Increasing Consumer Worries and Woes – CCTS Annual Report

OTTAWA – The Annual Report 2018-19 of the Commission for Complaints for Telecom-television Services (CCTS) released today shows an increase of 35% in consumer complaints for all communications services compared to last year.
Wireless problems continue to lead the pack by service type, rising 53% over last years’ complaints and constituting more than 40% of all communications complaints.  Leading issues in wireless are billing and contract disputes, despite the protections of the Wireless Code; a Canadian Radio-television and Telecommunications Commission (CRTC) “Report on Misleading or Aggressive Communications Retail Sales Practices”; and high retail pricing compared to other comparable countries, the Public Interest Advocacy Centre (PIAC) noted.
“The Wireless industry is being reviewed by the CRTC right now. It is clear that billing, contracts and service standards are not meeting the reasonable expectations of Canadians,” said John Lawford, Executive Director and General Counsel of PIAC. “Canadians are increasingly frustrated by high costs of wireless service and the hassle of continued problems and so they are starting to complain.”
Service delivery issues were up by 61.6% from last year, and were noted to be most commonly raised by internet customers. Specifically, loss or degradation of service, such as slow speeds and outages were their most common concerns. The CCTS reports that in some cases, customers are experiencing internet speeds that they believe are unsatisfactory given the maximum speeds offered by their specific internet plan. PIAC’s recent research report on the CRTC’s recently created Internet Code confirmed consumer concerns regarding slow internet speed and misleading advertising but warns that the Internet Code, in our view remains a weak shield for consumers.
 
For more information, please contact:
John Lawford
Executive Director and General Counsel
Public Interest Advocacy Centre
Tel: 613-562-4002 ext. 25
jlawford@piac.ca
 
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Stronger Regulatory Regime needed to address Consumer Issues regarding Retail Internet Access Services

New PIAC Report: Unraveling Webs of Uncertainty: What an Internet Code could mean for Canadian Consumers
OTTAWA –Canadians continue to face several issues with their home Internet access services and recent regulatory efforts to address them still fall short, a new Report released today by the Public Interest Advocacy Centre (PIAC) outlines. Prominent consumer internet service issues include billing; home Internet speed, often claimed to be either slow, or subject to throttling and poor quality of service (often a mismatch between the advertised Internet speed and what is actually delivered); lack of contract clarity; and challenges in installing and cancelling Internet access services.
The Report also reviewed how a potential “Internet Code” could be effective in addressing several of the above consumer issues regarding retail Internet access. While the Report was being drafted, the Canadian Radio-television and Telecommunications Commission (CRTC) released its “Internet Code” decision. The Report analyzes the CRTC’s Internet Code and finds that it does not adequately address several consumer issues, including speed claims and in one case, installation fees, actually permits additional unwarranted charges to be added to bills by Internet Service Providers (ISPs).
“The CRTC missed a golden opportunity to fix Internet service by rushing out the Internet Code with minimal safeguards for consumers,” said John Lawford, Executive Director and General Counsel at PIAC.
PIAC’s Report reviewed international practices and policies that revealed several consumer protection regulations that could have been useful and applied in Canada; in particular, those addressing broadband speed claims and billing issues. “These international protections should be considered in detail to better understand their relevance for Canada’s specific framework,” noted Tahira Dawood, Policy and Research Analyst at PIAC.
The Report’s recommendations are divided in two stages for ease of implementation. For the first stage, it suggests:

• The Commission should consider including issues regarding broadband speed and misleading advertising in a potential Internet Code.
• Under the quality of service aspects of the new broadband speed regulatory regime, all ISPs should be required to provide a minimum guaranteed baseline download and upload speed, and consumers should have a right to exit a contract without penalty, if these baseline speeds are not consistently achievable at the promised level, within 30 days.
• Additionally, the Competition Bureau and the CRTC should work together on an inquiry on broadband speed and quality advertising.
• The CRTC should, within the next two years, launch a public proceeding to review the level and nature of competition in the retail Internet access services market to parallel the ongoing “Wireless Review”.
• The Commission should take action to implement the suggestions it made to improve consumer protection in its Report on Misleading or Aggressive Communications Retail Sales Practices and to prioritize those applicable to retail Internet access services, including suitability standards for the sale of residential retail Internet access services.

