Telecommunications: Consumers Need the Right Kind of Help
Press Release
FOR IMMEDIATE RELEASE
Tuesday, July 24, 2007
Telecommunications: Consumers Need the Right Kind of Help
OTTAWA –Canadian consumer groups today condemned a limited and hasty telecommunications industry ombudsman proposal and instead called on the Canadian Radio-television and Telecommunications Commission’s (CRTC) to hold an open, public process towards creating an independent and effective telecommunications consumer protection agency.
The British Columbia Public Interest Advocacy Centre, Consumers Council of Canada, Option consommateurs, Public Interest Advocacy Centre and Union des consommateurs, called the industry’s Commissioner for Complaints for Telecommunications Services (CCTS), announced yesterday by Bell Canada, Rogers, TELUS and several other telephone, wireless and Internet providers, inadequate to protect consumers in their disputes with these telecommunications giants. The limited powers and type of problems the telecommunications providers have seen fit to allow the CCTS to handle, as well as its clear lack of independence from industry severely limits the ability of such an organization to truly resolve consumer complaints in the effective and efficient manner which consumers deserve.
A recent Cabinet directive issued at the behest of the Minister of Industry, Maxime Bernier, requires the creation of an independent consumer agency, approved by the CRTC, as a counterbalance to the rapid deregulation of local telephone service and the existing deregulation of wireless and Internet services. The report of the Telecommunications Policy Review Panel (TPRP), supported by the Minister and Industry Canada, likewise recommended the creation of an independent and effective “Telecommunications Consumer Agency”. The CCTS created by industry players falls well short of providing the minimal consumer protection guarantees recommended by the TPRP, notably the power to adequately compensate consumers.
As the CRTC has already indicated its intention to hold a public proceeding to hear proposals for such an agency, the consumer groups above decry the haste with which the telecommunications providers have put in place a flawed organization which effectively serves only the interests of the industry. The consumer groups further denounce the strategy of the large telecommunications companies that, while appearing to respond to the government’s requirements for such an agency, uses the creation of the CCTS as a green light for deregulation of local telephone service while painting the CRTC and its public process into a corner. Contrary to the suggestion in the CCTS press release yesterday that consumer groups were consulted and content with the proposal, the consumer groups above clearly indicated their dissatisfaction with it and their intention to oppose the proposal, as such, before the CRTC.
As a result, the consumer groups call for the soonest possible public process to create a sanctioned telecommunications consumer protection agency and call upon the CRTC to delay the approval of local telephone service deregulation prior to the approval and implementation of such an independent and effective agency. The consumer groups recommend to consumers in the meantime to refer their complaints with telecommunications service providers to their provincial consumer protection ministries and agencies and to the CRTC.
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For more information:
Me Marie-Eve Rancourt,
Analyste politique et réglementation en matière de télécommunications,
radiodiffusion et vie privée
UNION DES CONSOMMATEURS
6226, rue Saint-Hubert
Montréal (Qué.)
H2S 2M2
Tél. : 1(514) 521-6820, poste 211
Fax : 1(514) 521-0736
Courriel: rancourt@consommateur.qc.ca
Site web: http://www.consommateur.qc.ca/union
Patricia MacDonald
Staff Lawyer
BC Public Interest Advocacy Centre
#208-1090 W Pender St
Vancouver, BC V6E 2N7
Phone: (604) 687-3063
patmac@bcpiac.com
Do Not Call List Rules to Protect Consumers
Ottawa – Tuesday, July 3, 2007 – Canada’s national Do Not Call Registry inched closer to reality today as the Canadian Radio-television and Telecommunications Commission (CRTC) announced the Do Not Call List ground rules.
Today’s CRTC decision was welcomed by consumer groups as it provides consumers with a reasonable outline of what to expect from Canada’s Do Not Call list and allows the search for the operator of the list to go ahead. The list operator will register names on the list and collect fees from the telemarketing industry to pay for it. Consumers will not be charged to place their names on the Do Not Call list.
