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Afin de rencontrer certaines des exigences de cette loi, les procès-verbaux du Conseil seront dorénavant bilingues en ce qui a trait à la page couverture, la liste des membres et du personnel du CRTC participant à l'audience et la table des matières.
Toutefois, la publication susmentionnée est un compte rendu textuel des délibérations et, en tant que tel, est transcrite dans l'une ou l'autre des deux langues officielles, compte tenu de la langue utilisée par le participant à l'audience.
TRANSCRIPT OF PROCEEDINGS BEFORE
THE CANADIAN RADIO‑TELEVISION AND
TELECOMMUNICATIONS
COMMISSION
TRANSCRIPTION DES AUDIENCES DEVANT
LE CONSEIL DE LA RADIODIFFUSION
ET DES TÉLÉCOMMUNICATIONS CANADIENNES
SUBJECT / SUJET:
Proceeding to consider the organization and mandate of the
Commissioner for Complaints for Telecommunications Services /
Instance portant sur l'examen de la structure
et du mandat
du Commissaire des plaintes relativement aux
services
de télécommunications
HELD AT:
TENUE À:
Conference Centre
Centre de conférences
Outaouais Room
Salle Outaouais
140 Promenade du Portage
140, Promenade du Portage
Gatineau, Quebec
Gatineau (Québec)
November 14, 2007
Le 14 novembre 2007
Transcripts
In order to meet the requirements of the Official Languages
Act, transcripts of proceedings before the Commission will be
bilingual as to their covers, the listing of the CRTC members
and staff attending the public hearings, and the Table of
Contents.
However, the aforementioned publication is the recorded
verbatim transcript and, as such, is taped and transcribed in
either of the official languages, depending on the language
spoken by the participant at the public hearing.
Transcription
Afin de rencontrer les exigences de la Loi sur
les langues
officielles, les procès‑verbaux pour le Conseil
seront
bilingues en ce qui a trait à la page
couverture, la liste des
membres et du personnel du CRTC participant à
l'audience
publique ainsi que la table des
matières.
Toutefois, la publication susmentionnée est un
compte rendu
textuel des délibérations et, en tant que tel,
est enregistrée
et transcrite dans l'une ou l'autre des deux
langues
officielles, compte tenu de la langue utilisée
par le
participant à l'audience
publique.
Canadian Radio‑television and
Telecommunications Commission
Conseil de la radiodiffusion et des
télécommunications canadiennes
Transcript / Transcription
Proceeding to consider the organization and mandate of the
Commissioner for Complaints for Telecommunications Services /
Instance portant sur l'examen de la structure
et du mandat
du Commissaire des plaintes relativement aux
services
de télécommunications
BEFORE / DEVANT:
Konrad von Finckenstein
Chairperson / Président
Len Katz
Commissioner / Conseiller
Michel Morin
Commissioner / Conseiller
ALSO PRESENT / AUSSI
PRÉSENTS:
Chantal Boulet Secretary / Secrétaire
Philippe Kent Staff Team Leader /
Chef d'équipe du
personnel
Lori Pope
Legal Counsel /
Anthony McIntyre
Conseillers juridiques
HELD AT:
TENUE À:
Conference Centre
Centre de conférences
Outaouais Room
Salle Outaouais
140 Promenade du Portage
140, Promenade du Portage
Gatineau, Quebec
Gatineau (Québec)
November 14, 2007
Le 14 novembre 2007
- iv
-
TABLE DES MATIÈRES / TABLE OF CONTENTS
PAGE / PARA
PRESENTATION BY / PRÉSENTATION PAR:
CCTS Members 5 / 29
Interim CCTS Commissioner McKendry 21 / 117
CIPPIC 147 / 755
Canadian Broadcast Standards Council 185 / 945
Consumers Council of Canada and the 214 / 1091
National Anti-Povery Organization
Canadian Cable Systems Alliance 242 / 1213
- v -
EXHIBITS / PIÈCES JUSTIFICATIVES
No. PAGE / PARA
CRTC-1 Chart representing the 84 / 414
nomination process
Gatineau, Quebec / Gatineau, Québec
‑‑‑ Upon commencing on Wednesday, November 14,
2007
at 0935 / L'audience débute le mercredi
14
novembre 2007 à
0935
LISTNUM 1 \l 11
THE CHAIRPERSON: Okay,
Madame Boulet.
