The Canadian Radio-television and Telecommunications Commission (CRTC) has launched a proceeding against BCE Inc.’s Bell Canada, Telus Communications Inc. and Rogers Communications Inc., alleging they may be violating the new ban on activation and modification fees. The regulator has given the three companies until July 30 to justify their new charges.
New consumer protections took effect June 12
The CRTC’s new consumer protections, effective June 12, prohibit service providers from charging fees when Canadians modify or cancel their cellphone and internet service plans. However, between May 6 and June 16, the CRTC learned that all three telecom companies allegedly charged consumers various activation-related fees despite the ban.
“Part of the Commission’s work is to ensure that service providers comply with existing consumer protections,” the CRTC said in a notice on Thursday. “The Commission recently became aware (the companies) have introduced fees that may be contrary to this prohibition.”
Bell's $40 device-handling charge under scrutiny
CRTC staff on May 6 learned that Bell had introduced a $40 device-handling charge for customers purchasing a cellphone along with their wireless service. Bell claims this fee is not charged as a result of activating a new retail telecommunications service plan. The CRTC on June 12 asked Bell whether it had ceased charging these fees after the new policy came into effect, but Bell confirmed on June 17 that it would continue to apply the device-handling charge, believing it falls outside the prohibition.
Telus's $15 SIM card fee questioned
The CRTC learned on June 9 that Telus had started charging a $15 fee for the purchase of a SIM card or eSIM as part of its wireless service, which the regulator said did not appear to fall under the exemption set out in the policy. Telus responded on June 17 that it had not stopped charging the SIM card fee and considered it compliant.
Rogers introduces multiple new fees
CRTC staff learned on June 16 that Rogers had introduced several fees related to purchasing a device: a $40 device setup charge, a $25 shipping charge for devices ordered online, and an unspecified SIM fee. Rogers confirmed on June 18 that it had not stopped charging these fees because it considered them compliant. The company said the $40 device setup charge is tied to the optional purchase of a device and is not related to activation or modification of a service plan. Rogers also noted that the SIM fee has been charged for many years for customers requesting a new physical SIM card to replace a lost or damaged one, and the shipping fee reflects the real cost of delivery.
Deadline for submissions and potential penalties
The three telecom companies must make submissions to the CRTC addressing the issues by July 30 and reply to matters raised during the intervention phase by Aug. 10. If found to have committed a violation, they are individually liable for administrative monetary penalties not exceeding $10,000,000 for the companies and not exceeding $25,000 for their relevant officers or directors.
