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Province targets monster cellphone bills
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WINDSOR, Ont. -- The Ontario government's proposed legislation to make the language in cellphone contracts clearer and reduce the cost to consumers for cancelling can't come soon enough for Anne Diamond.
The 29-year-old Windsor woman says the monthly bills for her iPhone service have skyrocketed largely because she hasn't got clear answers about the terms of her threeyear contract with Telus.
"The contract is online but it's very hard to understand," she said. As a result, her monthly bills for what started out as a $60-a-month plan in December have ranged from $260 to $340.
"I call them every month to find out what we can do to prevent this from happening in the future, because it's me using the phone," said Diamond, who is six months pregnant and keeps in touch daily with her husband overseas. "So I'm not blaming them for the usage charges. I'm just saying 'What can I do to prevent this in the future?'
And every month they just have me add a new feature, add a new feature, add a new feature, but it doesn't fix it."
Ontario announced Thursday that the government plans to introduce legislation that will set out new contract rules for cellphones, smartphones and other wireless devices that will force providers to be more upfront.
It will cap the amount wireless providers can charge for cancelling a contract at $50, though consumers can still be charged on a pro-rated basis for a free or discounted phone they received as part of the plan.
The new laws would require contracts be written in plain language and clearly spell out which services are included in the basic monthly fee and which cost extra. Wireless providers will have to get a customer's consent to amend, extend or renew a contract.
Also, companies won't be able to charge a consumer for providing a substitute phone while the contract phone is being fixed under warranty.
"I think it will affect a large number of Ontario consumers because 70 per cent of Ontarians are using wireless services (subject to contracts)," said Consumer Services Minister Margarett Best.
The minority Liberal government is adopting proposals put forward in a bill by one of its own members, Sault Ste. Marie MPP David Orazietti, that received support last year from all three parties.
"I would say for too long consumers have been gouged on their cellphone bills. The evidence indicates that out of 11 countries surveyed Canadians pay by far the highest fees for voice, text and data," Orazietti said.
He acknowledged that provincial legislation will have no affect on those fees, pay-as-go plans and other practices of the industry which fall under federal jurisdiction. Quebec has legislation governing wireless contracts and Manitoba is in the process of adopting similar rules.
"I think you're going to see other provinces follow suit simply because there is not the competition in the marketplace to bring down the cost to consumers," Orazietti said. "In fact, the federal government believes there's adequate competition now."
Marc Choma, spokesman for the Canadian Wireless Telecommunications Association, said in an email that the industry is already heavily regulated by the federal government and added provincial laws "may have an effect on sales and marketing practices that could see costs rise for consumers.
"We are not aware of any wireless service providers that automatically renew contracts, so we are unsure why this is even mentioned" in Ontario's proposed legislation, he said.
The CWTA wants a national set of standards "if further consumer protection measures are deemed necessary" - something the Canadian Radio-television Telecommunications Commission said last week it would explore, Choma said.
But at least one of the independent wireless providers that is attempting to challenge Canada's Big Three - Bell, Rogers and Telus - is applauding the proposed new contract rules in Ontario.
"(Voluntary) carrier codes governed by the CWTA have proven ineffective in protecting consumers and seem to act in the best interests of the Big Three, not Canadians," said Stewart Lyons, president and chief operating officer for Mobilicity.
"Ontario is definitely on the right track and we hope other provinces will keep the trend going until all consumers from coast-to-coast get the protection they deserve."
Canadian Consumers' Association vice-president Mel Fruitman applauded Orazietti for pushing for the legislation but criticized the government for not acting sooner.
"These are all things that have been bothering consumers for some time," he said.
MPP Taras Natyshak (NDP - Essex) said the proposed legislation doesn't go far enough.
"I guess it's a step forward in terms of consumer protection, but it doesn't really do anything for people who are locked into contracts today," he said.
The government says the legislation will go into effect six months after it is passed and cover new contracts, as well as existing agreements that are amended, renewed or extended.
"I think is would clear things up for people on what you're being charged," said Diamond.
evanwageningen@windsorstar.com
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