OTTAWA – On Monday, the first day of the newest session of Parliament, Minister of Industry David Emerson introduced legislation which will, if passed, grant the CRTC direct fining authority when it comes to Telecommunications Act violations.
Direct fining authority would be granted through the implementation of an administrative monetary penalty (AMP) scheme. Under the scheme, the CRTC would have the ability to impose AMPs in the following ranges: for companies, maximums of $10 million for a first offence and $15 million for a subsequent offence; for individuals, maximums of $25 000 for a first offence and $50 000 for a subsequent offence.
"The CRTC’s new ability to act quickly to impose fines will enable it to better regulate the industry by responding quickly and effectively to violations of the Act and its decisions," said Minister Emerson in a statement. "This will lead to smarter regulation, stronger competition and more choice for consumers."
Currently, the only recourse against companies or individuals who have violated the Act (such as via telemarketing scams) or CRTC decisions is through a criminal proceeding in the courts. AMPs will give the CRTC the necessary tools to act quickly to address violations directly, without going to court. AMPs are also meant to serve as a deterrent for any company or individual that would consider operating in a manner that contradicts telecommunications rules and regulations, reads the Industry Canada press release.
Access to the courts will continue to be an important tool and will remain available as a final recourse to the CRTC to use at its discretion. With this in mind, the proposed amendments also call for streamlining the existing summary conviction provisions in the Telecommunications Act and increasing the associated fines.
Finally, the amendments propose giving the Commissioner of Competition improved access to commercially confidential information filed with the CRTC in respect of telecommunications proceedings. The Competition Bureau has a mandate to intervene in CRTC telecommunications proceedings, and the amendments would allow the Bureau to provide more informed advice to the CRTC as it works to foster competition in the telecommunications marketplace.
"These amendments will strengthen the CRTC’s ability to carry out its mandate by ensuring it can regulate in a timely, effective and flexible way that fosters competition in the telecommunications industry," said Minister Emerson. "Facilitating reliable, affordable telecommunications services contributes economic and social benefits to all Canadians across the country."
