PIAC Marks World Consumer Rights Day

OTTAWA, March 15, 2013 – World Consumer Rights Day is an opportunity to mark the improvements made on behalf of Canadian consumers over the past year and serves as a reminder of the many challenges they still face, according to the Public Interest Advocacy Centre (PIAC).
“In the past year, we have seen the initiation of all-in pricing for airline advertising, a proceeding to establish a mandatory code of conduct for wireless service providers by the Canadian Radio-television and Telecommunications Commission (CRTC), and the Competition Bureau’s action demanding that major Canadian wireless companies pay administrative monetary penalties for misleading advertising for premium text messaging abuses, to the benefit of Canadian consumers”, notes Jonathan Bishop, PIAC’s Research Analyst. In addition, PIAC has published reports exploring the consumer interest relating to international data roaming, advertised internet speeds, and future wireless spectrum auctions.
However, many challenges remain in the ongoing campaign to improve the rights of Canadian consumers. The timely and efficient implementation of the anti-spam regulations, the evolving issue of allowing multiple consumer banking arbitration services, lack of progress in the implementation of the report of Task Force for the Payments System Review, and the improving the relationship between consumers and their wireless providers are just a few of current challenges facing the Canadian consumer movement.
“In the year to follow, PIAC intends to continue shining a light on issues that concern Canadians from coast to coast to coast”, says Bishop. PIAC encourages Canadians to become more engaged in public consultation processes over the next year when those opportunities present themselves. “A strong consumer movement is required to educate decision makers and to provide counter-arguments to positions by industry, if those positions are seen to be detrimental to consumers. Consumers can assist themselves by their greater participation in consultation processes”, concluded Bishop.
World Consumer Rights Day (WCRD) is an annual occasion for celebration and solidarity within the international consumer movement organized by Consumers International. WCRD was first observed on March 15, 1983, and has since become an important occasion for mobilizing citizen action. Consumers International is the world federation of consumer groups serving as an independent and authoritative global voice for consumers.
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 please contact:
Jonathan Bishop
Research & Parliamentary Affairs Analyst
Public Interest Advocacy Centre (PIAC)
(613) 562-4002 ext. 23
jbishop@piac.ca
www.piac.ca
 

The public demands the CRTC stop Bell’s takeover of Astral Media

MEDIA ADVISORY

September 12, 2012
For immediate release
http://StopTheTakeover.ca
The public demands the CRTC stop Bell’s takeover
OpenMedia.ca and Public Interest Advocacy Centre Available for Comment about Bell/Astral Hearing
WHO:
Steve Anderson, Executive Director, OpenMedia.ca
Lindsey Pinto, Communications Manager, OpenMedia.ca
Janet Lo, Legal Counsel, Public Interest Advocacy Centre (PIAC)
WHAT:
The Canadian Radio-television and Telecommunications Commission (CRTC) is examining Bell Canada’s $3.4 billion takeover of Astral Media at hearings in Montreal the week.
The Public Interest Advocacy Centre, an Ottawa-based consumer group is scheduled to appear before the Commission on Wednesday, September 12. PIAC is a member of the Stop the Takeover Coalition, which opposes the acquisition based on the principles at http://openmedia.ca/takeover/principles.
WHY:
“This deal will give Bell more market power because they will control a remarkable share of television services,” says Public Interest Advocacy Centre counsel Janet Lo, “If the deal goes through, consumers will be offered even less flexibility in packaging and choices to pick and pay only for the television services they want to watch, and consumers will pay higher prices to access broadcasting services.”
OpenMedia.ca, a grassroots organization that safeguards the possibilities of the open and affordable Internet, has further concerns about big telecom companies that own both content and the methods of distributing it.
Steve Anderson, Executive Director at OpenMedia.ca, says: “If you watch TV, use the Internet, or own a cell phone, you’ll feel the effects of Bell’s takeover. This deal threatens the choice and flexibility, fair prices, and dynamic innovation that Canadians deserve, and it will ultimately act as dead weight on our digital economy. It’s no wonder that experts from the public interest community are up in arms about the Bell/Astral takeover, and that citizens are continuing to make their voices heard via the petition at StopTheTakeover.ca. If the CRTC is really working for Canadians we all know they will simply stop this merger”
WHEN / WHERE:
The CRTC hearing on Bell’s takeover of Astral is taking place from Monday, September 10, 2012, through Friday, September 14 in Montreal, PQ.
Janet Lo of PIAC and Sophy Lambert-Racine of Union des consommateurs are scheduled to appear before the Commission on Wednesday, September 12. Spokespeople from OpenMedia or PIAC will be available to comment at any time.
BACKGROUND:
OpenMedia.ca is a grassroots organization that safeguards the possibilities of the open and affordable Internet. The group works towards informed and participatory digital policy.
The Public Interest Advocacy Centre (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.
OpenMedia.ca and PIAC are both members of the Stop the Takeover Coalition. The Coalition comprises public interest groups and industry players who are coming together, based on a set of common principles, to oppose the proposed takeover of Astral Media by Bell and to promote public engagement through the Stop the Takeover campaign.
The CRTC hearing has been called to examine the merits of Bell’s application for transfer of effective control for Astral Media’s licences. The CRTC hearing will canvass a number of issues, such as media concentration in radio and television services, vertical integration, and diversity of voices.
As CRTC Chairman Jean-Pierre Blais remarked in his opening statement, “I would remind everyone that it is the responsibility of a seller or their representative to prove that a transaction is in the public interest.” The Chairman also noted that the Commission would consider “the impact the transaction could have on subscriber rates and other relevant markets.”
Studies show that Bell’s takeover of Astral would lead to the former controlling an unprecedented amount of Canada’s content which would cement its dominance across the significant sectors of the media industry. Given this, the Stop the Takeover Coalition holds that the proposed Bell power grab will mean “fewer media and telecom choices, higher prices, and less opportunity for free speech” in Canada.
For more information, please contact:
Lindsey Pinto – 778.238.7710 – lindsey@openmedia.ca
Jim Goss – 416.534.4008 – pres@jgoss.com
Details can also be found at http://StopTheTakeover.ca.