For the second stage:

• The Commission should consider, in the long-term, having a single, mandatory and universal telecommunications code that applies to all telecommunications services and all broadcasting distribution services, rather than a patchwork of consumer protection.
• The CRTC should launch a public proceeding to frame this Code within 3 years, with a view to having the Telecommunications Code in place within 5 years.

The Report’s drafting was mostly completed by July 2019 with the addendum to the report written after the CRTC’s decision on the Internet Code came out.
To view the full report in English, click here.
To access the condensed report in English, click here and to view the report in French, click here.
To view the addendum to the report in English, click here.
To view the addendum to the report in French, click here.
The Public Interest Advocacy Centre (PIAC) has received funding from Innovation, Science and Economic Development Canada’s Contributions Program for Non-profit Consumer and Voluntary Organizations. The views expressed in this report are not necessarily those of Innovation, Science and Economic Development Canada or of the Government of Canada.
For more information please contact:
John Lawford
Executive Director and General Counsel
Public Interest Advocacy Centre (PIAC)
Tel: 613-562-4002 x 25
jlawford@piac.ca
 
Tahira Dawood
Policy and Research Analyst
Public Interest Advocacy Centre (PIAC)
Tel: 613-562-4002 x 23
tdawood@piac.ca
 

UPDATE: PIAC to Hold its Annual Dinner November 28th 2019

Le CDIP souhaite la bienvenue aux nouveaux membres du conseil d’administration

Ajout d’expertise en matière de télécommunications, de radiodiffusion et de recours collectifs
OTTAWA – Le Centre pour la défense de l’intérêt public (CDIP) a annoncé aujourd’hui l’élection récente de quatre nouveaux administrateurs à son conseil, tous experts en télécommunications, en radiodiffusion ou en recours collectifs :

• Konrad von Finckenstein est avocat et consultant à Ottawa. Auparavant, il a été président du Conseil de la radiodiffusion et des télécommunications canadiennes (CRTC), juge à la Cour fédérale du Canada et commissaire de la concurrence au Bureau de la concurrence du Canada. Par ailleurs, il a occupé des postes supérieurs au gouvernement du Canada dans des domaines liés au commerce international, aux télécommunications, à la concurrence et au commerce électronique. M^evon Finckenstein a été élu président du conseil d’administration du CDIP.
• Suzanne Lamarre est avocate et ingénieure au sein du cabinet Therrien Couture ainsi qu’ancienne commissaire du CRTC. M^eLamarre œuvre dans les domaines du droit des télécommunications, des radiocommunications et de la radiodiffusion à titre de conseillère stratégique en affaires réglementaires et gouvernementales aux échelons national et international.
• Monica Auer est avocate et directrice générale du Forum for Research and Policy in Communications (FRPC), organisation apolitique axée sur le système de communications du Canada. Auparavant, elle a travaillé au CRTC et à la Société Radio-Canada (SRC). M^eAuer a été élue vice-présidente du CDIP.
• Jonathan Schachter est avocat à Toronto au sein du cabinet Sotos LLP, dont les domaines de pratique comprennent les recours collectifs, les litiges en matière de protection des consommateurs, la concurrence et la fixation des prix, les litiges en matière de protection des renseignements personnels, les litiges en matière de responsabilité professionnelle et les litiges et l’arbitrage en matière de marques de commerce et de propriété intellectuelle.

« Le travail considérable que fait le CDIP au nom des consommateurs devant le CRTC exige une orientation et des connaissances approfondies », a déclaré John Lawford, directeur et avocat général du CDIP. « Ainsi, nous sommes ravis d’ajouter à notre conseil d’administration des personnes qui possèdent une expérience inégalée pour orienter nos activités de promotion des communications, ainsi qu’un expert en recours collectifs de consommateurs, car ce secteur est de plus en plus litigieux », a-t-il ajouté.
Le CDIP est un organisme de bienfaisance enregistré sans but lucratif constitué en vertu d’une loi fédérale qui défend les intérêts des consommateurs, et plus particulièrement ceux des consommateurs vulnérables, relativement à la prestation d’importants services publics. Il est connu pour représenter des groupes de consommateurs, des personnes à faible revenu et des personnes âgées devant le CRTC, où il plaide en faveur de meilleurs services, d’un plus grand choix et de la protection des consommateurs clients de services Internet, sans fil, de téléphonie et de radiodiffusion.
Pour en savoir plus, veuillez communiquer avec :
John Lawford
Directeur et avocat général
Centre pour la défense de l’intérêt public (CDIP)
613-562-4002, poste 25
jlawford@piac.ca
www.piac.ca
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PIAC Welcomes New Board Members

