PIAC Calls for New Payments Framework and Regulator

New PIAC report, “Innovative Oversight: strengthening the Canadian payments system”

OTTAWA, August 24, 2015– In a new report released today, the Public Interest Advocacy Centre (PIAC) called for a payment system framework designed and implemented to oversee all retail payment-related activities, all types of payment instruments and all payments system providers in Canada. PIAC also recommended a dedicated body be established to monitor and regulate the Canadian payments ecosystem. The report, entitled “Innovative Oversight: strengthening the Canadian payments system,” was submitted to the federal Department of Finance as part of a consultation on the oversight of national payment systems.

“The Canadian payments ecosystem needs a comprehensive regulatory framework in order to enhance consumer trust and accessibility, as well as to promote competition and innovation in the payments market,” stated John Lawford, PIAC’s Executive Director and General Counsel. “It is possible to have an innovative payments market while ensuring that stakeholders are both well protected and actively involved in the process,” noted Lawford.

PIAC’s report outlined a series of risks currently facing the Canadian payments system, and analyzed the suitability of existing bodies to undertake payments regulation. The report concluded a regulator be established with a mandate over all payment functions, instruments and providers. As well, the report recommended an oversight framework that requires the regulator to collaborate on an ongoing basis with stakeholder communities.

“PIAC makes these recommendations in order to ensure a strong and efficient framework for the payments ecosystem that Canada sorely needs. Without significant enhancement, Canada’s payment ecosystem will remain in the slow lane, while regimes in other jurisdictions continue to pass us,” concluded Lawford.

To see the full report, please consult the following link:
Strengthening Canadian Payment System PIAC Submission
You may also see PIAC’s commentary, entitled The Oversight of Prominent Payment Systems: Are we Keeping Time? This submission was PIAC’s response to a Bank of Canada consultation paper and request for comment:
OversightProminentFinal.
 
For more information please contact:
John Lawford
Executive Director & General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002×25
lawford@piac.ca
www.piac.ca
 

Agreement on Internal Trade Appears to Prevent, Not Eliminate, Trade Barriers

New PIAC report, “Dispute Resolution in the Agreement on Internal Trade: A Consumer Perspective”
OTTAWA, July 31, 2015– The Agreement on Internal Trade (AIT) dispute resolution mechanism has a closed consultation process, a lack of third-party oversight and uncertain applicability, according to a new Public Interest Advocacy Centre (PIAC) report.
PIAC’s new report, entitled, “Dispute Resolution in the Agreement on Internal Trade: A Consumer Perspective,” concludes that a series of structural, jurisdictional and procedural amendments are required in order for the Agreement to meet its objectives – and serve the ultimate beneficiaries, Canadian consumers – in a more efficient manner.
“The AIT’s dispute resolution process appears to focus on preventing new barriers to trade, not removing existing ones,” noted Jonathan Bishop, PIAC’s Research Analyst and co-author of the report. “We found evidence the current process lacks transparency and third party oversight, making us question its effectiveness to remove unjustified and harmful provincial trade barriers,” said Bishop. As a result, the report suggests expanding the Agreement’s capacity to lower trade barriers by resolving disputes outside of currently defined categories.
Some of the report’s other recommendations include:

• Establish a permanent, limited, rotating roster appellate panel.
• Develop a limited appeal mechanism.
• Introduce facilitators upon request during the consultation stage.
• Remove the interpretive priority of vertical sectoral chapters over horizontal ones, and permit panels to evaluate the consistency of a measure with the Party’s commitments based on the merits of a case.
• Remove disputant’s ability to block a panel’s consultation with experts and other third parties and formalize a mechanism that facilitates submissions to a panel by public interest groups.