Diverse Coalition forms in response to Bell’s proposed acquisition of Astral Media

Canadians to CRTC: Bell Takeover of Astral is Bad for Canada

August 28, 2012 – Bell’s proposed takeover of Astral Media is bad for Canada. That’s the message being sent by the new, broad-based coalition of groups known as the Stop the Takeover Coalition.
The Coalition consists of a diverse mix of organizations—public interest groups, consumer groups, and cultural industry stakeholders—that have joined forces, based on a set of principles, to draw public attention to the risks of Bell’s expansion. The coalition is encouraging Canadians to join the campaign by sending a messaging to decision makers at http://StopTheTakeover.ca.
Some of the groups leading the coalition include grassroots citizen-engagment group OpenMedia.ca (the group behind the largest online campaign in Canadian history) and the Public Interest Advocacy Centre (PIAC). They are joined by the Canadian Internet Policy and Public Interest Clinic (CIPPIC), Canada Without Poverty and the CWP Advocacy Network, the Canadian Media Guild (which represents over 6,000 media workers, including those from CBC, Reuters, the Canadian Press, and Shaw Media), the Consumers’ Association of Canada, the Council of Canadians (Canada’s largest citizens’ group), the Council of Senior Citizens’ Organizations of British Columbia (COSCO), and Québec-based consumer groups Option consommateurs and Union des consommateurs.
OpenMedia.ca Executive Director Steve Anderson explains the Coalition’s aim: “The CRTC now has no excuse. It’s abundantly clear that Bell’s proposed monopolistic takeover is bad for Canada, and Canadians know it.”
In March, Bell announced that it would seek to acquire Astral Media, and thus control a share of the broadcasting market in Canada that would be more than twice that of its largest competitor. This would create an unprecedented level of media concentration in this country, and lower Canada’s status from having one of the least competitive media systems in the industrialized world, to having the least competitive one (details below).
This could spell trouble for independent businesses seeking to compete, but more importantly, it could be the beginning of the end of real choice for Canadians.
Owning more media content creates an incentive for Bell to maximize profits by pushing content that it owns or restricting access to other content it can’t monetize – and it gives Bell control over the media content citizens consume, and delivery of daily communications.
“If Bell is allowed to control Astral’s content, Bell will to force higher prices and less choice on their customers and their competitor’s customers,“ says Janet Lo, PIAC Counsel. “If this takeover is allowed, prices and content will be offered only on Bell’s terms, and suppressing competition harms consumers.”
“With that type of size and concentration, consumers will face higher prices, less choices, less diversity of voices, and less quality,” said Robert Cazelais, Executive Director of Option consommateurs.
Anderson adds. “Canadians learning more and getting engaged are the strongest chance we have at pushing back against Bell’s takeover. We strongly encourage Canadians to make their voices heard at StopTheTakeover.ca.”

