OTTAWA — In a decision issued Wednesday, the CRTC has denied an application by the Public Interest Advocacy Centre (PIAC) and the National Pensioners Federation (NPF) in which they argued Rogers Communications’ proposed balance limit policy for prepaid wireless services violated the Wireless Code.
PIAC-NPF’s Part 1 application, filed with the Commission in February 2018, was seeking clarification and enforcement of rules in the Wireless Code regarding prepaid wireless balances. In December 2017, Rogers began notifying prepaid customers who had unused balances and consumed minimal usage on a monthly basis that Rogers intended to apply a maximum amount of carry-over balance of $150 as of December 31, 2018.
Rule J.1. of the Wireless Code sets out the rules for WSPs’ prepaid service account balances as follows:
(i) Upon the expiry of the commitment period of a prepaid customer, a service provider must allow at least seven calendar days for the customer to top up their account, at no charge, in order to maintain an active account and retain any existing balance.
(ii) This rule applies whether the commitment period of the prepaid customer is established via an activated prepaid card or otherwise, by contributing amounts to a prepaid account balance.
In their application, PIAC-NPF argued that Rogers’ proposed balance limit policy violated the Wireless Code. They asked the Commission to clarify rule J.1. so it would require wireless service providers (WSPs) to retain prepaid customers’ existing balances indefinitely for as long as the customer continues to top up their account, and then to enforce the rule by ordering Rogers to retain any existing balance in a customer’s prepaid account as long as the customer tops up their account within seven days of the expiry of the customer’s commitment period.
In its decision on Wednesday, the Commission writes that Rogers’ changes to its balance limit policy are not prohibited, and further, rule J.1. does not require WSPs to carry over prepaid balances indefinitely. Therefore, the Commission denied the PIAC-NPF application.
During the proceeding, based on information provided by Rogers, the Commission found that Rogers provided prepaid customers with sufficient options to use their excess balances. As a result of the company’s efforts, more than half of affected Rogers customers found ways to use their prepaid balances, according to the information filed during the proceeding. The Commission notes in its decision that Rogers provided prepaid customers more than 12 months’ notice of the implementation of its balance limit policy. In addition, Rogers worked with prepaid customers via the Commission for Complaints for Telecom-television Services (CCTS) to resolve related complaints to their customers’ satisfaction, the Commission adds in its decision.
The Commission notes there are still some prepaid Rogers customers who have not found ways to use their excess balances or whom Rogers has been unable to contact regarding its balance limit policy. Therefore, the Commission writes: “For customers whom RCCI cannot contact or with whom it is unable to come to an agreement regarding how to use their excess balances prior to the company’s balance limit policy taking effect, the Commission expects RCCI to consider automatically subscribing them to an option that allows their balances to be reduced over time, without the customers incurring additional charges. In this regard, the Commission directs RCCI to report to the Commission, by 11 May 2020, on the options that it will put into place for those customers. The Commission will also examine the implementation of RCCI’s balance limit policy in the context of RCCI’s next Wireless Code compliance report, which is due on 31 March 2020.”
It should be noted that during the proceeding, in a reply letter dated November 26, 2018, Rogers said it had decided to delay its original plans to introduce a maximum amount of carry-over balance of $150 on December 31, 2018. In a revised communication to its affected prepaid customers in December 2018, Rogers said it would not make any changes with respect to prepaid balances over $150 until further notice.
Whether or not Rogers decides to reintroduce its planned balance limit policy for prepaid wireless services, given today’s decision from the Commission, remains to be seen.