 
To see the full report, please consult the following link:
Dispute Resolution in Agreement on Internal Trade
To view the report in French, please consult the following link:
Dispute Resolution in Agreement on Internal Trade FR
 
For more information please contact:
Jonathan Bishop
Research & Parliamentary Analyst
Public Interest Advocacy Centre (PIAC)
(613) 562-4002×23
jbishop@piac.ca
www.piac.ca
 
John Lawford
Executive Director & General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002×25
lawford@piac.ca
www.piac.ca
 

Debt Collection Industry

New PIAC report, “All Along the Watch Tower: A Review of the Canadian Consumer Debt Collection Industry”
OTTAWA, March 30, 2015–Questionable practices by collection agencies, flawed incentive models imposed by creditors and the need for enhanced communication methods by government agencies all may contribute to a frustrating experience for Canadian consumers dealing with the debt collection industry. The new Public Interest Advocacy Centre (PIAC) report, entitled, “All Along the Watch Tower: A Review of the Canadian Consumer Debt Collection Industry,” examined the conduct of debt collection agencies in Canada and the impact on consumers. The report recommends a series of measures to provide enhanced protection for consumers, greater guidance for debt collection agencies, and suggested areas where government agencies can increase transparency and streamline debt collection regulations.
“An enhanced effort is required from all stakeholders to improve Canada’s debt collection industry, and changes to consumer protection provisions can act as a catalyst,” noted Jonathan Bishop, PIAC’s Research Analyst and author of the report. “New rules are required to level the playing field between consumers with debt and the debt collection industry in Canada,” concluded Bishop.
The report recommends the distribution of a notice from government consumer protection agencies explaining to consumers their rights when they are contacted by a debt collection agency. Also the report suggests calls between debt collectors and consumers be recorded, and the relevant consumer affairs agency review random samples of these recordings for the protection of all parties and to ensure industry best practices. Debt collection industry regulators should introduce annual transparency reports related to debt collection complaints. These transparency reports could publicly outline how many complaints were brought forward against each individual collection agency, as well as against each original creditor. PIAC’s other recommendations included the introduction of universal standards concerning the provision of written notice of a debt before debt collection calls can commence, the ending of collection calls once the identity of a non-debtor has been confirmed, as well as the right for consumers to stop collection calls and request subsequent communication by other means.
“As Canadian consumers become more indebted, it is reasonable to expect a growing number will be contacted by a debt collection agency. To ensure future contact by collection agencies is less intimidating for consumers, we encourage all stakeholders to review the suggestions and evidence we have gathered,” noted Bishop.
To see the full report, please consult the following link:
All Along the WatchTower EN
To view the report in French, please consult the following link:
All Along the WatchTower FR (2)
PIAC received funding from Industry Canada’s Contributions Program for Non-Profit Consumer and Voluntary Organizations to prepare the report. The views expressed in the report are not necessarily those of Industry Canada or the Government of Canada.
For more information please contact:
Jonathan Bishop
Research & Parliamentary Analyst
Public Interest Advocacy Centre (PIAC)
(613) 562-4002×23
jbishop@piac.ca
www.piac.ca
John Lawford
Executive Director & General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002×25
lawford@piac.ca
www.piac.ca

Canada Needs Definition of Affordable Communications

New PIAC report: “No Consumer Left Behind: A Canadian Affordability Framework for Communications Services in a Digital Age”
OTTAWA, March 23, 2015 – Canadians need a clear definition of affordability of their communications services if they wish to realize the full potential of these services to connect them to Canadian society, concludes a new report released today by the Public Interest Advocacy Centre (PIAC). In the report “No Consumer Left Behind: A Canadian Affordability Framework for Communications Services in a Digital Age”, PIAC surveys existing legal and policy explorations of how much Canadians can afford to pay for their communications services (wireline and wireless telephone, broadband Internet and broadcasting), and finds that Canada needs a comprehensive statement of affordability in order to move towards universal communications for Canadians.
“Canada has been silent on what affordable communications services means for too long,” noted John Lawford, PIAC’s Executive Director and General Counsel and co-author of the report. “We need to start the conversation – and to do that we need to know what affordability really means to low-income consumers.”
As part of the report, PIAC surveyed affordability regulations and policies in other countries but focused on understanding the Canadian consumer’s perspective on the affordability of communications services through:

1. Focus groups held with members of ACORN Canada, a national advocacy organization of low and moderate income families;
2. Interviews with local organizations who worked with low-income clients on a day-to-day basis; and
3. Aggregate data of low-income consumers gathered from Credit Canada Debt Solutions.