About the Stop the Takeover Coalition

The Stop the Takeover Coalition comprises public interest groups and industry players who are coming together, based on a set of common principles, to oppose the proposed takeover of Astral Media by Bell and to promote public engagement through the Stop the Takeover campaign. Learn more about the Coalition and its members at http://openmedia.ca/takeover/coalition.
PIAC is representing consumers in the process. On Aug. 9 the Public Interest Advocacy Centre filed these comments with the CRTC on Bell’s proposed acquisition of Astral Media.

Contact

Lindsey Pinto
Communications Manager, OpenMedia.ca
1-778-238-7710
lindsey@openmedia.ca
Janet Lo
Legal Counsel, Public Interest Advocacy Centre
1-613-562-4002×24
jlo@piac.ca

Statistics and Background

Four large companies—Bell, Shaw, Rogers, and QMI—control 86 per cent of cable and satellite distribution, 70 per cent of wireless revenues, and 54 per cent of Internet Service Provider revenues.
A report from Boston-based Analysis Group reports that 81.4 per cent of the value of Canada’s TV distribution (cable and satellite) market is controlled by companies that also create content, such as broadcasters and production companies.
Canada currently has the second-highest level of cross-media ownership and vertical integration among 32 countries studied by researchers in the International Media Concentration Research Project (Columbia University). It will be the highest amongst these countries if the CRTC does not pull the plug on the Bell/Astral deal.
While concentration is slowly declining elsewhere, in Canada it is rising sharply; the Bell/Astral deal will compound the trend.
Astral products currently represent Bell’s largest single content cost. Astral owns 22 television services and 84 radio stations, many of which currently compete with Bell’s 30 specialty channels and 35 radio stations. This includes Super Écran, The Movie Network and HBO Canada, and top specialty brands such as Canal Vie, Canal D, VRAK TV, MusiquePlus, Teletoon, Family and Disney Junior.
The Bell/Astral deal is valued at $3.38-billion.

Consumers should be wary of risks in virtual worlds

The Public Interest Advocacy Centre (PIAC) today released a report entitled “A Virtual Fortune: Consumer Protection for Banking and Consumer Fraud in Virtual Worlds”. The report studies virtual worlds, which are sometimes described as “massively multiplayer online role-playing games” (MMPORGs) that provide an immersive virtual experience for many players that many players consider to be “real”. Many virtual worlds have developed virtual economies based on a virtual currency that may be exchanged for real-world currency. Players will play the role of consumer and entrepreneur within virtual worlds.
As virtual economies grow, there have been instances of fraud in these virtual worlds. PIAC’s report studies examples of economic fraud conducted in virtual worlds such as Second Life, Entropia Universe, EVE Online, and World of Warcraft. For example, there have been cases of bank runs, securities fraud, and theft of virtual property. These situations have resulted in a financial loss to consumers in virtual worlds. Notably, virtual world operators in most cases stated that these fraudulent schemes are “part of the game” while denying responsibility and liability and refusing to compensate players who have lost money to fraud in virtual worlds. Efforts to set up in-world justice systems have not been successful.
“Where a consumer falls victim to fraudulent activity within a virtual world, they are not likely to be successful in seeking redress or compensation for their losses,” said Janet Lo, Legal Counsel at the Public Interest Advocacy Centre and author of the report. “Virtual world consumers must be aware of potential risks to their in-world assets and property, such as in-world fraudulent schemes or unilateral actions by virtual world operators dealing with user accounts.”
Given that individuals view their virtual world avatar as an extension of themselves, the report explored whether real-world rights should extend to the avatar and whether traditional notions of property rights and consumer protection should apply to virtual avatars participating in virtual economies. The report noted the use of End-User License Agreements (EULA) or Terms of Service by virtual world operators to limit their liability and stipulate certain mandatory forms of dispute resolution. The enforceability of these terms in real world courts have been questioned but real world case law has not yet clarified the legal status and rights of virtual world users.
The report notes that real-world regulators around the world continue to examine virtual world economies and contemplate whether real-world regulation should be applied to financial transactions conducted in-world. For example, securities and payment regulations could be applied with a view to providing greater consumer protection to virtual world users.
“As virtual world experiences blend into social networking websites and other areas of commerce, regulators will need to consider how consumer protection will operate and whether the application of real-world regulations will be sufficient to protect consumers,” said Lo.
 