John Lawford, Counsel with the Public Interest Advocacy Centre (PIAC), stated, “Consumers have been waiting for this list for too long already but these rules are a reasonable compromise between consumers’ right to be left alone and businesses’ desires to sell services over the telephone. Hopefully we can get a list operator and get this going.”
Lawford noted that when the list does come into effect, consumers will have to be on their toes. “You will have to re-register on the Do Not Call list every three years, which is a great inconvenience to consumers. And it will take a while for people to understand that the Do Not Call list will not stop charities from calling you nor companies with which you have done business in the last 18 months.” On the other hand, Lawford noted, the CRTC chose to tighten up the “existing business relationship” definition in this decision, limiting businesses relying on the exemption to their own customers only, not customers of any of their affiliates. “For example, if you are on the Do Not Call list” said Lawford, “the phone company can’t call you about satellite or Internet service if you aren’t already a customer of that service. Likewise, your bank can’t call you about insurance offered by their insurance company, just because you are a bank customer.”
Rules for enforcement, including a fining power of up to $15,000 per violation by a telemarketing company, should help to ensure the Do Not Call list is respected. “We are pleased that the Commission has decided retain this enforcement power itself and not delegate it to the list operator” said Lawford.
The CRTC’s decision also set final rules for all other aspects of how telemarketing, whether by phone or fax, such as permissible telemarketing hours. Finally, since this is a new system, said Lawford, a public awareness campaign is needed. “The CRTC’s requirement on the phone companies to explain the Do Not Call list and telemarketing rules to customers in the front of the white pages and on their websites is really key.”
PIAC is a non-profit organization that provides legal and research services on behalf of consumer interests, and, in particular, vulnerable consumer interests, concerning the provision of important public services.
For more information:
John Lawford
Counsel
Public Interest Advocacy Centre
ONE Nicholas Street, Suite 1204
Ottawa, Ontario
K1N 7B7
(613) 562-4002×25 (office)
(613) 447-8125 (mobile)
(613) 562-0007 (fax)
PIAC slams BCE-Telus merger proposal
For immediate release
Attention: News/Business editors
PIAC slams BCE-Telus merger proposal
(OTTAWA)—The Public Interest Advocacy Centre slammed the BCE-Telus merger proposal as contrary to the interests of ordinary Canadian consumers.
“The idea that creating a gigantic company with about 70% of all telecom revenues could be good for consumers belongs in a satire not in economic policy,” Michael Janigan, Executive Director of the Public Interest Advocacy Centre stated.
“We have had most meaningful consumer protection, through regulation, done away with by the current government and now we are going to try to finish off competition,” Janigan said.
The Public Interest Advocacy Centre is a non-profit Ottawa based organization that has represented residential consumers in CRTC and government policy decision-making for over thirty years.
Michael Janigan
Executive Director and General Counsel
(613) 562-4002 ext 26
mjanigan@piac.ca
Media Release: Consumer Groups appeal Ontario Energy Board¹s Billion Dollar Giveaway
Attention: News/Business Editors
Consumer Groups appeal Ontario Energy Board¹s Billion Dollar Giveaway
(OTTAWA)—The Vulnerable Energy Consumers Coalition, (VECC) together with
the Consumers Council of Canada (CCC) and the Industrial Gas Users
Association (IGUA) today appealed the decision of the Ontario Energy Board
to allow Union Gas Limited to keep all the revenues from natural gas storage
that is sold to non-Union customers. The storage was built with the rates
paid by Union Gas customers and the outside revenue has always been shared
so that Union Gas customers get 75% of the money credited against their
rates.
Now, Union customers will get nothing and Enbridge Gas Distribution
customers will pay for part of their gas storage obtained from Union Gas
Limited at rates that are six times the actual cost. (All customers of
Union Gas Limited and Enbridge Gas Distribution pay for natural gas storage
in their rates).
