 90 day term essentially makes 4GB at Public Mobile worth more than 4GB at Koodo. Everyone on this plan knows this, why don't you? Koodo should have offered 6GB or more for $40 to induce people to voluntarily switch. Data costs you pennies/GB, don't think we don't know that. Chances are most people would continue to use about the same amount of data as they do right now, so offering more data would cost Koodo/Telus next to nothing over the course of a year. Also, give people time to mull over their options and to run out their prepaid amount before switching.

Try to think about this like actual businessmen who have to entice customers in an actual free and competitive market. The business which offers more value will win customers away from their competitors. There's no need for strong-arming your potential customers. Simply offer them a better deal.

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AMEN!!!!

[jtiburon]

Amen brother....

[Mlxg]

Perfectly timed to coincide with the beginning/near-beginning of promo users' billing cycles (based on when the promo was offered), go figure.

So, if Telus must pay a fee and get annoyingly investigated for every complainted received. We should still file complaints, but this time about this eerie warning of impeding price increases that were specifically barred out of either the promotional material or contract (should go back and read it)? The complaints can't be written off as resolved, and we all get to annoy/siphon legal fees out of Telus/Public, pretty much just for fun! (And also because it's a stupid thing to say.)

[DavidNS]

what you are quoting contradicts what they said when they offered the plan.  So what is someone supposed to believe?

[xianchu]

Dear GM Dave and Telus Corp business leadership team,

Wow I can’t believe I defended this company just a couple months ago to friends and family when PM had various signup promotions. I was a perfectly content PM customer until I received that text message from yesterday. Even though the price increase has since been retracted, it left a terrible taste in my mouth for it’s bullying/ransom tactics by the Telus Corp. I’m glad the larger community of PM immediately recognized what a load of crap they were willing to shove it down our throats and expected us to comply and switch over to postpaid plans. My loyalty and trust with your company was instantly destroyed by that single text message. While I am continuing to use your product in the meantime, I will not forgive or forget your company’s bully tactics. As soon as a better product in the market comes along, I will vote with my hard earned dollars.

Yours truly,

A former loyal PM customer

[JimmyJazz]

I'm glad to see that the executive at Telus recognised the PR nightmare and I'll will they had created and have backed off.

Let me tell you what I think you did wrong in your bid to move people to postpaid. First, you tried to use a stick, rather than a carrot. You tried to shock us with a massive 25% price increase in order to panic your customers into moving to Koodo. Second, you tried to double down on the false urgency by putting in an artificially short amount of time to switch. Many people had also just renewed, so they'd be forced to walk away from 2/3 of their prepaid funds, and your promised $100 credit would scarcely cover their losses, especially when Koodo didn't even offer a free SIM card (don't even get me started on what a scam charging for SIM cards is).

So, how would I have done it better? First, I wouldn't have started from a negative, so no threatened price rise.

You needed to sweeten the deal. Most of us love the flexibility of the 90 day term, because we can use the 12GB however we choose; there's no penalty for using 6GB in a month, so long as I'm under my 12GB at the end of the 90 days. So the 90 day term essentially makes 4GB at Public Mobile worth more than 4GB at Koodo. Everyone on this plan knows this, why don't you? Koodo should have offered 6GB or more for $40 to induce people to voluntarily switch. Data costs you pennies/GB, don't think we don't know that. Chances are most people would continue to use about the same amount of data as they do right now, so offering more data would cost Koodo/Telus next to nothing over the course of a year. Also, give people time to mull over their options and to run out their prepaid amount before switching.

Try to think about this like actual businessmen who have to entice customers in an actual free and competitive market. The business which offers more value will win customers away from their competitors. There's no need for strong-arming your potential customers. Simply offer them a better deal.

[slads]

First of all Congratulations PM customers - Our outcry made Telus back off. They thought they could get away with it but they miscalculated. But this reveral isn't being done out of the kindness of their heart, but because it was so egragious they would have been found in the wrong through the complaints process - so well done the CRTC for setting that up.

But having failed to get through the front door you can expact that once the hubbub dies down they'll try the back door. My bet is they will now incrementally come after the autopay, referall and loyalty discounts next since that's seperate from the $120 rate. They were sucessful in reducing their interent+tv discounts last year by whittling it away slowly enough for it to fall below most customer's radar.  This time it was just too big to miss. So expect to be back on the ramparts fighting the dragon again soon.

[jtiburon]

I just did my complaint as well!

[computergeek541]

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@pakmodewrote:
 But we will be firm, resolute and determined that Telus be penalized for their intended actions. 

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The best way for that would be for customers to cancel or to otherwise take their business elsewhere.  Nothing hurts a business more than losing paying customers.

[lukevader]

Can the terms of service change?

Yes, Public Mobile has the right to change any of the terms of service, including rates, without notice. Changes become effective thirty days after being posted at publicmobile.ca/plans. By purchasing service after a change is posted, including by continuing to top up your account, you accept the current terms of service. You can cancel service at any time, without penalty or cancellation fees.

https://store.publicmobile.ca/pages/terms-of-service

[DavidNS]

People who are thanking Telus / Koodo / Public Mobile crack me up..

Why thank someone because they decided to do what they agreed to do?  It's like people in the work place who expect recognition just for doing their job.  They get recognition its called  a paycheck.  By the same token Telus / Koodo / Public Mobile don't deserve thanks for upholding their end and doing their job.

[W0507636]

There were 6 of us that came over to Public Mobile when the $40 deal was offered just over a year ago. Never have I had a company try to change my phone pricing or push me to a worse deal. Why did I put effort to have people switch to a company that would bait and switch so soon. We all worked hard to gain you PUBLIC MOBILE/KOODO/Telus customers and this is the type of stuff you do. @Dave_M Your welcome. 

[TaintedxxBright]

The trust is gone.

I'm just waiting to see what happens now.

Checking out offers from other carriers. Although I hated Bell and especially Rogers...The betrayal Telus/Koodo/PM just pulled I would have chose Rogers before any Telus subsidiary.  That's how much this fiasco pissed me off. 

For now I will see how long this "good thing" lasts. Keep my eyes open. 

Hey Telus...why don't you sell all the shares of PM back to us somehow and we will take it off your hands. Make it autonomous and we will run it ourselves.

I don't feel safe with PM anymore.

I feel like I was kicked repeatedly and forced into a corner...and then given a half assed apology with the threat I will be kicked again. Lol

I'm just gonna leave it at that cuz I feel like hurling insults now. And that's just unbecoming.

[ulovebass]

Good news.

Telus and PM. please remember that lots of your customer want prepaid service that is more suitable for them and if you keep your promise they will stay with you.

[lukevader]

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@antifreeze1100wrote:

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Considering you are admittedly not a Public Mobile customer, and yet you have lurked here ALL DAY constantly belittling the customer objections that ultimately resulted in this reversal (why?!), you might want to give it a rest with this routine. It is you who looks ridiculous. Nothing better to do?

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Oh go boss some other person around.