GATINEAU – Consumers’ associations say the CRTC must ensure broadcast distribution undertakings (BDUs) do a better job of promoting the availability of a small entry level package as well as explaining it more clearly to interested customers.
In final submissions filed last week, the Consumers’ Association of Canada and the Public Interest Advocacy Centre (CAC-PIAC) and the Union des consommateurs tell the Commission certain information on entry level packages is lacking or unclear and that BDUs should put skinny basic at the forefront of their promotional activities.
CAC-PIAC believe the rules around the promotion of the skinny basic package should be strengthened. It notes that 62% of Canadians, according to polling results, found it difficult to get information on the entry level package. The group adds it’s concerned that the BDUs customer service representatives aren’t doing a good enough job of talking up skinny basic.
“For instance, the approach described by many BDUs appears to consist of asking a customer about all the shows and channels his or her family watches, then recommending the plan which would provide those channels. This pushes customers towards plans which are more expensive than they may afford or need because it doesn’t take into account the substitutability of channels,” argues CAC-PIAC.
The Union des consommateurs acknowledges that Vidéotron is far from being the worst on this front, but it doesn’t mean the company is the poster boy for how to do promotion either. For example, the association points to the information made available on its services including skinny basic, saying more should be done to enhance its visibility.
It adds there should be clarity around fees that may or may not apply to an entry level service.
How can there be a serious and equal conversation of skinny basic promotion when BDUs highlight set top box fees but not the bundle discounts available to those who subscribe to an entry level basic package, asks the Union des consommateurs.
The association also indicates in its final submission that a standalone basic package without a broadband Internet subscription should be offered by all BDUs, including independent providers. It recognizes though that some of them may need to be exempted from this type of rule, something it’s not opposed to, as long as those independent BDUs can prove that offering a standalone skinny basic would be harmful to their business.
CAC-PIAC raise the set top box issue in their final submission. The group notes consumers are often saddled with paying more than the value of the box because they rent them. As well, they could be subjected to fees for damages, late returns or even for lost or stolen boxes.
The group argues that set top boxes should depreciate in value during the fixed term of a contract and BDUs should offer consumers the opportunity to purchase them outright. This, says CAC-PIAC, “would help relieve consumers who are frustrated with ongoing, and at times seemingly arbitrary, equipment rental charges.”
(Ed. Note: Some carriers do offer set top box purchase options.)
As well, the Commission could enshrine equipment charge provisions in the TV Service Provider (TVSP) Code. The group says the TVSP Code should be amended to include rules that allow for set top boxes to depreciate in value over the course of a contract or through payments made on a month to month basis. Consumers would be also able to purchase the set top box at the depreciated price. If that depreciated price is $0, then a nominal fee would apply.
CAC-PIAC acknowledge that the TVSP Code would require TV service providers to include monthly equipment charges in the written agreement as well as in the summary of the agreement. They add, though, that “BDUs should also include here information related to the depreciated value of the equipment and the purchase options available to the customer.”
BDUs’ final replies are due September 22. Cartt.ca will have more once those are published.
