The CRTC has told Bell via a letter that the telco’s introduction of a $40 device handling fee charged to customers purchasing a new device along with their wireless plan may be in violation of the commission’s new rules eliminating activation, modification and cancellation fees.
In a letter dated May 6, Scott Hutton, the CRTC’s vice president of consumer, analytics and strategy, said he had been informed of the new Bell Mobility practice and it did not appear the new fee falls under the exemption in the new regulatory policy — which comes into effect June 12 — that allows for some fees related to optional services and products.
“A phone is a device that is required for the delivery of the wireless service customers are purchasing. It would not appear that the device handling charge falls under the exemption considered by the Commission for optional services and products. A fee associated with providing a phone may be considered to be an activation fee that is prohibited under s. 27.04 of the [Telecommunications] Act,” Hutton wrote to Bell.
“It is my hope that this situation can be resolved at this stage and will not require more formal regulatory action on the part of the Commission once the prohibition comes into effect,” Hutton continued.
In addition to being posted on the CRTC’s website, a copy of the letter will be available on the record of any relevant proceeding the commission may launch, he said.
Bell’s new $40 device handling charge was reported by iPhone in Canada on May 5. The online publication’s report noted Bell and Virgin had updated their websites to remove an $80 connection fee prohibited by the CRTC, but both carriers had introduced a new “one-time device handling charge” of $40 to cover “fulfillment costs associated with your device order”, according to changes on Bell’s website seen by iPhone in Canada.
As of May 12, the one-time $40 device handling charge is still mentioned on Bell’s website.
