In the second of two recent major announcements (the first being yesterday’s release of the CRTC’s inaugural guidelines under Canada’s impending anti-spam legislation – see: here), Canada’s telecom regulator today announced public consultations on a new mandatory wireless code. The thrust of the new consultations appears to be primarily two-fold: to impose guidelines for contracts (e.g., increased clarity of terms, required terms, changes to terms, cancellation, expiry, renewals, etc.) and reduce potential misleading advertising related issues.
While the CRTC has allowed market forces to govern the wireless industry since the early-1990s, this new announcement shows some willingness by the CRTC to regulate Canada’s concentrated wireless sector (albeit at this stage through a mandatory code of conduct). In making the announcement, the CRTC’s Chairman Jean-Pierre Blais said:
“Our goal is to make sure that Canadians have the tools they need to make informed choices in a competitive marketplace. … In the past, Canadians have told us that contracts are confusing, and that terms and conditions can vary greatly from one company to another. We are asking them to assist us in developing a code that will help them better understand their rights as consumers and the responsibilities of wireless companies.”
The CRTC’s Notice of Consultation describes the rationale for the new consultation and code:
“In Telecom Decision 2012-556, the Commission determined that it would be appropriate to develop a code for retail mobile wireless data and voice services (mobile wireless services) to ensure the clarity of mobile wireless service contracts and related issues for consumers. The Commission concluded that consumers need additional tools to better understand their basic rights, as well as their service providers’ responsibilities with respect to mobile wireless services, in order to participate in the competitive market in an informed and effective manner. With this Notice of Consultation, the Commission initiates a proceeding to establish a mandatory code to address the clarity and content of mobile wireless service contracts and related issues … The code developed as a result of this proceeding is intended to provide a clear and concise list of consumers’ rights and service providers’ responsibilities regarding mobile wireless services.”
The CRTC has asked for comments until November 20th on wireless terms and conditions that should be addressed (for cellphones and mobile devices), who the code should apply to, how it should be enforced and the potential effectiveness of the code. Public hearings are to begin on January 28, 2013 in Gatineau.
In its announcement, the CRTC highlighted a few key advertising and marketing themes reflected in both on-going litigation (e.g., the recent Rogers/Bell/TELUS case) and being targeted by other agencies (e.g., the Competition Bureau and the Canadian Transportation Agency), including clear price claims and disclosure of additional fees.
The CRTC has set out the following general elements it is considering addressing in the new wireless code: clarity of contract terms and conditions; changes to contract terms and conditions; contract cancellation, expiration and renewal; clarity of advertised prices; application of the code to bundles of telecommunications services; notification of additional fees; privacy policies; hardware warranties and related issues; loss or theft of hardware; security deposits; and disconnections.
Judging from the flurry of articles and social media coverage on this today, it appears the CRTC will soon have its hands full with consumer input on its proposed new code.
For a copy of the CRTC’s announcement and submission information see: CRTC invites Canadians to participate in the development of a code for cellphones and other mobile devices.
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