“Lower income Canadians told us they need communications to fully participate in society, now more than ever,” said Alysia Lau, PIAC Legal Counsel and co-author of the report. “They are trying to cope, but they also need more control over what they spend, and more choice of services.”
The report recommends that Canada establish an explicit, enforceable universal service obligation for telecommunications and broadcasting services, and require communications services to be affordable to all Canadians.
The report finds that “affordability” must be carefully defined for this purpose. It must be relative – that is, consumers should not have to sacrifice or restrict purchasing other essential services such as heating, clothing or food in order to afford monthly communications services.  Affordability should respect Canadians’ needs for control over their costs and choice of communications services. In addition, the report recommended that the Canadian Radio-television and Telecommunications Commission (CRTC) undertake quantitative research on affordability on a yearly basis and make the findings and data public.
The full report in English:
PIAC No Consumer Left Behind – Final Report English
The full report in French:
PIAC No Consumer Left Behind – Final Report French
PIAC received funding from Industry Canada’s Contributions Program for Non-Profit Consumer and Voluntary Organizations to prepare the report. The views expressed in the report are not necessarily those of Industry Canada or the Government of Canada.
For more information please contact:
John Lawford
Executive Director & General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002 ×25
Mobile: (613) 447-8125
lawford@piac.ca
www.piac.ca
 
Alysia Lau
Legal Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002 ×38
alau@piac.ca
www.piac.ca

– 30 –

 

New PIAC report, “How to Pay the Piper: A Primer on Additional Charges to Consumers in Canada for Paper Billing”

OTTAWA, August 27, 2014 – In a new report the Public Interest Advocacy Centre (PIAC) estimates Canadians are paying between $495 and $734 million annually in fees for monthly bills and statements in paper formats to the banking and communications services industries (phone, T.V., home internet and wireless).
The report, entitled, “How to Pay the Piper: A Primer on Additional Charges to Consumers in Canada for Paper Billing,” examined the conduct of service providers in Canada who have begun to charge consumers for a paper bill and the impact of these practices on consumers. The report recommended the elimination of fees for paper billing, something the Government of Canada has committed twice in the past year.
“A majority of consumers have indicated their disapproval of being charged extra for a paper bill. Most Canadians believe supplying a paper bill in the mail without having to pay an extra fee is part of the company’s cost of doing business,” noted Jonathan Bishop, PIAC’s Research Analyst and author of the report.
As part of the report, PIAC collected the views of consumers through the analysis of a telephone survey that found the following:
•74% of Canadians surveyed disapproved of the practice of charging people extra for a paper bill or statement.
•71% approved of offering consumers a discount to those who opt for electronic billing.
•83% of respondents believe receiving a paper bill in the mail without having to pay an extra fee is part of the company’s cost of doing business.
The report recommended that all Canadian service providers provide an incentive to consumers to get them to switch to electronic billing. The report estimated Canadian consumers without internet access have spent between $77 and $102 million on paper bill fees annually. “That these funds are being collected from those who can least afford it is deeply concerning,” says Bishop.
“We applaud those corporations who have chosen to not apply a fee for paper bills, or provide incentives to have consumers switch to electronic billing. We wish for all consumers to receive their bills and statements in the method of their choice, without being penalized for their socio-economic status,” stated John Lawford, the Executive Director and General Counsel for PIAC.
The report also recommended provincial governments investigate and record consumer complaints regarding the application of fees to receive paper bills and amend consumer protection laws to eliminate the growth of paper bill fees going forward.
To see the full report, please consult the following link: How to Pay the Piper
To see the report in French, please consult the following link: Comment payer les violons
PIAC received funding from Industry Canada’s Contributions Program for Non-Profit Consumer and Voluntary Organizations to prepare the report. The views expressed in the report are not necessarily those of Industry Canada or the Government of Canada.
For more information please contact:
Jonathan Bishop
Research & Parliamentary Analyst
Public Interest Advocacy Centre (PIAC)
(613) 562-4002×23
jbishop@piac.ca
www.piac.ca
John Lawford
Executive Director & General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002×25
Mobile (613) 447-8125
lawford@piac.ca
www.piac.ca