LISTNUM 1 \l 12
LA SECRÉTAIRE : Bonjour, Monsieur le Président. Bonjour à tous.
LISTNUM
1 \l 13
Mr. Chairman, did you want to proceed with your remarks before I start
with mine?
LISTNUM
1 \l 14
THE CHAIRPERSON: I am
supposed to have opening remarks but I can't find them right
now.
LISTNUM
1 \l 15
Basically, this is a hearing of the CCTS, as you know. By order in council the Minister asked
the industry to set it up and the industry has responded and the hearing here is
now to verify and see whether what you have put together actually meets the
requirements of the Commission.
LISTNUM
1 \l 16
I am assisted today by Len Katz, the Vice‑President Telecom, and Michel
Morin, National Commissioner.
LISTNUM
1 \l 17
Really, this hearing will focus on the following matter, whether
membership in the consumer industry should be mandatory for all
telecommunication service providers, whether the consumer industry's proposed
government sector ensures its independence from the telecommunications industry
and whether the consumer agency's proposed mandate is
appropriate.
LISTNUM
1 \l 18
That is really all I have to say.
LISTNUM
1 \l 19
Madame Boulet, I turn it over to you.
LISTNUM 1 \l 110
LA SECRÉTAIRE : Merci, Monsieur le Président.
LISTNUM
1 \l 111
Bonjour à tous.
LISTNUM
1 \l 112
First, I would ask when you are in the hearing room to please turn off
your BlackBerrys and your cell phones.
We would appreciate your cooperation throughout this
hearing.
LISTNUM
1 \l 113
Please note that the Commission members may ask questions in either
English or French. You can obtain
interpretation receivers from the commissionaire sitting at the entrance of the
conference centre.
LISTNUM 1 \l 114
Le service d'interprétation simultanée est disponible durant cette
audience. L'interprétation anglaise
se trouve au canal 1, et l'interprétation française au canal
2.
LISTNUM
1 \l 115
We expect the hearing to be completed within the next two days. We will begin at 9:30 again tomorrow
morning and adjourn each afternoon at approximately 4:30. We will take an hour for lunch and a
break in the morning and in the afternoon.
LISTNUM
1 \l 116
All submissions heard at this public hearing will be transcribed and will
form part of the public record of this proceeding.
LISTNUM
1 \l 117
Please note that the full transcript of this hearing will be made
available on the Commission's website shortly after the conclusion of the
hearing.
LISTNUM
1 \l 118
Anyone wishing to purchase a copy of the transcript may speak to the
court reporter or the company Mediacopy.
LISTNUM 1 \l 119
Pendant toute la durée de l'audience, vous pourrez consulter les
documents qui font partie du dossier public pour cette consultation dans la
salle d'examen qui se trouve dans la Salle Papineau, à l'extérieur de la salle
d'audience, à votre droite.
LISTNUM
1 \l 120
Any parties wishing to apply for an award of costs should file a request
on or before January 7th, 2008, copying all other parties, and parties should
reply by January 14, 2008. In doing
so, parties are encouraged to identify the specific amount of costs for which
they wish to apply and to file with the Commission all information necessary for
the Commission to fix costs.
LISTNUM
1 \l 121
We will now proceed with the presentations in the order of appearance set
out in Schedule A of the letter dated October 26 on the organization and conduct
of this consultation.
LISTNUM
1 \l 122
Please note that due to unforeseen circumstances ARCH Disability Law
Centre will make their presentation via videoconference at the end of the day
today.
LISTNUM
1 \l 123
Copies of the revised order of appearance are available at the back of
the room and the information is also posted on our
website.
LISTNUM
1 \l 124
Each party will be granted 20 minutes for their presentation. Questions from the Commission will
follow the presentation.
LISTNUM
1 \l 125
Parties are reminded that copies of their oral presentation are being
provided for convenience only and do not form part of the public record of this
proceeding.
LISTNUM
1 \l 126
I would now invite the representative of the CCTS Members to make their
presentation.
LISTNUM
1 \l 127
Please introduce yourself for the record and then you will have 20
minutes for your presentation.
