With a number of provinces creating their own consumer protection laws, in April the CRTC responded to a number of industry and consumer groups that were calling for the Commission to develop a national code for the mobile wireless industry.
The challenge was that the CRTC had already determined that this was a sector that was sufficiently competitive to warrantĀ forbearanceĀ for regulation. In other words, coupled with the Policy Direction from cabinet a few years ago, the CRTC first needed to assess whether market conditions had changed sufficiently to warrant intervening in the marketplace.
Earlier today, the CRTC issued two documents:
- Telecom Decision CRTC 2012-556, its decision on the market conditions; and,
- Telecom Notice of Consultation CRTC 2012-557, launching a consultation on a national code of conduct for the mobile wireless industry.
In its decision on the state of the market, the CRTC decided that it will continue to forbear from regulating retail mobile wireless voice and data servicesĀ prices and indicated that it does not intend to “interfere in the competitiveness” of the market.
However, to ensure that consumers are able to participate in the competitive market in an informed and effective manner, and to fulfill the policy objectives of the Telecommunications Act, the Commission finds it necessary to develop a mandatory code to address the clarity and content of mobile wireless service contracts and related issues (the Wireless Code).
So the CRTC will avoid stepping into pricing issues directly, however, it appears that the Commission is sensitive to consumers being faced with sticker shock when bills arrive. Among the areas to be reviewed in the coming consultation is a section on clarity of pricing:
a provision that addresses clarity of advertised prices of services included in a contract, such as monthly and one-time charges for mobile wireless services, including optional services, devices, data and roaming, and any associated fees.
The CRTC has also asked parties to comment on enforcement of the code:
18. The Commission specifically calls for comments, with supporting rationale, on the following:
- Who should enforce the Wireless Code (e.g. the Commission, the CCTS, or other)?
- What mechanisms should be used to ensure compliance with the Wireless Code?
- What recourse and remedies should be available to consumers if their service provider does not comply with provisions in the Wireless Code (e.g. liquidated damages clause)?
- What mechanisms should be used to promote the Wireless Code among consumers?
- When should the Wireless Code be implemented?
How will the provinces respond to the CRTC consultation? How will the Wireless Code interact with provincial laws that are already on the books or under consideration by various legislatures?
The CRTC’s consultation key dates include a November 20, 2012 deadline for detailed written submissions and an oral hearing phase starting on January 28, 2013.