CRTC ordered to investigate Rogers, Bell, Canada’s ‘large telecommunications carriers’ over high-pressure sales practices

The federal government has directed Canada’s telecom watchdog to launch an investigation into allegations regarding high-pressure sales practices used by Canada’s “large telecommunications carriers.”

According to a June 14th, 2018 Innovation, Science and Economic Development Canada (ISED) backgrounder, the Governor in Council has directed the Canadian Radio-television and Telecommunications Commission (CRTC) to make a report “regarding the retail sales practices of Canada’s large telecommunications carriers.”

The CRTC has until February 28th, 2019 to complete its inquiry and submit its report.

A letter penned by innovation minister Navdeep Bains to Matthew Boswell — the interim commissioner of competition at the Competition Bureau — further explains the federal government’s decision to investigate Canada’s largest carriers for their sales practices.

“In recent months, there has been a series of such reports alleging certain practices by sales agents of telecommunications carriers such as aggressive upselling or failing to provide necessary information for Canadians to make informed decisions,” wrote Bains, in his June 14th, 2018 letter to the Competition Bureau.

“There are reports that these practices exploit the unequal level of information possessed by sales agents relative to consumers and that vulnerable Canadians are more likely to be harmed.”

“In recent months, there has been a series of such reports alleging certain practices by sales agents of telecommunications carriers such as aggressive upselling…” — Navdeep Bains, ISED

Bains’ letter references reports that Canadian carriers — including Bell and Rogers — repeatedly engaged in unsavoury and harmful sales practices, often upselling products and services to customers who are uninformed or unaware.

The letter further requests that the Competition Bureau aid the CRTC in its inquiry, in order to produce its telecom sales practices report.

“In recognition that you and your officials have expertise and experience with respect to deceptive marketing practices that could be useful in assessing the reports of high pressure sales tactics, I request that you assist the CRTC in its inquiry leading to the report in the manner and to the extent that you judge appropriate,” wrote Bains.

Great news for the PIAC

Today’s announcement comes roughly four months after CRTC chairperson Ian Scott confirmed that the Commission wouldn’t conduct an investigation into unsavoury telecom sales practices at the request of the Public Interest Advocacy Centre.

In Scott’s February 14th, 2018 letter to the PIAC, he argued that Canadians already have a number of avenues in order to submit complaints about telecom sales.

“If Canadians consider that their wireless, internet, home phone or TV service provider has not provided clear and accurate information to them about their [contracts], or is not acting in a manner consistent with the CRTC’s Wireless Code or Television Provider Service Code, they should first try to resolve the issue with their service provider,” said Scott, in the February 14th letter.

“If the matter is not resolved to their satisfaction, they are encouraged to escalate the complaint to the Commissioner for Complaints for Telecom-Television Services (CCTS).”

“There are reports that these practices exploit the unequal level of information possessed by sales agents relative to consumers…” — Navdeep Bains, ISED

It’s also worth noting that two of Canada’s three largest telecom service providers, Bell and Rogers, denied the allegations that customer service representatives pressured customers into making purchases they didn’t need.

MobileSyrup has reached to the CRTC, the PIAC, Rogers, Bell and Telus for comment. This story will be updated with a response.

Source: ISED

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