Adds Expertise in Telecommunications, Broadcasting and Class Actions
OTTAWA – The Public Interest Advocacy Centre (PIAC), today announced the recent election of four new directors to its Board, all experts in either telecommunications, broadcasting or class actions:

• Konrad von Finckenstein is a lawyer and consultant based in Ottawa. He was previously Chair of the Canadian Radio-television and Telecommunications Commission (CRTC), an Honourable Justice of the Federal Court of Canada and the Commissioner of Competition at the Competition Bureau of Canada. In addition, he has held senior posts in the Government of Canada in positions related to international trade, telecommunications, competition and electronic commerce. Mr. von Finckenstein has been elected as PIAC’s Chair of the Board.
• Suzanne Lamarre is a lawyer and engineer with the firm of Therrien, Couture and is a former Commissioner of the CRTC. Maitre Lamarre works in the areas of telecommunications, radiocommunications and broadcasting law as a strategic advisor on regulatory and governmental matters at both the national and international level.
• Monica Auer is a lawyer and the Executive Director of Canada’s Forum for Research & Policy in Communications (FRPC), a non-partisan organization focused on Canada’s communications system. She previously worked at the CRTC and the Canadian Broadcasting Corporation (CBC). Ms. Auer has been elected as PIAC’s Vice-Chair.
• Jonathan Schachter is a Toronto based lawyer with Sotos LLP, with his practice areas including class actions, consumer protection litigation, competition and price fixing, privacy litigation, professional liability litigation, and trademarks and intellectual property litigation and arbitration.

“PIAC’s extensive work on behalf of consumers before the CRTC requires the utmost guidance and insight,” said John Lawford, Executive Director and General Counsel of PIAC.  “We are therefore thrilled to add to our Board persons with unparalleled experience to guide our communications advocacy, as well as an expert in consumer class actions as this sector becomes more litigious,” he added.
PIAC is a federally incorporated not-for-profit and registered charity that advocates for consumer interests, and in particular vulnerable consumer interests, in the provision of important public services.  PIAC is known for its representation of consumer, low-income and seniors groups before the CRTC, arguing for better services, more choice and consumer protection for customers of Internet, wireless, telephone and broadcasting services.
For more information, please contact:
John Lawford
Executive Director and General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002 ×25
jlawford@piac.ca
www.piac.ca
– 30 –

Consumers Left Unprotected by CRTC's Internet Code

OTTAWA – The Public Interest Advocacy Centre (PIAC) warns home Internet consumers in Canada that the Canadian Radio-television and Telecommunications Commission (CRTC) yesterday released its “Internet Code” but that the Code has many traps for unwary consumers and likely will not assist customers who have had Internet service price increases, overage charges or early cancellation fees.
“The CRTC’s Internet Code is a trap for unwary consumers because they may think it protects them but on issues that matter, like the ability of Internet Service Providers to change prices mid-contract or to charge you for cancelling service, it blesses those abuses” stated John Lawford, Executive Director and General Counsel of PIAC. The Internet Code will come into effect on January 31, 2020. However, it is “largely a glorified notice to consumers to beware of Internet Service Providers,” Lawford added.
The Public Interest Advocacy Centre (PIAC) boycotted the CRTC’s proceeding to establish a mandatory code for Internet services after the denial of its request for more time to develop a public interest position, and consult the public on this matter. Several other consumer groups supported PIAC’s position, and did not participate.
PIAC is concerned with the Internet Code because we believe consumers will be confused by its difference with the much more consumer-protective Wireless Code. PIAC finds no compelling reason as to why one standard would apply to wireless services and another, much lower standard applies to retail internet access service.
Consumers should be aware that the CRTC’s Internet Code:

• Allows ISPs to change the price of Internet service during the duration of the contract, because discounts or promotions are permitted to be part of the “price”; (this cannot be done under the Wireless Code);
• Provides no cap on data overage charges. Instead ISPs are only required to notify consumers when their data usage reaches certain usage thresholds (the Wireless Code places caps on data overages);
• Allows for early cancellation fees which, depending on the contract, could be significant (the Wireless Code limits cancellation fees to the remaining monthly cellphone payments).
• Applies only to “large internet service providers” (the Wireless Code applies to all wireless service providers);
• Does not address misleading internet speed advertising, even though many consumers continue to raise concerns about unachievable promised or advertised internet speeds.

