GATINEAU – All large internet service providers will have to abide by the CRTC’s new Internet Code of conduct as of January 31, 2020.
The new code, which will apply to Bell, Cogeco, Eastlink, Northwestel, Rogers, Shaw, Sasktel, Telus, Vidéotron, and Xplornet has been created to try to ensure consumers receive easier-to-understand contracts, documentation and policies surrounding service calls, outages, security deposits and disconnections, reads the release. It’s worth noting here this new code does not apply to mobile wireless internet providers. (Correction: An earlier version of this story mentioned the code will apply to small businesses, but paragraph 89 makes it clear that’s not the case.)
Consumers often find the terms surrounding their internet services confusing since, when it comes to these larger facilities-based providers, broadband service is very often bundled in with one or more services such as TV, home phone, wireless and security. As well, they often miss the fine print from carriers (or it is not clearly communicated by those providers) which denotes the end dates of promotional pricing periods, or that regular prices can increase at any time.
That said, many smaller independent operators have long offered television and/or home phone in a bundle – and a growing number of independent broadband resellers are also launching, or have launched, TV services and the large ISPs and consumer groups had hoped the code would apply to smaller operators, too.
The CRTC also made it clear, however, it still expects small ISPs to “behave in a manner consistent with the principles” of the code. About 90% of Canadian households have an Internet service subscription and 87% of those are with the large ISPs listed above, according to the Regulator.
The new code sounds a lot like the Wireless (2013) and TV Service Provider (2017) codes as it calls for:
- clearer information about prices, including for bundles, promotions and time-limited discounts, thanks to a critical information summary to be made available to each customer.
- bill shock protection, through notifications when customers approach and reach their data-usage limits.
- greater flexibility thanks to new rules permitting customers to cancel a contract within 45 days, without paying early cancellation fees, if the contract differs from the offer.
- a 15-day trial period where a customer can cancel for no penalty, if they are offered a contract which has an early cancellation fee. It's 30 days for any customer who is disabled.
ISPs will need to notify a customer when they reach, 75%, 90% and 100% of their data-usage limit within a single monthly billing cycle, something which many of them have largely dealt with by increasing their offers of unlimited data on home internet.
The Commission plans to review the code within three years to make sure it’s working – however some have suggested the CRTC should look into combining its codes into one consumer protection protocol.
CRTC chair Ian Scott told Cartt.ca in an interview he’s heard that idea himself and it’s something that has been discussed inside the Commission and was referenced in its report on telecom sales practices, but while each code has the ultimate goal of protecting consumers and have some commonalities such as the requirements for plain language and bill shock protection, there are sufficient differences between wireless, TV and broadband services that separate codes also make sense right now.
Plus, if it waited on a process to combine the codes into one, this new consumer protection would have taken too long – and it was something Scott had on his mind when he was hired as chair almost two years ago, pre-dating the telecom sales practices proceeding.
“If we were trying to (combine the codes) now, it would have significantly delayed the issuing of the Internet code, which is not in the public interest,” he said, “so we made the decision to go ahead with the code as it is today to get it in place as quickly as possible.
“When I got here I said ‘we have a wireless code and we have a television code. Is there any reason why we don't have one for Internet service’?” he continued, especially since complaints over broadband services have been rising rapidly. “We began to see, both in our internal numbers… and through the CCTS numbers, an increase in complaints about Internet. So it was clear that the problems were there and growing and we started work on it,” well in advance of the proceeding on aggressive telecom sales practices, he added.
Reaction flowed into our emailboxes Wednesday afternoon:
Minister of ISED Navdeep Bains: “The CRTC’s Internet Code announced today is a welcome addition to our government’s work to protect Canadian consumers as it will empower Canadians to demand fair treatment from their internet service providers.”
Commissioner for the Commission for Complaints for Telecom-television Services, Howard Maker: “For a number of years we have observed a steady increase in the number of customer complaints related to internet service and have provided this information to the industry and to the CRTC through our annual and mid-year reports, and in the Internet Code proceeding. We are in the process of reviewing the new Code, and we hope that it will help set a standard for the large internet service providers and address issues of customer concern.
Union des Consommateurs, a consumer group based in Québec said by email and in French that it is disappointed with the new code, which adds little to the Consumer Protection Act of Québec.
The group said it does not understand why customers of smaller ISPs would be less protected than those of larger ISPs and on early cancellation fees they are concerned that the CRTC lets ISPs determine the amount of the fees, while they are limited in the Wireless Code. This is a competitive barrier and they do not understand the Commission’s choices.
“It is sad to see the Commission take a narrow vision of consumer protection limiting itself to ensure providers inform their customers. Informing consumer sis important but just as important is ensuring conditions are fair and equitable,” said the group.
Two carriers responded to our requests. “Rogers welcomes the internet code as it promotes clarity, and ensures consumers are better informed of their rights and responsibilities. We are thoroughly reviewing today’s decision,” said a Rogers spokesperson by email.
“The CRTC’s Internet Code introduces a number of practices that have long been in place at Telus,” said Zainul Mawji, president of home and small business solutions for Telus, in an emailed statement. “In our view, the CRTC has provided a balanced code that will protect customers while supporting necessary network innovations and investments.”
Prior coverage:
Internet code of conduct: A decent idea that needs work, say ISPs
Internet Code, a third code, may be confusing for some
Reply phase sees incumbents caution Commission over code construction
CRTC wants more input on ISP code of conduct, via Facebook
