MONTREAL – In a ruling handed down earlier this month, The Court of Quebec ruled the federal Telecommunications Act not only has precedence over the provincial Consumer Protection Act but also that the sections of the provincial law that deal with contractual issues in telecommunications are null and void.

Investigators with Quebec’s Consumer Protection Agency (in French, the Office de la protection du consommateur, or OPC) originally found that contracts from telecommunications providers contravened sections of the CPA (in French, the Loi sur la protection du consommateur, or LPC), enacted in 2009.

Infractions were deemed to have occurred between November 2012 and May 2013 and the OPC notified the companies in 2014. The Court held its hearing in September and October 2018 over 10 days.

The case made by Bell and Telus was that federally regulated companies are already covered by the Telecommunications Act and that the provincial legislation can not also apply. The Court agreed with them and found them not guilty.

The ruling, written in French, reads, “Considering all circumstances, the Court concludes that the application of the new sections of the PCA to the defendant constitutes a severe and a important infringement in the federal jurisdiction in interprovincial telecommunication matters and that the doctrine of interjurisdictional immunity make these section not applicable to the defendant.”

This ruling, however, reopens the constitutional issue of concurring legislation whereas can two laws from two levels of government oversee the activities of a company while respecting their individual jurisdictions.

Can the provincial Consumer Protection Agency charge companies with infractions on contract and consumer issues (something which is within its constitutional powers)? The judge said no, when it comes to telecommunications.

Yet, others will argue that the Marcotte Case (where the Supreme Court said provincial consumer protections on federally regulated banks is okay) allows concurring federal and provincial jurisdictions: “The mere fact that Parliament has legislated in an area does not preclude provincial legislation from operating in the same area,” read that decision in 2014.

Parties have 30 days to appeal. The provincial government said it would review the decision.

This issue is a very important one as the wireless industry moves forward towards 5G and requires far more radios in market than there are now. Besides provincial consumer laws, municipal governments have also been trying to flex their muscles  when it comes to conditions and fees for rights of ways and Canada’s telecom companies have been urging the Broadcast and Telecom Legislative Review panel to make a strong statement on the paramountcy of federal legislation. This decision may well start to point the way.

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