CRTC makes key rulings just before holidays

Canadian consumers now have an independent body with which to launch complaints against their telecommunications service providers and will be able to register their telephone number on a National Do-Not-Call List for telemarketing by September 2008. The CRTC issued two key rulings just before the Christmas break: it approved with changes the Commissioner for Complaints for Telecommunications Services (CCTS) and awarded to Bell Canada the contract to operate the National Do-Not-Call List. Telecom Decision 2007-130 ushered in the final structure, mandate, membership and appropriate remedies of the consumer complaints mechanism. Consumer groups lauded the commission for taking some of their concerns into account, particularly mandatory membership to the body, the identification of trends or systemic issues and the appropriate compensation level for remedies. CCTS members have yet to voice their opinions regarding the changes imposed by the CRTC. Mandatory membership is likely to cause a big headache for those telecommunications service providers that didn't want to join in the first place. They are now forced to participate and fund the independent complaints body's operation. But perhaps the biggest win for consumers is the elimination of the limitation of liability provision from final damages awarded in the case of a binding decision from the commissioner. Under the members' proposal, this would limit the amount of damages awarded to what was contained in the customer contract. The CRTC was unconvinced this would best serve consumers. "The commission considers that it would be inappropriate to allow a limitation of liability clause in a customer contract to effectively overrule a binding decision made by the CEO since doing so would effectively render illusory the agency's ability to award consumers meaningful financial compensation," the CRTC concluded. Will the prospect of having to hand over $5,000 to a customer and the potentially bad press that ensues be enough to discipline the telcos? That remains to be seen, but at least consumers now have what appears to be an effective mechanism to have their complaints addressed. While the commission rendered a decision on the CCTS quickly, awarding the contract to operate the National DNCL was a long time coming. On December 21, the CRTC announced that Bell Canada was the only bidder compliant with requirements laid out in the request for proposals, and therefore awarded the contract to the ILEC. The commission also likely raised the ire of the entire Canadian telemarketing industry by requiring it to fund the list. "Bell Canada will operate the National DNCL using the fees that telemarketers will pay to subscribe to the list," reads a CRTC statement. The Canadian Marketing Association was quite adamant during the consultation on potentially assigning unsolicited telemarketing complaints investigation to the CCTS that the National DNCL should be funded by the CRTC or by the government directly (see November 2007 Telemanagement for comments). But there are still some unanswered questions about the National DNCL. What types of companies will be required to subscribe to the list? The companies with outbound call centres? The companies that use them? Or both? How is this determination made? What rates will be assessed to subscribe to the list? Will rates be graduated to reflect company size? How will international firms be treated under the Canadian regime? Questions that will hopefully be clarified in 2008.

CRTC makes key rulings just before holidays

News | January 4, 2008

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