The Executive Summary of Virtual Worlds
Download File: Executive Summary English[size: 0.02 mb]

Sommaire Français
Download File:Virtual Worlds Sommaire Francais[size: 0.03 mb]

The complete Virtual Worlds report is available here
Download File: Virtual Worlds FINAL for website[size: 1.36 mb]

 
PIAC received funding from Industry Canada’s Contributions Program for Non-Profit Consumer and Voluntary Organizations. The views expressed in thereport are not necessarily those of Industry Canada or the Government of Canada.
For more information, please contact:
Janet Lo
Legal Counsel
Public Interest Advocacy Centre
ONE Nichloas Street, Suite 1204
Ottawa, ON K1N 7B7
(613) 562-4002×24
(613) 562- 0007 (Fax)

Consumers need more comprehensive protection for returns of online purchases

The Public Interest Advocacy Centre (PIAC) today released a report entitled “Point of No Return: Consumer Experiences Returning Online Purchases”. The report studies the importance of the return policy for consumers purchasing goods online in light of the demonstrated growing popularity of online shopping. The 108-page report examines consumers’ experiences with returns for online purchases and their ability to return the product.
“Canadian consumers need better protections for shopping online and a clear, unequivocal right to return products purchased online,” said Janet Lo, PIAC legal counsel and author of the report. “Business policies and practices for return policies for online purchases vary greatly and Canadian consumers do not always have the ability to return products purchased online.”
The report notes that the European Union recently passed a new Consumer Rights Directive that gives consumers the right to return online purchases and requires retailers to reimburse shipping costs incurred by the consumer. The EU Directive also requires retailers to provide clear information to consumers about their right to return the product and costs associated with the return.
PIAC’s study surveyed Canadian consumers regarding online purchases and returns, with 89% of respondents stating that the right to return was an important consideration when deciding whether or not to purchase a product online. PIAC also purchased and returned products from 15 North American retailers to test the online return process. Retailers had varying return periods and used inconsistent ways to calculate the period for return. As well, consumers are expected to bear the cost of returning a product purchased online by paying for shipping to return the product and having original shipping and handling fees deducted from their refund.
“Consumers purchasing items online do not have the benefit of inspecting the products in person, so the right of return is an important consideration,” said Lo. “The cost to return products purchased online often represents a high percentage of the total purchase price, which likely dissuades consumers to purchasing more items online.”
PIAC called for more comprehensive legal protection for the right to return products purchased online. PIAC’s report recommends several consumer-friendly business practices that should be implemented by online businesses for online returns. PIAC also provides a tips sheet for consumers who are returning online purchases.

The report, “Point of No Return: Consumer Experiences Returning Online Purchases”, is available here:

Download File: online_returns_final_website.pdf [size: 0.75 mb]

Point de non-retour : L’expérience des consommateurs concernant le retour d’achats effectués en ligne Rapport rédigé par le Centre pour la défense de l’intérêt public Le Centre pour la défense de l’interêt public a reçu du financement en vertu du Programme de contributions pour les organisations sans but lucratif de consommateurs et de bénévoles d’Industrie Canada. Les opinions exprimées dans ce rapport ne sont pas nécessairement celles d’Industrie Canada ou du gouvernement du Canada.
Une résumé est disponible ici:

Download File: online_returns_french_exec_summary.pdf [size: 0.05 mb]

PIAC’s tip sheet for consumers who are returning online purchases is available here;

Download File: consumer_tips_sheet_for_online_returns.pdf [size: 0.06 mb]

PIAC received funding from Industry Canada’s Contributions Program for Non-Profit Consumer and Voluntary Organizations. The views expressed in the report are not necessarily those of Industry Canada or the Government of Canada.
For more information, please contact the Public Interest Advocacy Centre.
(613) 562-4002
 
 

PIAC Applauds Appointment of Consumer Services Minister in Ontario

The Public Interest Advocacy Centre (PIAC) hailed the continuance of the stand-alone ministry of consumer services by Premier Dalton McGuinty today (Oct. 20, 2011).
Margarett Best, MPP for Scarborough Guildwood is the new minister.
“We are pleased that Premier McGuinty’s government realizes the importance of having a seat at the cabinet table for a minister that is entrusted with promoting the well being of consumers and healthy markets, said Michael Janigan, Executive Director and General Counsel of PIAC. Janigan noted that consumer transactions account for over 50% of the economic activity in the province.
Janigan also noted that he hoped the leadership shown by the Ontario government on this issue should influence other governments.” It has been shown time and time again that combining consumer services with business portfolios and the like doesn’t work, and diminishes the quality of consumer protection, he stated.