Ontario three main customer groups are appealing to the Ontario cabinet to
prevent the decision from being implemented. The cost to Ontario consumers,
after a brief transition period, is expected to be greater than $100 million
per year and one billion dollars over a ten-year period.
“The Board decision will not create any new natural gas storage, and neither
will it conserve or create energy,² said Michael Janigan, General Counsel
of the Public Interest Advocacy Centre who represented VECC in the OEB
proceeding.
“It is simply making Ontario consumers give a billion dollar gift to Union
Gas Limited’s American owners, Duke Energy. This is money obtained by having
Canadian customers pay over the years for storage to be developed and then
taking away the profits when the surplus storage becomes successful.”
Janigan continued.
VECC and the other customer groups are requesting that the Ontario Cabinet
set aside the Board Decision and return it to the OEB for a rehearing.
Letter and Petition of VECC June 19, 2007
Download File: letter_and_petition_of_vecc_june_19_07.pdf [size: 0.07 mb]
Michael Janigan
Executive Director and General Counsel
Public Interest Advocacy Centre
(613) 562-4002 ext 26
No consumer protection from misleading airline ads in C-11: PIAC
Attention: News/Business editors
June 14, 2007
For Immediate Release
No consumer protection from misleading airline ads in C-11: PIAC
(OTTAWA)—The Public Interest Advocacy Centre (PIAC) slammed the House of
Commons passage of Bill C-11 today which contain Senate amendments that
effectively stripped the original bill, (passed by the House of Commons in
February of this year) of consumer protection provisions with respect to
misleading airline advertising and railway noise. The Liberals joined
Conservative members in approving the altered Bill. The Bloc and the NDP
opposed the Senate amendments.
“This represents an absolute sell out of the interests of travel agents and
airline customers across Canada,² said Michael Janigan, Executive Director
and General Counsel of PIAC.
PIAC, together with other consumer organizations such as Option
Consommateurs and representative organizations in the travel industry such
as the Travel Industry Council of Ontario (TICO) and the Association of
Canadian Travel Agents (ACTA) formed the Travel Protection Initiative (TPI)
over two years ago to work for better protection of passengers in the
airline industry.
In December 2006, in the House of Commons Transportation Committee, on the
motion of the
Liberal members, TPI was successful in obtaining a provision that would
have forced Transport Canada to prevent Airlines from advertising one low
fare then charging a much higher one after all the charges and fees are
added. Laws in Ontario and Quebec prevent travel agents from engaging in
such a practice, while statutes in other provinces have similar language
restricting such practice. The airlines, however are regulated by the
federal government and no such restriction applies.
In the Senate a furious lobby by Air Canada and Westjet to be allowed to
continue with the suspect advertising practices succeeded in winning the
support of the Liberal Senators. An amendment preventing the advertising
provisions from going into effect until; “consultation” takes place was
passed and sent back to the House. In the House, the Liberals led by Joe
Volpe, today deserted their own party’s legislative provisions and passed
the amended Bill.
“The Liberal flip-flop is an insult both to the members like David
McGuinty, who worked hard to put the original advertising protections in
place, and shows who really calls the shots when it comes to the public
interest in Canada” Janigan noted that it was unlikely that Transport
Canada would ever put in place airline advertising restrictions given the
airline opposition.
30
Michael Janigan
Executive Director and General Counsel
Public Interest Advocacy Centre
(613) 562-4002 ext 22
mjanigan@piac.ca
Media Release: CRTC Abandons Canadian Telephone Customers to Phone Companies’ Price Hikes
CRTC Abandons Canadian Telephone Customers to Phone Companies’ Price Hikes
Ottawa – Monday, April 30, 2007 – Canadians will be paying more for their local phone service beginning June 1, 2007 after the Canadian Radio-television and Telecommunications Commission (CRTC) took the lid off rates for local phone service in a decision today.
