CRTC calls on Bell, Rogers and Telus to justify new fees as ban on old fees comes into effect

Between May 6 and June 16, the CRTC learned that all three telecom companies allegedly had charged consumers various activation related fees, despite the ban. Photo by Brent Lewin/Bloomberg

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The CRTC had established new consumer protections, which came into effect on June 12, that prohibit service providers from charging fees when Canadians choose to modify or cancel their cellphone and internet service plans.

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“Part of the Commission’s work is to ensure that service providers comply with existing consumer protections,” it said. “The Commission recently became aware (the companies) have introduced fees that may be contrary to this prohibition.”

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It said CRTC staff on May 6 learned that Bell had introduced a $40 device-handling charge for customers purchasing a cellphone along with their wireless service, which Bell claims is not charged as a result of activating a new retail telecommunications service plan.

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The CRTC on June 12 asked Bell Canada whether it had ceased charging these fees after the new policy had come into effect, but Bell on June 17 confirmed that it would continue to apply the device-handling charge, which the company believes falls outside of the prohibition.

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Meanwhile, the CRTC learned on June 9 that Telus had started charging a $15 fee for the purchase of a SIM card or eSIM as part of its wireless service, which they said did not appear to fall under the exemption set out in the policy.

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The regulator on June 12 asked Telus whether it had ceased charging these fees, to which Telus responded on June 17 that it had not stopped charging a SIM card fee and it considered it to be compliant.

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Finally, CRTC staff learned on June 16 that Rogers had introduced several fees related to purchasing a device: a $40 device setup charge, a $25 shipping charge for devices ordered online and an unspecified SIM fee. After being asked whether it had ceased its practice, Rogers on June 18 responded to confirm that it had not stopped charging these fees because it considered them to be compliant.

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Rogers said the $40 device setup charge, which it said is tied to the optional purchase of a device, is not related to the activation or modification of a service plan, nor is its main purpose to discourage subscribers from modifying or cancelling their service plan.

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It said the SIM fee is not new and has been charged for many years from customers who request a new physical SIM card to replace a lost or damaged one. Rogers said the shipping fee has been charged periodically for many years and is a standard charge that reflects the real cost of delivery.

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The three telecom companies must make submissions to the CRTC addressing the issues by July 30 and reply to matters raised during the intervention phase by Aug. 10.

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If the companies are found to have committed a violation, they are individually liable administrative monetary penalties not exceeding $10,000,000 for the companies and not exceeding $25,000 for their relevant officers or directors.

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