For more information, please contact:
John Lawford
Executive Director and General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002 ×25
jlawford@piac.ca
www.piac.ca

Steps Required to Reduce Switching Barriers and Enhance Consumer Choice in Canadian Communications Services Market

New PIAC Report: Consumer Choice in telecommunications and broadcasting
OTTAWA – Canadians do not switch communications providers despite their dissatisfaction with pricing and service, says a new research report released by the Public Interest Advocacy Centre (PIAC). The report finds significant barriers to switching in the Canadian retail communications services market, with limited regulatory action taken so far to promote consumer participation in these markets. The retail communications services markets studied include: home Internet access services, home (wired) telephone, mobile phone (including telephone and data services), and paid television services (broadcast distribution, excluding “over-the-top” services).
”Consumers are reluctant to try out competitive communications services, despite feeling they can and should,” said John Lawford, Executive Director and General Counsel at PIAC. “There are clearly behavioural barriers as well as market barriers to exercising choice in these markets,” he added.
The report finds two set of factors limiting consumer choice in the Canadian retail communications services market:

• First, there are considerable contractual switching costs – the most important being lengthy contracts with early termination fees for some services; charges for required equipment; and pricing structures such as “bundled” packages of several telecommunications and broadcasting services that inhibit choice of any particular service in isolation.
• Second, human behavioural cognitive biases inhibit consumers’ decision-making in complex communications markets. These “heuristics and biases” inhibit them from disturbing their status quo by switching, or cause them to make poor choices if they do switch. These behavioral factors exist independently of the structural factors, but can interact with and indeed amplify the effect of contractual switching costs. Further, the communications companies appear to be well-aware of these consumer “behavioural economics” biases and to design their offerings with these in mind, to increase profit, but to the detriment of consumer welfare.

The report notes that the Canadian Radio-television and Telecommunications Commission (CRTC) has, over the past decade, tentatively addressed some switching costs barriers for some services (notably wireless telecommunications services) in regulatory codes of conduct. However, the report finds that regulatory and political action promoting choice and switching in all four communications services has been limited and uncoordinated.
The report therefore makes the following recommendations for enhancing consumer choice in the communication services market:

• The CRTC should place an eventual ban on multi-year contract lock-ins for all communications services to enable customers would to be eventually on month-to-month contracts.
• Communications service providers eventually not be permitted to link the sale of service plans to the provision of devices in contracts (3 year phase-out of device linking).
• The CRTC should establish technical standards for enabling devices such as set-top boxes and related equipment so they are interoperable on all providers’ networks. This could also help in the long run to create a vibrant third-party market for the sale of such equipment and possibly lower service prices.
• The CRTC should ensure that consumers have easy and widespread access to an online rate comparison and calculating mechanism, providing up-to-date information on the features and costs of all communication services in Canada, including bundles that can be easily understood. These services should be accredited by the CRTC to fairly function and produce reliable results.

To view the full report in English, click link.
To view the full report in French, click link.
The Public Interest Advocacy Centre has received funding from Innovation, Science and Economic Development Canada’s Contributions Program for Non-profit Consumer and Voluntary Organizations. The views expressed in this report are not necessarily those of Innovation, Science and Economic Development Canada or of the Government of Canada.
For more information please contact:
John Lawford
Executive Director and General Counsel
Public Interest Advocacy Centre (PIAC)
Tel: 613-562-4002 x 25
jlawford@piac.ca

The CRTC is listening, get your mobile wireless problems heard!

OTTAWA, April 12, 2019 – Have you faced any issues with your mobile wireless service – cellphones – be it your bills being too high, data overage fees, high roaming charges, poor quality of service, or any other problems? The Canadian Radio-television and Telecommunications Commission (CRTC) is reviewing the mobile wireless services. With this public consultation, the CRTC will be specifically looking at:

• the state of competition in the retail wireless service market;
• regulation of wholesale mobile wireless service and the provision and competition implications of the Mobile Virtual Network Operator (MVNO) access; and
• the future of mobile wireless services in Canada- 5G technology and other developments.

