OTTAWA – The Public Interest Advocacy Centre (PIAC) and the Consumers’ Association of Canada (CAC) have filed a joint application challenging the wireless device deposit programs offered by Rogers and Telus.
According to the press release, the Rogers “NEXT” and Telus “T-Up” programs require subscribers to pre-pay a monthly fee in addition to their usual service charges for at least 12 months. These payments, which range from $17 to nearly $30 a month, claims the application, go toward the partial cost of a new cellphone. If the customer stays subscribed and returns their old phone and signs a new two year contract, then they receive a new phone at a discounted rate and any balance owing on the previous cellphone is forgiven. However, the release continues, a key element of these programs is that the fees paid into them are non-refundable. A customer will lose any money already paid towards the new cellphone if he or she wishes to switch service providers and will still have to pay off any remaining balance on their old phone to switch companies.
PIAC and CAC argue that this practice violates the CRTC’s Wireless Code, and is asking the Commission to order that all deposits be made fully refundable, with interest, at any time, and that Rogers and Telus return any fees from previously cancelled deposit plans.
“The fees imposed by these programs, by virtue of being non-refundable, act as a termination fee, and prevent people from switching service providers”, said PIAC’s executive director and general counsel John Lawford, in the release. "That’s against the letter, and the spirit, of the Wireless Code which exists to protect consumers, and also to ensure customers do not face unreasonable limits on their ability to switch.”
But a Telus spokesperson told Cartt.ca that PIAC and CAC have misunderstood the T-Up program altogether, which is actually an optional service, and noted that the organizations failed to contact Telus directly to clarify the details of the program before filing the complaint.
"T-Up is not a deposit program as they are claiming, but an optional add-on to our extended warrantee", reads the spokesperson's emailed statement. "It’s intended for customers who like to upgrade to a new device every year – they pay $4 a month, an optional extension of our device warrantee, and can trade in their device for a new one after a year without paying off their device balance, regardless of their device’s real value or condition at that time.
"It is counterintuitive that PIAC and CAC are arguing against an optional service we launched based on input from customers. They are taking a stand against customer choice."