Michael Janigan, Executive Director and General Counsel with the Public Interest Advocacy Centre (PIAC), stated, “The CRTC has given Bell, TELUS and the other big phone companies the green light to raise your local telephone rates. We think the CRTC has abandoned Canadian telephone customers.”
Janigan noted that Industry Minister Maxime Bernier has promised that the new era of telecommunications deregulation would lower prices for Canadians: “This decision does the opposite.”
The CRTC faced intense phone company pressure to lift limits on local phone rates, after years of setting prices at levels Canadians can afford. “The CRTC will now permit phone companies to charge whatever they like for ‘optional services’ – but don’t be misled, this means useful services most Canadians take for granted, such as call display and voicemail.” Janigan noted.
While the decision places a cap of 5% or the rate of inflation per year, whichever is lower, for rural customers, prices likely will rise quickly to that level, added Janigan, “And don’t think they won’t go up by the maximum each year.” Urban customers theoretically have prices capped at current levels under the decision, however, companies now may “rate-deaverage” prices, meaning some urban customers may actually see significant price rises. In addition, if the company “bundles” its local phone service with other services like wireless, there is no limit on price.
The CRTC, in a surprise move, also allowed a doubling of payphone rates to 50 cents a call, up from 25 cents. John Lawford, PIAC legal counsel, noted “This is a 100% increase in rates that will hurt the most vulnerable of Canadians, who rely heavily on payphones to communicate. The CRTC did not indicate at the price cap hearings that it was seriously considering such a huge increase.”
PIAC is a non-profit organization that provides legal and research services on behalf of consumer interests, and, in particular, vulnerable consumer interests, concerning the provision of important public services.
For more information:
John Lawford
Counsel
Public Interest Advocacy Centre
ONE Nicholas Street, Suite 1204
Ottawa, Ontario
K1N 7B7
(613) 562-4002×25 (office)
(613) 447-8125 (mobile)
(613) 562-0007 (fax)
Consumer Groups Oppose Bernier Plan to Deregulate Local Telephone Service
Media Release
FOR IMMEDIATE RELEASE
Monday, January 15, 2007
Consumer Groups Oppose Bernier Plan to Deregulate Local Telephone Service
OTTAWA – Canadian consumer groups in a press conference given today condemned Industry Minister Maxime Bernier’s various manoeuvres seeking to hasten deregulation of local telephone service. The Minister’s proposals ignore the Canadian Radio-television and Telecommunications Commission’s (CRTC) roadmap to competition that took into account the largely dominant position of the established local phone companies and was aimed at permitting the creation of viable competition.
In the past year, Minister Bernier and the present government have variously: called on the CRTC to reverse a major decision on Voice over Internet Protocol (VoIP); proposed an executive ‘Direction’ to the CRTC to rely, notwithstanding contrary indications in telecommunications law, more fully on the ‘free market’ to achieve deregulation; introduced a Bill replacing the CRTCs’s proactive power to determine if large phone companies are anti-competitive with an after-the-fact oversight by the Competition Bureau; and, finally, proposed a Cabinet Order that would lead to premature deregulation of local telephone service. The Canadian Consumer Initiative denounced these Ministerial efforts to minimize the role of the CRTC, which is charged with consumer protection oversight in telecommunications, and to substitute political judgment for decisions and frameworks painstakingly arrived at by the CRTC after extensive quasi-judicial public hearings.
The Canadian Consumer Initiative (CCI) further denounced the role of the Minister in appearing to serve only the interests of the major telephone providers: Bell Canada, TELUS, Bell Aliant, Sasktel and MTS Allstream. Contrary to the Minister’s statements, the CCI contends that the proposed rapid deregulation of local telephone service, including removing pricing and quality of service constraints, will not promote competition and will not provide better service or prices to consumers.