LISTNUM
1 \l 128
I believe, Mr. Bibic, you will be starting the presentation. Please go
ahead.
PRESENTATION /
PRÉSENTATION
LISTNUM 1 \l 129
M. BIBIC : Bonjour, Monsieur le Président,
conseillers.
LISTNUM 1 \l 130
Je m'appelle Mirko Bibic, et je suis le chef des Affaires réglementaires
chez Bell Canada.
LISTNUM 1 \l 131
Mes collègues et moi représentons les fournisseurs de services de
télécommunication membres du CPRST, Commissaire des plaintes relativement aux
services de télécommunications.
LISTNUM 1 \l 132
Nous sommes très heureux de pouvoir vous parler du service de règlement
des plaintes que nous avons créé ensemble en réponse au décret du 4 avril
2007.
LISTNUM 1 \l 133
Après avoir présenté les membres de notre panel et formulé des
observations d'ordre général sur les exigences du décret, je passerai la parole
à Dennis Béland de Quebecor Media qui discutera de certains enjeux spécifiques
de cette instance.
LISTNUM
1 \l 134
With me this morning, as mentioned, Dennis Béland, Director, Regulatory
Affairs, at the extreme right, for Quebecor Media.
LISTNUM
1 \l 135
To my right, I have Bill Abbott, Senior Counsel, Regulatory Affairs for
Bell Canada.
LISTNUM
1 \l 136
To my left, Willie Grieve, Vice‑President, Telecom Policy and Regulatory
Affairs for TELUS.
LISTNUM
1 \l 137
To Willie's left, Craig McTaggart, Director, Regulatory Affairs,
TELUS.
LISTNUM
1 \l 138
And to the extreme left, Jennifer Crowe, Counsel, Regulatory Affairs for
MTS Allstream.
LISTNUM
1 \l 139
Our colleague Joe Parent from Vonage Canada had previously been
identified as a member of our representative panel but was unfortunately unable
to join us today.
LISTNUM
1 \l 140
Seated in the row behind me, we have David McKendry, Interim
Commissioner, CCTS.
LISTNUM
1 \l 141
To David's right, we have Peter Paul, a Bell Canada employee seconded to
CCTS as its Interim Executive Director until a permanent commissioner is
appointed.
LISTNUM
1 \l 142
And to David's left, we have Scott Fletcher of Gowling Lafleur Henderson,
Counsel to CCTS.
LISTNUM
1 \l 143
Mr. McKendry is not part of the Members' panel per se but rather is here
to speak to the current operations of CCTS and also to share his experience as
the former Ombudsman for Long Distance Telecommunications
Services.
LISTNUM
1 \l 144
While Mr. McKendry functions independently of the Members in his role as
Interim Commissioner, we felt it would be most efficient if he were to make
himself available to the Commission for questioning at the same time as this
panel.
LISTNUM
1 \l 145
Mr. Paul and Mr. Fletcher are also not formally part of the Members'
panel but rather are here to support Mr. McKendry and the rest of us as
necessary.
LISTNUM 1 \l 146
Mes collègues et moi, nous présentons devant vous, au nom du collectif
des Membres du CPRST.
LISTNUM 1 \l 147
Le nombre d'entreprises membres est récemment passé à 13, car
NorthwestTel et Télébec ont récemment accepté de se joindre à Bell Aliant, Bell
Canada, Bragg Communications, Cogeco, MTS Allstream, Rogers, SaskTel, TELUS,
Vidéotron, Virgin Mobile Canada et Vonage Canada.
LISTNUM 1 \l 148
Nous sommes extrêmement fiers de cette réalisation car nous avons créé le
CPRST à partir de rien, en moins de cinq mois, en réponse à la demande que la
Gouverneur en conseil a faite à l'industrie de créer un organisme indépendant
qui aurait le mandat de régler les plaintes faites par les particuliers et les
petites entreprises de détail. De
l'avis des Membres, le CPRST respecte toutes les exigences du
décret.
LISTNUM
1 \l 149
Mr. Chairman, I want to spend a moment on the order in council in itself
and the kind of body that it requires.
LISTNUM
1 \l 150
Most obviously, the Members note that the primary requirement of the OIC
is for the Commission to make a report once per year regarding complaints that
it receives from individual and small business retail customers regarding
services provided by TSPs until it approves a body established by
industry.