Here’s your chance to share your experiences and ideas with the CRTC; enabling them to better understand your wireless concerns, and accordingly, plan and take the required measures. PIAC encourages you all to participate, and share your views regarding the available choices within the retail wireless industry, issues you have faced with mobile wireless services, and any measures needed for improvement.
It is important that you comment in detail, and be as specific as possible about your issues and ideas. You may choose to add your particular experience– what happened when you complained about an issue, or brought it to the attention of your wireless provider? What challenges did you face in dealing with this? How would you like these issues to be addressed? Details like these will allow for a more clear and precise understanding of the point being made.
We also encourage you to share this message and the link to the CRTC’s public consultation page with your contacts. Remember, more public input means a stronger and a more prominent consumer voice, with a better chance of seeing positive changes for consumers.
Do not wait, participate now and be a part of this process. Please note that your comments must be received by the CRTC by 5 p.m. Vancouver time (8 p.m. Ottawa time) on May 15, 2019.
We at PIAC continue to advocate for your rights, and plan to be your voice during this proceeding. Watch our website for our submissions to the CRTC throughout the process.
Helpful Links:

• CRTC Notice of Consultation: The CRTC’s Telecom Notice of Consultation CRTC 2019 – 57
• Direct link for commenting on the CRTC’s Consultation: Link for submitting your comments
• NEW: Coalition for Cheaper Wireless Services (CCWS), which includes PIAC, ACORN, NPF and CARP: initial comments dated 15 May 2019.
• Contact the CRTC: https://crtc.gc.ca/eng/contact/
• To contact PIAC: https://www.piac.ca/contact-us/

PIAC Supports New Policy Direction to CRTC; expects lower costs, more choice in wireless and Internet

OTTAWA – The Public Interest Advocacy Centre (PIAC) today expressed its support in a comment filed in answer to a consultation in the Canada Gazette for the Government’s proposed new “Policy Direction” to the Canadian Radio-television and Telecommunications Commission (CRTC), intended to protect consumers, encourage affordability, increase competition and encourage innovation in telecommunications services.
“PIAC supports the Government’s proposed New Policy Direction to the CRTC to re-focus Canadian telecommunications regulation on consumers, cost and choice,” said John Lawford, Executive Director and General Counsel at PIAC.  “We expect it will encourage concrete changes like more wireless service options, more Internet service options at higher speeds and all of it at prices Canadians can better afford.”
PIAC also recommended abolishing a previous Policy Direction from 2006 that favoured “market forces” in CRTC decision-making, stating its “time has passed and that it should, in reasonably short order, be revoked.”
For more information, please contact:
John Lawford
Executive Director and General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002 ×25
jlawford@piac.ca
www.piac.ca

Communications Companies Playing Hardball with Consumers – CCTS Mid-Year Report

OTTAWA – The annual “Mid-Year Report” of the Commission for Complaints for Telecom-television Services (CCTS) (2018-19) released today shows an increase of 44% in consumer complaints compared to the same period last year – showing that there are continuing problems with the communications sector, said the Public Interest Advocacy Centre (PIAC) today.  Worryingly, more consumers are being denied clear rights in the Wireless Code and other consumer protections and are facing increasing willingness of companies to cut off their service.
“We see a hardening of attitudes towards consumer complaints in these numbers,” said John Lawford, PIAC Executive Director and General Counsel, referring to an increase of complaints about lack of notice of wireless disconnections and an increase in complaints about matters such as mid-month cancellations. “Consumers have clear rights that are being flouted – so the only remedy is for consumers to bring forward even more complaints until the companies change their attitude,” he added.
PIAC notes that the Mid-Year Report revealed that the new most frequent complaint issue was “Incorrect charge”. The “incorrect charge” category covers a wide range of issues but may include Canadians’ continued disputes with companies about “overage” fees on texting and voice calls (usually long distance). PIAC also notes that there was an increase in complaints about mid-month cancellations, referred to as “30 day cancellation policy/Charges billed after cancellation”. Under CRTC rules, consumers can cancel any communications service mid-month and may not be charged for service after cancellation.
“The companies continue as well to mislead consumers, usually during sales,” explained Lawford (the second highest complaint category was: “non-disclosure of terms/misleading terms”). “It is unacceptable for so many of the complaints to continue to relate to sales-related matters – so we hope the CRTC follows up its Sales Report with action,” he added, referring to the CRTC’s recent “Report on Misleading or Aggressive Communications Retail Sales Practices.”
The CCTS Mid-Year Report 2018-19 also noted continuing problems with Canadians’ experience with the quality of communications services, in particular their Internet services, as well as disputes arising from wireless data charges.
For more information, please contact:
John Lawford
Executive Director and General Counsel
Public Interest Advocacy Centre
Tel: 613-562-4002 ext. 25
Cell: 613-447-8125
jlawford@piac.ca