“These actions defeat competition before it even starts and cement the position of the big telephone companies” said Charles Tanguay, Deputy Director and spokesman of Union des consommateurs. Tanguay added that “Captive subscribers will end up paying for the Conservatives’ telephone policies.”
The consumer groups denounced in particular the Minister’s recent draft Cabinet Order overturning a recent CRTC decision on how local telephone service markets would eventually be deregulated. Although the draft Order called for public consultation, it was unveiled only days before the holiday break and allowed only 30 days for comment – a strategy the CCI said was designed to discourage comment and which stands in stark contrast to the extensive examination of the issue by the CRTC. “The test in the draft Cabinet Order for the presence of adequate competition to allow near-total deregulation in local phone service has no relation to any consumer recommendations” said John Lawford, Counsel for CCI member the Public Interest Advocacy Centre, which appeared before the CRTC on the question. “I call it the ‘vain bubble’s shadow test’ of competition, for which consumers will have to pay.”
The CCI further demanded that the Minister respect the democratic processes of Parliament and permit the Industry Standing Committee to examine the Minister’s efforts at telephone deregulation. The Committee has called for public hearings on the draft direction to the CRTC.
The Canadian Consumer Initiative is a coalition made up of six major Canadian consumer organisations: the Alberta Council on Aging Services, Automobile Protection Association, Consumers Council of Canada, Option consommateurs, Public Interest Advocacy Centre and Union des consommateurs.
– 30 –
For more information:
Charles Tanguay
Directeur-adjoint – Responsable des communications
Union des consommateurs
6226, rue Saint-Hubert
Montréal (Québec)
H2S 2M2
Tél.: 514-521-6820 poste 257
Cell: 514-743-0419
Télécopieur: 514-521-0736
Tanguay@consommateur.qc.ca
John Lawford
Counsel
Public Interest Advocacy Centre
ONE Nicholas, Suite 1204
Ottawa, ON
K1N 7B7
Tele No. 613-562-4002×25
Fax No. 613-562-0007
jlawford@piac.ca
Please see also: PIAC Comments on Cabinet Reversal of Local Forbearance Decision [pdf file: 0.13mb]
Consumers Question Need for Minister’s Direction to CRTC
Press Release
FOR IMMEDIATE RELEASE
Monday, December 11, 2006
Consumers Question Need for Minister’s Direction to CRTC
Poll Shows Canadians Opposed to Price Deregulation
OTTAWA – Today’s announcement by the federal government Industry Minister Maxime Bernier opens the door to premature deregulation of local phone service say Canada’s major consumer groups.
Charles Tanguay of the Union des consommateurs called it “a potentially expensive Christmas present to Bell Canada, TELUS and the other big telephone companies that will be bought on credit. Next year, consumers may have to pay the bill.”
Bernier’s announcement allows Canada’s major telephone companies including Bell, Telus, Aliant, Sasktel and MTS, to escape regulation where some competition has appeared.
“We are afraid that this is not about competition, it’s about who will get towin the competition” said Michael Janigan, Executive Director of the Public Interest Advocacy Centre. Janigan also noted that public surveys show that Canadians are massively opposed to deregulation of telephone rates. A September survey by the Public Interest Advocacy Centre showed that over 70% of Canadians were opposed to telephone companies being allowed to set their own rates and a majority thought that having just one cable competitor was not enough competition.
Bill Huzar, President of the Consumers Council of Canada, noted that the Minister’s move to usurp the CRTC is an unwelcome politicizing of the process. “This sends the message that the big and the powerful can successfully lobby the government when they can’t get what they want from the independent tribunal,” said Mr. Huzar. “However, if we don’t get the services and prices consumers deserve in the future, it will be the fault of this Minister and the Conservative Government.”
The Consumer Groups said they will oppose the government’s efforts to lessen consumer protection for telephone users.
The Canadian Consumer Initiative is a coalition made up of six major Canadian consumer organisations: the Alberta Council on Aging Services, Automobile Protection Association, Consumers Council of Canada, Option consommateurs, Public Interest Advocacy Centre and L’Union des consommateurs.
