PUBLIC INTEREST ADVOCACY CENTRE
LE CENTRE POUR LA DÉFENSE DE L’INTÉRÊT PUBLIC
ONE Nicholas Street, Suite 1204, Ottawa, Ontario K1N 7B7

8 January 2018
Mr. Ian Scott
Chairperson and Chief Executive Officer
Canadian Radio-television and Telecommunications Commission
Ottawa, Ontario
Canada, K1A 0N2
Re: Commission Inquiry into Sales Practices of Major Communications Providers
Dear Mr. Scott:
The Public Interest Advocacy Centre (PIAC) 1 is writing to you today to request that
the Canadian Radio-television and Telecommunications Commission (CRTC) launch a
formal inquiry under s. 48 of the Telecommunications Act and ss. 12 and 20 of the
Broadcasting Act into the revelations of aggressive, inappropriate and potentially
misleading sales practices by major Canadian wireless, Internet, television and home
phone providers.
Recent media stories in late 2017 have revealed disturbing practices by agents of
at least one major Canadian telecommunications and TV service provider, 2 including
“upselling” and overselling, as well as allegations of misleading sales practices. Many of
these aggressive sales practices appear to have targeted vulnerable consumers, including
older Canadians, grieving spouses and blind customers.

1

PIAC is a nationally incorporated non-profit organization and registered charity that has, since
1976, provided legal and research services on behalf of consumer interests, and, in particular,
vulnerable consumer interests, concerning the provision of important public services. PIAC has an
interest in the protection of consumers generally and telecommunications and broadcasting
consumers in particular and has represented consumers in many Commission proceedings. Thus,
PIAC submits that it is an “interested person” under s. 48 of the Telecommunications Act.
2
See: “Bell insider reveals high-pressure sales tactics required on every single call” by Erica
Johnson, CBC News Posted: Nov 19, 2017 9:00 PM ET  Last Updated: Nov 20, 2017 8:28 AM ET.
Online: http://www.cbc.ca/news/business/bell-whistleblower-reveals-high-pressure-sales-1.4404088
and “Bell customers, employees flood CBC with complaints about high-pressure sales” by Erica
Johnson, CBC News Posted: Nov 22, 2017 5:00 AM ET  Last Updated: Nov 22, 2017 5:00 AM ET.
Online: http://www.cbc.ca/news/business/bell-high-pressure-sales-reaction-1.4413187

 Non-disclosure of terms and misleading information about terms accounted for
10.9% of complaints to the CCTS in 2016-17, a 6.6% increase in complaints year over
year. Incorrect charges, inadequate quality of service, the legitimacy of early cancellation
fees, material changes to contracts, breaches of contracts, and credit /refunds not being
received are also among the top 10 issues raised in complaints to the CCTS which also
may be attributable at least in part to misleading sales or marketing. The volume of all of
these categories of complaints has increased substantially since 2015-16.
Based on its focus groups and experiences running digital literacy workshops,
Ageing, Communication, Technologies (ACT Project) reports that:
Older adults expressed frustration with needing to involve their children or younger
friends or relatives in negotiations with service providers to ensure they are treated
fairly, can access the same pricing than their younger counterparts, and reach an
agreement that is commensurate with their needs. They are aware that if they are
not savvy with service providers, they risk being taken advantage of. This means
that there is a fear of changing providers because they may end up with more
expensive and lower quality services.
Some of the participants have felt undue pressure to add more services through
bundling. They do not always need or want the services they are getting, and are
worried that they are paying more to get less. Through our years of leading digital
literacy workshops in low income building for older adults in Montreal, we have
become acutely aware of practices of selling packages to older adults that are
disproportionate to their needs or uses. A recent CBC investigation suggests that
these high-pressure sales tactics are especially damaging to older adults (Johnson,
November 2017). Furthermore, older adults are often convinced to get specialty
channels on a trial basis, only for the costs to be added to a future bill. This practice
of putting the onus on the consumer to cancel free trials and to begin charging for
services after the trial period is perceived as being deceptive. 3
Such practices create real consumer harm. Courts in Canada have already found
as a matter of law that misleading sales practices per se harm consumers and
competition. 4
The nature of these allegations is so serious that a formal inquiry into the entire
industry’s sales practices is required. PIAC would be surprised, given the nature of the
markets and market players involved, if these practices were not widespread across the
industry, rather than being the property of one provider.

3 Ageing, Communication, Technologies (ACT Project), Concordia University, Intervention on The
Future of Audio and Video Programming in Canada: What Will Come Next? Phase I, BNC CRTC
2017-359 (1 December 2017) at 3.4.
4 See: Canada (Commissioner of Competition) v. Premier Career Management Group Corp., [2010]
4 F.C.R. 413 (F.C.A.) at pp. 439-440.

2

 The CRTC is best-placed to perform this inquiry, as it is the primary regulator of all
these telecommunications and broadcasting distribution services and has recently
introduced many conditions on the offering of such services in the name of consumer
protection and the promotion of competition, namely in the Wireless Code and the
Television Service Provider Code.
While some may argue that such alleged practices would best be dealt with by the
Competition Bureau under the misleading advertising provisions of the Competition Act,
PIAC disagrees: the CRTC has a specific statutory power to inquire into matters such as
the fairness of communications sales practices, under s. 48 of the Telecommunications Act
and under s. 12 and 20 of the Broadcasting Act. The CRTC is the only agency that can
look at the situation holistically and is best placed to set retail conditions of service and
conditions of licence on telecommunications and broadcasting providers.
A Commission inquiry also can be launched publicly, unlike a Competition Bureau
investigation and can include public input and input from the companies and other
interested parties. Public confidence in the integrity of Canada’s communications service
providers is essential to the proper functioning of these markets, to consumer trust and to
consumer protection. PIAC notes that similar allegations, in the banking industry, 5 have
triggered an inquiry into bank sales practices by the Financial Consumer Agency of
Canada and a report on those practices is expected shortly. 6
In closing, PIAC believes that a public inquiry by the Commission into these sales
practices may be the most expeditious, effective and transparent way for the Commission
to ensure future confidence in the sales and marketing of communications services to
Canadians. We look forward to your reply to our request.

Yours truly,

John Lawford
Executive Director and General Counsel
jlawford@piac.ca

5

See: “'I will do anything I can to make my goal': TD teller says customers pay price for 'unrealistic'
sales targets” by Erica Johnson, CBC News Posted: Mar 06, 2017 2:00 AM PT  Last Updated: Mar
06, 2017 6:19 AM PT. Online: http://www.cbc.ca/news/canada/british-columbia/td-tellers-desperateto-meet-increasing-sales-goals-1.4006743
6
See: “Federal consumer agency delays report on Canadian banks' sales practices,” The Canadian
Press, Posted: Dec 29, 2017 4:15 PM ET  Last Updated: Dec 29, 2017 4:18 PM ET. Online:
http://www.cbc.ca/news/business/consumer-agency-bank-sales-practices-report-1.4467890

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