CRTC calls for administrative monetary penalties at House committee

OTTAWA—CRTC officials appeared before the House Standing Committee on Canadian Heritage Tuesday where they called for the power to impose administrative monetary penalties across all of its regulated sectors. “This would allow the commission to adopt a less restrictive approach to regulation and ensure a level playing field for all competitors as we move forward into the opportunities of tomorrow,” Namir Anani, executive director of CRTC policy development and research, told the committee. Anani did not say how to create the expanded powers for the commission, but Michael Janigan, executive director of the Public Interest Advocacy Centre (PIAC), said in an interview that government would need to amend the Telecommunications Act and the Broadcasting Act to allow the CRTC to impose administrative monetary penalties across the board. “I think the difficulty is that there has been no appetite to open up either of those acts for review by the minority Parliament,” Janigan said. “I think that’s the principal roadblock.” Currently, the CRTC can only impose administrative monetary penalties on companies that breach the telemarketing rules and call numbers listed under commission’s national do-not-call list. John Traversy, the CRTC's executive director of communications, told The Wire Report that the commission would like the government to amend the CRTC Act instead of the broadcasting and telecom acts. "It's less controversial and it would provide us with the general powers to use administrative monetary penalties to cover situations that are within our jurisdiction," he said. Sheridan Scott, a partner with Bennett Jones LLP in Ottawa and former head of the Competition Bureau, agreed that the government does not have an interest in opening up both acts in a broad debate, and said focused amendments could be possible. Scott said the absence of financial consequences for regulatory breaches fails to create incentives for compliance and contributes to situations in which companies are primarily concerned with their reputations. NDP MP Charlie Angus said at the committee meeting Tuesday that a lack of clear enforcement measures for the CRTC can lead to an anti-competitive environment in the industries it regulates. The 2006 Telecommunications Policy Review Panel Report recommended creating administrative monetary penalties for the commission. The heritage committee also heard from the CBC Tuesday as part of its study of emerging and digital media. Genevieve Rossier, executive director for Internet and digital services at Radio-Canada, discussed the broadcaster’s successful Tou.tv platform, which offers a large selection of francophone television content online. Rossier told the committee the platform has had 18 million video viewings since it launched in January. Bloc Québécois MP Carole Lavallée asked Rossier about bandwidth caps and how some home Internet customers might be charged extra for streaming video and exceeding their monthly data limits. Rossier suggested that some of the surcharge fees—paid to Internet service providers like Videotron Ltd. when customers exceed their caps—should be contributed to support creative Canadian content online. “The fact that 18 million videos were viewed means that there was a need for this service and people may be willing to spend a little more on extra bandwidth to be able to watch more shows,” Rossier said. The Heritage Committee is expected to conclude its hearings on digital media with a final meeting on Nov. 16, 2010. jmigneault@thewirereport.ca

CRTC calls for administrative monetary penalties at House committee

Broadcast | November 3, 2010

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