– 30 –
The poll results are available at http://www.piac.ca/telecom/piac_pollara_survey_shows_phone_company_deregulation_plans_unpopular_with_canadians/
Please see also: PIAC Comments on CRTC Policy Direction [pdf file: 0.24mb]
For more information:
Michael Janigan
Executive Director and General Counsel
Public Interest Advocacy Centre
ONE Nicholas, Suite 1204
Ottawa, ON
K1N 7B7
Tele No. 613-562-4002×26
Fax No. 613-562-0007
mjanigan@piac.ca
Charles Tanguay
Directeur-adjoint – Responsable des communications
L’Union des consommateurs
6226, rue Saint-Hubert
Montréal (Québec)
H2S 2M2
Tél.: 514-521-6820 poste 257
Cell: 514-743-0419
Télécopieur: 514-521-0736
Tanguay@consommateur.qc.ca
Consumer Groups given leave to appeal CRTC $650 million Deferral Account Decision
For immediate release:
Attention: New/Business editors
Consumer Groups given leave to appeal CRTC $650 million Deferral Account Decision
OTTAWA—Consumer groups learned this week that the Federal Court of Appeal has granted them leave to appeal a February 16 CRTC Decision allowing major telephone companies to use money, raised by overcharging for local phone service, to build broadband capacity instead of rebating customers.
On March 20 consumer groups, composed of the National Anti-Poverty Organization (NAPO) and the Consumers Association of Canada (CAC), sought leave to appeal the CRTC Decision.
“We are pleased to have a chance to convince the court the money should be returned to consumers,” said Michael Janigan, General Counsel for the Public Interest Advocacy Centre (PIAC) which represents the Consumer groups in this proceeding.
The Consumer Groups will now file the appeal documents with the Federal Court of Appeal with a hearing and decision expected in 2007.
Michael Janigan
Executive Director and General Counsel
Public Interest Advocacy Centre
613 562-4002×26
PIAC: POLLARA Survey Shows Phone Company Deregulation Plans Unpopular with Canadians
September 7, 2006
For immediate release
Attn: News/Business editors
PIAC: POLLARA Survey Shows Phone Company Deregulation Plans Unpopular with Canadians
(OTTAWA)—Results of a Pollara survey released today by the Public Interest Advocacy Centre (PIAC) shows Canada’s big telephone companies have a long way to go in convincing Canadians that they should be able to set their own prices for local service. PIAC commissioned the study to assist in its representation of consumers before the Canadian Radio-television and Telecommunications Commission (CRTC) in proceedings now underway to determine how local phone service should be regulated. Michael Janigan, Executive Director and General Counsel with the Public Interest Advocacy Centre, stated: “The big telephone companies, like Bell and Telus have lately been extremely aggressive in lobbying the government to do away with consumer protection for local telephone service. The telephone companies say because there is already enough competition consumers don’t need the CRTC to protect them. Most Canadians do not agree”. The CRTC has also been under pressure from the new federal government to deregulate faster. The survey found that over 70 per cent of Canadians reject the idea that telephone companies should set their prices without CRTC approval. “A majority even disagreed with the idea that the cable company can provide enough competition to allow deregulation, an idea currently accepted by the CRTC,” Janigan noted. The POLLARA survey was fielded from August 29, 2006 to September with 1206 Canadians interviewed. The results should be considered accurate within (plus or minus) 2.9 percentage points 19 times out of 20.
Executive summary of the survey
Download File: pollara_telecom_survey_2006_unweighted.pdf [size: 0.05 mb]
Michael Janigan
Executive Director and General Counsel
Public Interest Advocacy Centre
(613) 562-4002×26
John Lawford
Counsel, PIAC
(613) 562-4002×25
Ric Hobbs
Associate Vice President
POLLARA
(613) 237-4117
