CRTC consulting on new consumer protection measures

The CRTC has launched three consultations it says are aimed at improving consumer protection measures to make sure Canadians have more flexibility to choose the mobile and internet services they need. The new measures being considered include improving customer notification requirements for when a mobile or internet contract is about to end, banning telecom service providers (TSPs) from charging cancellation fees meant to discourage customers from changing their plan, and requiring TSPs to offer self-service mechanisms. Amendments made to the Telecommunications Act, contained in the federal budget and signed into law earlier this year, require the CRTC to implement such consumer protection rules. “We've been looking at, over the last number of months, a number of precise elements where failings may be occurring, where the service providers need to do a better job to make sure Canadians are well-informed, that they are well-served, and that they are getting the services that they need and want – and deserve, quite frankly – at affordable prices,” said Scott Hutton, the CRTC's vice president of consumer, analytics and strategy, in an interview with The Wire Report. Existing rules in the Wireless Code and the Internet Code require TSPs to notify their customers 90 days before the end of their contract. The CRTC is asking how it can improve that requirement, considering whether to require TSPs to include information about other similar plans, notify customers before any promotional pricing ends, and improve notifications for customers roaming abroad. The CRTC put forward the preliminary view that “providing Canadians with a list of all telecommunications service plans offered by their service provider is not effective. Rather, it would be more helpful for Canadians to be informed about plans offered by their current provider that best align with their existing level of service to ensure that they can choose a plan that best meets their needs and to avoid being oversold plans they do not want.” The commission also proposes including in the 90-day notice requirement: the total price for a service, broken down into one-time fees and monthly fees, including taxes; the services included in the contract, such as voice, text, and data services, and any limits on the use of those services; equipment fees; network coverage (for mobile plans); and the network speed. READ MORE: – NDP critic calls for Rogers to reverse price hikes or be blocked from federal contracts When it comes to fees, the CRTC is asking how to ensure that customers can modify or cancel their plans without fees acting as a barrier. It proposes banning fees related to the activation or modification of a service plan, or fees meant to discourage consumers from modifying or cancelling their plan. When customers want to cancel their mobile or internet services, some service providers require their customers to contact customer representatives first, explained Hutton, “sometimes that's good because they're getting a better deal directly from the company that they are working with, but sometimes they're being sold more services than they may be needing.” “Self-service will allow the Canadian who is well-equipped, knows what they want, knows what they need, to purchase exactly what they need without the intervention of customer service,” he said. The CRTC is asking what requirements it should impose on TSPs so they can best implement such self-service mechanisms, including how to ensure that persons with disabilities can fully access them and whether the CRTC should limit potential fees that may be charged for using these services. “The main issue is prices are down, there are better prices out there, but the data is also showing Canadians don't seem to be benefiting from them just yet,” Hutton stated. “How do we make that easier?” Stakeholders have until Jan. 9, 2025 to submit comments on all three proceedings. Replies are due Jan. 25. phalentm@thewirereport.ca

CRTC consulting on new consumer protection measures

Regulatory |
By Phalen Tynes-MacDonald
| November 22, 2024

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CRTC consulting on new consumer protection measures

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