MPs grill Rogers CEO on price increases during industry committee meeting

Rogers Communications Inc. CEO Tony Staffieri was met with scrutiny during his virtual appearance in front of the House industry committee, facing questions about the company’s pricing practices. After failing to appear last week, Staffieri was summoned by the committee to field questions on Rogers’ contract prices. The committee had been looking to question the company since October, after Rogers customers complained that they were being charged to pay more than they agreed to for certain services when they signed their contracts. BCE Inc. also appeared before the committee, represented by senior vice-president of legal and regulatory Mark Graham. In October, CBC/Radio-Canada reported Rogers customers took issue with what they explained were unexpected increases to the monthly cost for their TV boxes. Those customers expected their monthly payments to Rogers were locked in for two years after signing up for service, but said they were surprised by increases to the cost of the TV boxes. CBC reported customers with Rogers TV boxes received notices this summer explaining that the monthly price would go up by $7 per box – except for their household’s primary box – in mid-September due to “rising costs to deliver the latest technology.” However, according to CBC, multiple customers said their TV boxes are the same ones they’ve had for years. When asked to explain the price increases, Staffieri said that it is mainly because of the “cost of inputs.” “We upgraded the experience of the set-top boxes,” Staffieri told the committee. “The cost and investments we continue to make through software upgrades are significant and so if customers choose to have that premium experience, then that comes with a fee for the set-top box.” “There are price adjustments that happen on services outside of the term commitment contract,” said the CEO, noting that the first set-top box is included in the base TV package while additional boxes are not. “We make it clear there are other items that are add-ons, and the customer has the discretion to include them or not.” “Just to show up on the bill out of the blue,” retorted Conservative MP Rick Perkins (South Shore-St. Margarets, N.S.), accusing the company of hiding clauses in the fine print of its contracts that allow for unexpected price hikes. “I'd like to know why you think that's okay,” he continued, “and how many other buried costs do you have in the contract that you can jack up, and rip Canadians off on?” Staffieri defended Rogers’ practices, saying that the company is “very clear on what’s included and not included” in its contracts. Staffieri said that Rogers customers also have the choice to use its TV app, which allows customers to view their TV services “on any screen on any device, and they can do that for free.” NDP MP Brian Masse (Windsor West, Ont.), who is responsible for the motion that led to Staffieri’s summoning, was not impressed. “There's nothing a customer of Rogers' gets for free, they've paid for it one way or another,” said Masse. “And I think it shows the distance between where your lifestyle in life is, versus where customers – that we represent – are, because this nickel-and-dime approach is significant.” Masse was critical of the company for having different pricing for customers receiving the same service, accusing Rogers of engaging in a “predatory practice” on its own customers by allowing for different prices for different consumers “based on their advocacy.” The NDP MP and industry critic argued that such practices disadvantage customers with disabilities, or customers that “don’t have the time to spend three to five hours on the phone trying to get a better rate.” “What you see play out is the dynamics of a competitive marketplace,” responded Staffieri, “we are compelled to make sure we put the best value proposition in front of the customers.” The pricing will depend on the time of year when was purchased, it'll depend on the services and products that are included,” said Staffieri. “But I think it's important to stress that we aim to make it easy for customers to interact with us, whether it's by phone, whether it's digitally, whether it's through electronic chat.” The CEO highlighted Rogers’ Connected for Success program, which he said is a way that the company works with customers to make sure that they can get services that fit their budget. READ MORE: - NDP critic calls for Rogers to reverse price hikes or be blocked from federal contracts Conservative MP Michelle Rempel Garner (Calgary Nose Hill, Alta.) asked if Rogers “proactively” tells its customers that certain fees can increase beyond a guaranteed price. Staffieri did not answer directly and continued to emphasize that Rogers is “very clear on what’s included in the term commitment that a customer enters into and what is outside of it.” “What you're doing to me is I think what you're doing to your clients, where you try to dance around the salient details,” responded Rempel Garner. Rempel Garner noted that some experts, such as University of Ottawa associate law professor Marina Pavlović – cited in the CBC’s investigation, have stated that a university-level education is needed to understand telecom contracts. The MP asked if Rogers would support a recommendation to the government that the CRTC regulate a requirement for plain-language contracts. “We do that today,” said Staffieri about the company’s contracts. “We aim and strive to communicate in very simple language. It's in our interest.” MPs consider reporting 'disappointment' to House The meeting closed out with the committee debating a motion proposed by Rempel Garner that the committee report to the House its “disappointment” in Rogers for “not proactively disclosing the true cost of their products and services to consumers…” Liberal MP Ryan Turnbull (Whitby, Ont.) said he agrees that the committee should “express displeasure” with its findings, but proposed an amendment that would have removed the requirement to “report back to the house.” He accused the Conservatives of using committee reports “to give themselves a little break” from what he called an ongoing filibuster, “and to waste time in the house.” The amendment was defeated and the meeting ended before a vote on the initial motion could be completed. phalentm@thewirereport.ca

MPs grill Rogers CEO on price increases during industry committee meeting

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By Phalen Tynes-MacDonald
| December 3, 2024

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