GATINEAU – The fine print shouldn’t be so fine and it should be written using regular words people understand, says the CRTC.
The Commission is putting the interests of consumers front and centre in the new draft wireless code of conduct released Monday by stating that contracts and other policies “the terms or use of the service, such as privacy policies and fair use policies, must be written in clear, easy-to-understand language, and presented in an appropriate font size.”
It’s not only the use of plain language the Commission is insisting wireless carriers adopt. The Regulator is also suggesting a personalized information summary be given to consumers outlining the specific details of their contracts. This will include things like how long a promotional rate may apply, the number of daily calling minutes and the amount of data a consumer has under a particular plan.
Under device costs, the draft code suggests wireless carriers provide a “description of any device supplied by the service provider when the agreement is made, including whether it is new or refurbished, whether it is locked, its retail price, and the subsidy for the wireless device (if any), and the amount of the device subsidy that is paid off each month.”
Fees resulting from contract changes and service cancellation – big consumer bugbears – were also addressed in the draft code. When it comes to contract changes, the CRTC has offered two options. First, if a wireless carrier changes the terms of the contract, the consumer has the right to cancel the contract without incurring any penalties.
The second option allows the carrier to change the contract as long as the elements being modified are indicated in the contract, and the service provider notifies the customer 30 days before the changes come into force. The consumer can still cancel the contract though if “the change would increase the consumer's obligations or reduce the service provider’s obligations” by providing written notice no later than 30 days after the change takes effect.
On cancellation fees, the Commission offered a couple of options that appears to remove the confusion from consumers. For post-paid subscribers, the first option is that a contract termination fee can’t be greater than the amount applied toward the subsidy each month multiplied by the number of months remaining on the contract. “If this amount is fully paid before the consumer cancels the service, no early termination fee will apply,” states the draft code.
The second option is a little more complicated. For those on contracts, the cancellation fee “may not exceed the sum of (1) the price of the services provided up to the effective cancellation date, and (2) any remaining economic incentive balance.” If there was no economic incentive, the consumer can cancel the contract with the fee being the price of services until the contract is terminated plus the lesser of “$50 or 10% of the monthly rate for unexpired months of the commitment period.”
The new draft code also tries to ensure that consumers understand what “unlimited” really means because there may be cases where additional fees kick in based on usage and behaviour. Wireless carriers have to explain whether there are limits to an unlimited plan and whether the carrier “retains the discretion to move the consumer to a ‘limited’ plan if these usage limits are exceeded. Service providers also have to explicitly outline the amount of use that will trigger a carrier’s decision to move a customer from an unlimited plan to a limited plan.
The CRTC is also calling on wireless carriers to implement tools that enable consumers to track their usage and explain the charges of exceeding their monthly cap. As well, service providers should give consumers the ability to cap their monthly usage and once reached, service would be suspended until the end of the billing period.
The code also goes into matters relating to the unlocking of devices, security deposits and the disconnection of service.
While the industry mulls this code (which, as we reported, takes many cues from the Quebec provincial law applying to wireless contracts) and its responses (which will come February 11th when the hearing starts), the CRTC has asked Canadians to weigh in via an online consultation.
Not surprisingly, the early returns through Monday show some Canadians hold their wireless companies in severe contempt for some valid – and many not so valid – reasons.
Cartt.ca will have more reaction to the CRTC’s draft wireless code of conduct in the coming days.
