Feds to proBe sAles prACtiCes in industry

Concerned public heard ‘loud and clear,’ leading to rare reversal of CRTC decision

TORONTO The Trudeau government has ordered the federal telecom regulator to investigate Canada’s largest telecommunications companies for high-pressure sales tactics, requesting a public inquiry into the issue after a series of media reports revealed “misleading and aggressive” practices.

Innovation, Science and Economic Development Minister Navdeep Bains announced Thursday that it directed the Canadian Radio-television and Telecommunications Commission to investigate and report on sales practices and to come up with solutions to strengthen consumer protections.

Earlier this year, the CRTC refused a consumer group’s request to hold such an inquiry after a CBC investigation raised questions about sales practices at BCE Inc. and Rogers Communications Inc. In the February letter denying the request, CRTC chairman Ian Scott said Canadians could use “well-established and effective mechanisms to resolve issues with their communications services providers.”

But in a rare move, the federal government is stepping in to reverse that decision. Bains said he’s taking action after hearing “loud and clear” from Canadians across the country about their experiences with high-pressure sales tactics.

“Like many Canadians, we are concerned by allegations of clearly inappropriate sales practices by telecom carriers,” Bains said in a statement. “I have directed the CRTC to thoroughly investigate this matter. No Canadian should ever be misled or treated unfairly by a telecom corporation, especially those who are most vulnerable.”

On Thursday, the CRTC acknowledged the government’s request and said it will announce next steps in due course. “We understand that there are growing concerns about this issue,” spokeswoman Patricia Valladao said in an email.

The Order in Council demanded the CRTC deliver a report by Feb. 28. It stated that Canadians vulnerable due to age, disabilities or language barriers can be hurt most if telecom employees or third parties sell them unsuitable services or fail to provide critical information. Such tactics can lead to higher bills or cause “stress, confusion and frustration.”

It’s public knowledge that complaints about telecoms are on the rise, Bains said.

The Commission for Complaints for Telecom-Television Services reported a spike in complaints in its mid-year report released in April, and 900 people — including 200 current and former telecom staff — contacted the CBC with accounts of “illegitimate” sales practices.

The government also drew attention to two characteristics of Canada’s communications landscape: one, many services are bundled and two, it is highly concentrated.

About 10 million Canadians buy bundled services, according to the CRTC. Typically, providers offer deals for people who buy internet, television and landline services.

The top five ownership groups account for 83 per cent of revenue in the communications sector, according to the CRTC’s 2017 annual report on the industry. Those groups are Bell, Rogers, Telus Corp., Quebecor Inc., and Shaw Communications Inc. and Corus Entertainment Inc. (The CRTC combines Shaw and Corus. They are separate entities, but both are controlled by the Shaw family.)

In emailed statements, the Big Three companies emphasized the importance of customer service.

“We’re happy to talk with the government about customer service. Bell’s success depends on delivering the best customer experience and we’re seeing consistent growth in both customer satisfaction and subscriber growth,” Bell spokesman Marc Choma wrote.

“We strive to deliver the best possible experience for our customers with products and services that best meet their needs and budget, and we will participate and share how we work to be clear, simple and fair with our customers every time they contact us,” Rogers spokeswoman Samantha Grant said.

Telus, which received fewer complaints than its top competitors, noted that it was not included in the critical coverage, according to a statement attributed to Johanne Senecal, senior vice-president of government and regulatory affairs.

Telus will also participate in the CRTC process, and said it’s optimistic the review will “elevate and standardize best practices.” Financial Post