PIAC says Vertical Integration Protections Must Extend to Consumers

The Public Interest Advocacy Centre (PIAC), which participated in the proceedings giving rise to today’s CRTC Decision Regulatory Policy 2011- 601, expressed its satisfaction with the determination by the Commission that vertical integration (VI) presents potential problems that may lead to abuse of market power with serious effects upon Canadian creators, programmers and consumers.
However , PIAC also noted while the decision ensured that needed protections were afforded to industry players including non-exclusivity of programming designed for television, and a code of conduct for commercial arrangements, protections for individual consumers are incomplete.
“With the reluctance to accept a modified basic cable/or satellite package that would reduce subscriber commitment, the CRTC has kicked the can down the road when it comes to consumer choice and value for service” said Michael Janigan, executive director and general counsel of PIAC.
He noted that the CRTC plans to revisit the issue next year when VI players must report on their efforts to increase consumer choice. PIAC had strongly supported a “skinny basic” model noting that cable and satellite basic TV service had almost doubled in price since the CRTC had stopped regulating the basic rate.
Canadian Radio-television and Telecommunications Commission Regulatory Policy 2011- 601

PIAC Calls for Changes to Competition Bureau Merger Guidelines

In a brief filed, August 31, 2011, in response to a consultation on draft Merger Enforcement Guidelines (MEGs), PIAC has called for changes to the way the Bureau assesses the net effect of proposed mergers on the market. Now, mergers that might may cause prices to increase may be allowed if it can be shown that the merged parties will become more efficient, and those efficiency gains will be greater than the loss to competition shown, for example, by the product price increase.
The problem is that the efficiency gains might not flow to consumers that are paying the higher prices. In the United States, and Europe only those efficiency gains that increase consumer welfare are considered for the purpose of offsetting loss of competition problems such as price increases. PIAC suggests that Canada fall in line with these jurisdictions, not only to protect consumers, but also to prevent mergers involving foreign investment when the efficiency gains flowing to the merged entity may not be going to benefit the domestic economy. The full brief can be found here.
 

PIAC general counsel to address the sad state of Canadian consumer protection: March 2, Carleton University

Abandoned in the market: The sad state of Canadian consumer protection

Wednesday, March 2, 2011 2:30 p.m.
518 Southam Hall, Carleton University
Michael Janigan
Executive Director and General Counsel
Public Interest Advocacy Centre (PIAC)

PIAC general counsel to address the sad state of Canadian consumer protection: March 2, Carleton University
Download File: janigan_020311.pdf [size: 0.04 mb]

Starting in the last quarter of the twentieth century, governments began to rely on markets themselves to set the rules to protect consumers and the public interest, rather than government regulatory authority. At the same time, traditional defenders of the role of government in society began to concentrate on preserving public programs in such areas as health, education and the environment, and less on private sector behaviour in the marketplace. This lecture will examine how this occurred, the current results and potential remedies for indifference to the consumer economic stake.
As PIAC’s General Counsel, Michael Janigan has represented and advised consumer organizations and interests in regulated industries across North America. Based in Ottawa, his work has addressed key issues concerning the design of performance based rate making, competitive market design and the unbundling of utility services in telecommunications, energy and broadcasting industries. Under his direction, PIAC has advanced consumer protection concerns in competition law, privacy, electronic commerce. PIAC has also advocated rules for better treatment of consumers in the airline and financial services industry. His work has included participation in governmental initiatives to develop multilateral trade policy in areas such as competition and consumer protection. Mr. Janigan‘s practice has involved administrative litigation conducted in oral and written proceedings, research studies supporting the consumer perspective and appearances before parliamentary committees and government policy makers seeking law reform.
In 2009, Michael Janigan received a Community Leaders in Justice Fellowship from the Law Foundation of Ontario. The fellowship will enabled his study, teaching and other work with the Department of Law, Carleton University in Ottawa. Mr. Janigan has also taught in the Osgoode Hall LLM Professional Development Program.

PIAC calls for a halt to Bell’s rebate hustle

An Ottawa-based consumer group wants to hold Bell Canada to account over its plan to convert rebates into new two-year contracts.
“We are writing with regard the marketing campaign recently launched by Bell Canada and Bell Aliant to dispose of part of the funds in their deferral accounts. This campaign offends consumers, violates the Commission’s directives, and should be stopped,” Michael Janigan, executive director of the Public Interest Advocacy Centre wrote to the Canadian Radio-television and Telecommunications Commission today.
On Aug. 31 the CRTC ordered the Bell companies to rebate $250 million to the consumers who had paid into the “deferral accounts”. About two weeks ago Bell sent this group a letter offering to credit the money against new services.
“The Bell companies’ attempt to use consumers’ own money to bind them to long term service commitments is inappropriate and must not be sanctioned,” Janigan writes.
 

Download the Nov. 29, 2010 PIAC letter to the CRTC here: 
deferral_account_rebates_crtc_letter_nov_26.pdf [size: 0.08 mb]