OTTAWA-GATINEAU – Telecommunications service providers cannot charge for a service that is not, and cannot be, provided following a cancellation, the CRTC stressed Thursday.
The Commission made the comments after issuing two decisions relating to its prohibition of 30-day cancellation policies, a move designed to make it easier for consumers to switch service providers. In the first decision, the Commission denied a request by Telus to direct Shaw Communications to cease requiring the payment of liquidated damages when small business customers cancel retail local voice or Internet services before service installation work has begun.
Noting that Telus’ focus on a single service provider makes the scope of its application too narrow, the CRTC said that liquidated damages should be reasonable and commensurate with the actual loss incurred, and that clear contract terms are essential to empowering consumers to make informed decisions about their services.
In the second decision, the Commission turned down a request by Quebecor Media on behalf of Videotron to direct Bell Canada and its subsidiaries to give individual and small business customers pro-rated refunds when those customers cancel retail wireless services, retail local voice services (including VoIP services) or Internet services, for which some or all of the monthly service fees are billed in advance.
“All service providers must provide refunds for retail wireless, local voice (including VoIP), and Internet services following cancellation of such services when some or all of the monthly service fees are billed in advance”, reads the decision. “The refunds must be pro-rated, based on the number of days left in the last monthly billing cycle after cancellation.”
In a statement accompanying the two decisions, the CRTC reminded small business customers to review their contract terms should they wish to cancel a telephone or Internet service before installation work has begun. Any fees charged by the service provider as a result should be reasonable and proportional to the costs it has incurred.
“Our goal is to ensure that our policies are clear and benefit all Canadians, so that they are not charged unwarranted fees after having cancelled a service”, said CRTC chairman and CEO Jean-Pierre Blais, in the statement. “The CRTC will continue to monitor the marketplace as it evolves.”