Consumers Need to be Wary of International Online Transactions

OTTAWA, April 2, 2014–Canadian online consumers have no clear recourse when encountering a problem involving international retailers, according to a report released today by the Public Interest Advocacy Centre (PIAC) entitled, “Shopping for Consumer Protection: Current Jurisdictional Issues.” The report recommends governmental bodies consider providing recommended venues for online dispute resolution (ODR) to provide predictability in the marketplace for both consumers and vendors.
The report examined challenges facing consumers when experiencing online shopping disputes with retailers based outside of Canada. “The murky world of trans-border consumer disputes remains a haunted house for consumers, with methods to legally resolve disputes remaining unclear,” noted John Lawford, PIAC’s Executive Director and General Counsel. Lawford concluded, “Currently consumers purchasing goods from jurisdictions outside of Canada have a limited number of avenues available to them should a dispute arise with an online retailer.”
While the report revealed that 72% of 1,001 Canadian consumers surveyed have never experienced a problem purchasing online, it found when Canadians did encounter a problem, ¾ of the time the retailer was foreign-based. In addition, 78% of Canadian consumers surveyed were not confident they could resolve a dispute with a foreign-based online retailer, versus 10% if the retailer is based in their home province. Other survey results found in the report include:
• 27% of Canadian consumers surveyed buy online at least once a month
• 74% of Canadian consumers surveyed look at products online at least once a month
• While 62% of Canadian consumers surveyed always look to ensure the retailer’s payment system is secure, only 20% always review the retailer’s compliant handling process.
• 45% of Canadian consumers surveyed do not know which laws should apply if they encounter a problem with an online retailer located outside of Canada.
The report recommends consumer protection agencies and organizations continue making consumers aware of potential hazards when purchasing from online retailers outside of Canada. Current government awareness programs dealing with online privacy should appear alongside this information to provide consumers with greater clarity before a consumer commits to an ecommerce purchase. Other recommendations include the provision of consumer assistance resources by provincial consumer protection agencies and consumer complaint bodies at all levels of government.
The report also calls for online retailers to use complaint, feedback and dispute information to update and enhance their own operations. “Clearly setting out policies and practices to address dispute resolution is essential to improving the online shopping experience for both consumers and retailers,” said Jonathan Bishop, PIAC’s Research Analyst.

To see the report, please consult the following link:

Download File: shopping_for_consumer_protection.pdf   [size: 0.32 mb]

To view the report in French, please consult the following link:

Download File: shopping_for_consumer_protection_fr.pdf [size: 0.38 mb]

The report, including the appendix, can be viewed at this link:

Download File: shopping_for_consumer_protection_w_appendix.pdf [size: 0.8 mb]

PIAC received funding from Industry Canada’s Contributions Program for Non-Profit Consumer and Voluntary Organizations to prepare the report. The views expressed in the report are not necessarily those of Industry Canada or the Government of Canada.
For more information please contact:
John Lawford
Executive Director & General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002×25
Mobile (613)447-8125
lawford@piac.ca
www.piac.ca
Jonathan Bishop
Research & Parliamentary Analyst
Public Interest Advocacy Centre (PIAC)
(613) 562-4002×23
jbishop@piac.ca
www.piac.ca

