Canada’s telecommunications regulator is launching a review to determine if the Big Three providers have violated its new rules banning so-called junk fees.
The CRTC announced the consultation Tuesday, saying it will require Bell Canada, Telus Corp. and Rogers Communications Inc. to demonstrate their fees do not contravene its policy.
The new regulations came into effect June 12 prohibiting activation, modification and cancellation fees in a bid to make it easier for customers to switch internet and cellphone plans without having to worry about unexpected costs.
If the commission determines the companies have violated the rules, they could face monetary penalties of up to $10 million while relevant managers could be penalized up to $25,000. The regulator could also order the providers to comply with the policy within 60 days.
“We will be asking for evidence from them. We will be asking them to justify themselves and then there'll be decisions made by the commission as to what are the next steps going forward.,” Scott Hutton, the CRTC’s vice-president of consumer, analytics and strategy, said in an interview earlier this month.
“The one thing I can say is that we’re taking this case seriously and we will move quite quickly.”
Bell, Telus and Rogers—along with members of the public—have until July 30 to submit comments. A deadline of Aug. 10 is in place for the companies to respond to matters raised by others during the review.
The CRTC has warned each of the companies over their recently introduced fees. It said the charges do not appear to qualify for an exemption to the new policy meant for optional services or equipment customers choose to purchase.
The companies argue those specific fees are related to optional products and were introduced to help them recover their own costs.
In May, Bell introduced a $40 device handling fee that applies when customers purchase a device along with their wireless service plan. Then came Telus’ $15 fee for customers switching to a new SIM card, with an additional $10 shipping charge applicable in some cases.
The commission has also accused Rogers of charging customers a new $40 device setup fee, a $25 shipping charge and an unspecified SIM card fee. Rogers said the shipping and SIM fees are not new, and that the latter is only charged when a customer replaces a lost or damaged SIM, rather than at activation.
But when it comes to device and SIM fees, Hutton said the CRTC doesn’t view those as optional because cellphone plans are dependent on accompanying hardware.
“You need a phone for your plan. It’s no more complicated than that,” he said.
“Someone else is saying, ‘Oh, well I’ll charge you for a SIM card.' You need a SIM card for your plan. Those are not optional.”
Bell, Telus and Rogers did not immediately respond to requests for comment.
