Don’t penalize industry over bad actors’ sales practices, CRTC hears

The CRTC should focus its efforts on taking action against telecoms that have been directly accused of unethical sales practices instead of applying blanket rules on the entire industry, smaller providers argued ahead of the commission’s October hearing on the matter. Shaw Communications Inc., Cogeco Inc., and Bragg Communication Inc.’s Eastlink suggested that route in response to the CRTC’s request for comment on alleged misleading and aggressive sales practices. The accusations first came to light in CBC/Radio-Canada stories that featured telecom employees claim those kinds of practices were standard. The federal government ordered the CRTC to look into the matter and complete a report by February next year, even though the regulator initially declined to do so in a decision that irked consumer groups. The government asked the CRTC to explore whether such practices exist, what the companies are doing to address and reduce them, if current consumer protection rules are sufficient and, if not, what’s the best way to strengthen those rules or create new ones. The consultation was launched on July 16 and comments were due Aug. 30. Pointing out there were only three complaints submitted to the CRTC related to its services, Cogeco said in its submission that a “one-size-fits-all” approach to all carriers, regardless of their size and complexity, would “not be appropriate from the point of view of equity, regulatory efficiency and economic rigor.” “Should the Commission’s findings lead to potential measures to remedy sales practices misbehavior from some industry participants, Cogeco invites the Commission to target only the Canadian carriers, large or small, that deliberately and unjustly engage” in such practices, Cogeco added. Those include employees or third parties that disseminate “incomplete, unclear or misleading information” on service terms and conditions, it said. The original allegations of poor sales practices originated with BCE Inc., which has since denied them. In its submission, Bell said it would be “pleased to participate in developing and implementing potential industry-wide recommendations should systemic issues with sales practices be identified.” Of the more than 54 million calls from customers -- out of a total customer base of more than 22 million -- Bell said about 0.05 per cent (or 24,041) were “related to sales practices” that escalated up the company. For Rogers Communications Inc., out of 60 million interactions -- out of 13 million total customers -- the company said the number of complaints it received over the past year represented less than 0.004 per cent of those interactions. Both Bell and Rogers noted in their submissions that part of the issue is the complexity of the business, which offers consumers a wide variety of products, services and plans that could eventually lead to miscommunications or misunderstandings, as Rogers put it. Shaw -- which was adamant about increased competition being the number one aid against the bad practices -- noted that of the 950 interventions filed to the CRTC, only 24, under three per cent, make reference to its sales practices. “If following the completion of the record of this proceeding, the Commission determines that it would be appropriate to place additional restrictions or limitations on certain enumerated retail sales practices that have been found to be misleading or aggressive, any such steps or measures should be targeted to those carriers and those practices that have been specifically found to be misleading or aggressive,” Shaw said in its comments. Eastlink chimed in, suggesting competition would be affected by additional and unnecessary regulatory rules because costs will go up to comply with those regulations, which means higher consumer prices and less money to invest in networks. It also said it does not support “creating rules for the exceptions” -- imposing new rules for the wrongdoing of “two companies.” A recent report by the Commission for Complaints for Telecom-Television Services (CCTS) found consumer complaints spiked by 73 per cent year-over-year in the second-half of 2017. The organization has been the watchdog receiving consumer complaints for the wireless and television industries. Still more, non-disclosure of terms and misleading information prompted 10.9 per cent of complaints to the CCTS in 2016-2017. And some telecoms are requesting the CCTS’s authority be given a boost. Telus Corp., for example, has requested in its submission that the CRTC clarify the CCTS’ responsibilities as it relates to the issue of sales practices. It recommended it infuse the watchdog with a new code of conduct that would allow it to address those kinds of sales practices. The Saskatchewan Telecommunications Holding Corp. (SaskTel) said the relatively few unsatisfactory results coming out of the millions of sales transactions a year for telecom companies actually shows that the efforts of telecom companies to improve customer relationships are improving. The telecoms have said on past quarterly conference calls that their ever-lower defection rates have hinged on their customer-service experience. SaskTel added that existing rules provide “adequate oversight” of these sales practices, a position largely in line with a majority of telecoms submitted comments. The company said the mechanisms already available, including the Telecommunications Act, the Wireless Code, the Television Service Provider Code, the CCTS, and the Competition Act all do a fine job. But the Competition Bureau said in its own contribution that further regulation can’t be ruled out -- so long as the regulator makes those rules no broader than absolutely necessary. — With reporting by Ahmad Hathout at ahathout@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Don’t penalize industry over bad actors’ sales practices, CRTC hears

Broadcast | September 4, 2018

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Don’t penalize industry over bad actors’ sales practices, CRTC hears

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