Canadian Consumers Need More Protection Dealing with “Free” Services

OTTAWA, March 26, 2014–Canadian consumers have little protection should they encounter a problem or become involved in a dispute with online free service providers, according to a report released today by the Public Interest Advocacy Centre (PIAC) entitled, No Such Thing as a Free Lunch: Consumer Contracts and “Free” Services. The report points to the growing the disparity of interests between companies offering free services and consumers when companies seek methods to monetize their “free” businesses, ultimately consumers stand to lose.
“Current legislative and regulatory regimes fail to provide sufficient protection to Canadians using free online services,” noted John Lawford, PIAC’s Executive Director & General Counsel. Lawford continued, “Consumers shouldn’t have to gamble with their privacy each time they wish to send an email, connect with family or use an online storage solution.”
The report recommends an update to current provincial consumer protection laws so they apply to those accessing free services online that monetize user-provided value. The report also cited the need for amendments to the Personal Information Protection and Electronic Documents Act (PIPEDA) allowing the Office of the Privacy Commissioner the ability to investigate and enforce elements of Canada’s privacy regime through fines or mandatory orders. “As the potential for conflict between consumer and corporate interests grows, it is time to provide the Office of the Privacy Commissioner of Canada the necessary tools to protect Canadians using online services,” noted Jonathan Bishop, PIAC’s Research Analyst.
The report also called for a statutory breach of confidence tort allowing a user to make a claim against web companies that unnecessarily use private information gathered on their website. In addition, the report recommends creation of methods for assessing market power from a competition law perspective that can be applied to the online free services sector.
To see the full report, please consult the following link:

New PIAC report, “Deal of the Day?: Consumer Protection in Online Group Buying Deals”

OTTAWA, March 19, 2014 – Canadian online deal site consumers expect a comprehensive refund policy, easily understood conditions and a complaint resolution process to assist them if they encounter redemption issues, according to a report released today by the Public Interest Advocacy Centre (PIAC) entitled, “Deal of the Day?: Consumer Protection in Online Group Buying Deals.”
The report recommended Canadian deal site industry leaders collaborate to create an industry body to address issues of commonality when required. Consumers and deal site operators would benefit from the creation of universal industry standards regarding:
• the redemption of deal site vouchers for their face value once they have expired;
• the period of validity for deal site offers. PIAC suggests this period be for one year after date of purchase; and,
• the refund of a deal site offer.
“Confidence in the Canadian deal site industry would be enhanced if consumers were assured of a hassle-free refund, face-value redemption if their deal expires and a year to redeem their deal site offers,” contended Jonathan Bishop, PIAC’s Research Analyst and author of the report. While deal site providers have responded to consumer concerns in recent years, Canadians continue to place a limited amount of trust in online deals. “Canadian consumers are once-bitten, twice-shy when it comes to deal site offers. They rarely spend more than $40 on a deal site offer, due to previous redemption experiences,” noted John Lawford, PIAC’s Executive Director and General Counsel.
The report recommended that Canadian deal sites consider collecting and displaying cumulative consumer feedback ratings for the retailer and deal site involved in each deal site offer. “Consumers, retailers and deal site providers would each benefit from an innovative customer feedback model,” claimed Bishop. The report also called for Canadian deal site providers to continue undertaking due diligence when negotiating a deal site offer with a retailer, limiting the number of deal vouchers offered under any deal, as well as the number of deal offers issued by a single retailer, when necessary.
To see the full report, please consult the following link:

Download File: deal_of_the_day.pdf [size: 0.59 mb]

To view the report in French, please consult the following link:

Download File: deal_of_the_day_fr.pdf [size: 0.68 mb]

 
PIAC received funding from Industry Canada’s Contributions Program for Non-Profit Consumer and Voluntary Organizations to prepare the report. The views expressed in the report are not necessarily those of Industry Canada or the Government of Canada.
For more information please contact:
Jonathan Bishop
Research & Parliamentary Analyst
Public Interest Advocacy Centre (PIAC)
(613) 562-4002×23
jbishop@piac.ca
www.piac.ca
John Lawford
Executive Director & General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002×25
Mobile (613)447-8125
lawford@piac.ca
www.piac.ca

Links to PIAC Reports on Transport

Transport Reports

• The Life and Times of Airline Travel in Canada
• The Restructured Airline Market in Canada

 

Telecom – Links

Note: PIAC is in no way responsible for the content of the websites or activities of the listed organizations.
Long Distance rate comparisons: http://www.telecomparisons.com
Submissions to the CRTC – PIAC submissions to the CRTC can be found on the CRTC’s website under the relevant proceeding. Please go to the CRTC website athttp://www.crtc.gc.ca