By Ahmad Hathout
The House committee on Industry is calling on the CRTC to launch a “full review of the matter of price certainty and the issue of surprise fees increasing during fixed term contracts” and to take regulatory action on it, according to a report that was delivered to the House floor last week.
The report also urges Industry Minister Francois Philippe-Champagne to “use his available powers in the interim to correct these unfair practices,” expresses “disappointment in Rogers Communications Inc. for not proactively disclosing the true costs of their products and services to consumers,” and “notes the detrimental impact of the lack of competition in the telecommunication sector is having on Canadian consumers.”
When asked for comment, the CRTC told Cartt that the issue of price changes mid-contract will be addressed in its upcoming proceedings, which will look at the issue of notifying customers on time-limited discounts and removing barriers to switching plans as they related to early cancellation fees. Rogers and Bell did not respond to a request for comment in time for publication.
The House report, which does not require a government response, was expected to emerge from a committee that voted on a tri-partisan basis earlier this month to send a message to the House about its disappointment that Rogers would increase the rental price of its cable boxes by $7 per month despite claims customers were told that the price for their services was fixed, according to reporting by CBC/Radio-Canada.
The CBC story set off a brief study on the matter, which included invites to Rogers CEO Tony Staffieri and Bell head Mirko Bibic, who was replaced by the telco’s lawyer to tell the committee that the company hasn’t increased prices on its cable boxes in five years.
The focus of the committee’s ire was Staffieri, who defended the price increase and attributed it to increased investments the company makes to improve software and functionality on a device it considers a premium product. He told committee members that the majority of customers are not impacted by the price increase; that those who were were notified about the change; and that they have alternatives to the box if they don’t want it anymore.
But those answers did not satiate MPs already furious that Staffieri didn’t show up the week before, which he attributed to a last-minute personal matter.
By the end of the two-hour hearing, Calgary MP Michelle Rempel Garner used some of her question time to start the tri-partisan motion that would result in the report in question. She also got assurances from Staffieri that the company would produce to the committee a copy of the contract, the time on hold, and the recording between the Rogers sales rep and Cathy Cooper, the lead complainant in the CBC investigation, who had six TV boxes.
The point is to gauge whether it would be an inconvenience for a customer to get in touch with a Rogers customer service – the experience of which the company has bragged about for years, especially after its acquisition of Shaw – and to understand what exactly customers are being told about the services and what to expect.
And when MPs floated the possibility of introducing additional consumer protection laws in this sector – beyond the CRTC’s codes for internet and wireless – Staffieri and Bell lawyer Mark Graham said those would be unnecessary because they claim there is sufficient competition in the market.
Last month, the CRTC launched three consultations to strengthen consumer protections through amendments to those codes. Proposed changes include more transparent communications from the service providers, the elimination of certain fees associated with switching, and self-service options for customers to easily cancel or modify their contracts.
Screenshot of Industry committee chair