LISTNUM
1 \l 151
In the preamble clauses, the Governor in council describes the attributes
of an independent industry‑created complaints resolution body that was viewed as
an integral component of a deregulated telecom market.
LISTNUM
1 \l 152
The link between the preamble and the operative clause in the OIC is that
the Commission is to continue to make reports until such time as a consumer
agency has been established by industry and approved by this
Commission.
LISTNUM
1 \l 153
The task facing the Commission in this proceeding is to therefore
determine whether to approve the CCTS' structure and mandate and consequently
not to make any such reports.
LISTNUM
1 \l 154
In the Members' view, the OIC sets out the government's expectation that
the industry will establish and fund an independent dispute resolution
mechanism. It did not dictate the
specific characteristics of the dispute resolution mechanism nor did it direct
the Commission to do so or to micromanage its attributes and
operations.
LISTNUM
1 \l 155
Consistent with the Governor in council's view that the Commission should
rely on market forces to the maximum extent feasible as the means of achieving
the Telecom Policy objectives and that when relying on regulation the Commission
should use measures that are efficient and proportionate to their purpose and
that interfere with the operation of competitive market forces to the minimum
extent necessary, the Governor in council entrusted the task of defining the
features of the dispute resolution mechanism to the
industry.
LISTNUM
1 \l 156
Some parties appear to have misconstrued the nature of the proceeding and
offer their views as to the ideal design of a comprehensive self‑regulatory body
of a kind that could only be created or mandated by statute. The OIC describes a more focused
industry‑established body and that is what we have
created.
LISTNUM
1 \l 157
It is important to start from the understanding that the OIC does not
establish a statutory body, regulator or policy‑maker. Rather, it calls for an independent
complaints‑resolution body.
LISTNUM
1 \l 158
The Governor in council's reference to deregulated telecom markets is
also significant. It highlights the
fact that the services in question are forborne services already determined by
the Commission to be subject to competitive forces that are sufficient to
protect the interests of users.
LISTNUM
1 \l 159
In the Members' view, the Governor in council conceived of this service
as part of a competitive marketplace, not a substitute for
it.
LISTNUM
1 \l 160
The CCTS is a valuable new avenue of recourse for consumers and small
businesses with respect to unresolved complaints. Funded entirely by the industry and
operated without charge to complainants, it has been designed to be independent,
impartial, accessible and an efficient alternative to the courts for individuals
and small business customers.
LISTNUM
1 \l 161
It is emphatically not a substitute for the courts nor for the operation
of market forces which will continue to protect users.
LISTNUM
1 \l 162
Under the mechanism designed by the Members, if attempts to resolve a
complaint through a direct communication between a complainant and a TSP have
proven unsuccessful, then the CCTS is available to facilitate resolution of the
complaint.
LISTNUM
1 \l 163
If the Commissioner is not successful in bringing the parties to an
agreed upon outcome, then the Commissioner has been empowered, first, to
recommend a solution to the complaint.
LISTNUM
1 \l 164
If the parties are unable to agree regarding the recommendation, the
Members have also given the Commissioner the ability to render a decision that
is binding on the TSP in question if the complainant accepts
it.
LISTNUM
1 \l 165
TSP Members agree as a condition of membership to abide by such decisions
from which they have no right of appeal and which are made
public.
LISTNUM 1 \l 166
Je demanderais maintenant à Dennis Béland de parler de certains enjeux
précis qui, de l'avis du Conseil, lui serviront à déterminer si la structure et
le mandat du CPRST respectent les exigences du décret.
LISTNUM 1 \l 167
Dennis.
LISTNUM 1 \l 168
M. BÉLAND : Merci, Mirko.
LISTNUM 1 \l 169
Dans une lettre datée du 17 octobre 2007, le personnel du Conseil a
demandé aux parties de structurer leurs soumissions selon certaines voies. C'est ce que je vais faire, en offrant
la position des Membres sur plusieurs des enjeux que le personnel a
mentionnés.
LISTNUM 1 \l 170
D'abord, les Membres.
LISTNUM 1 \l 171
Comme les Membres l'ont indiqué dans leurs commentaires écrits du 1er
octobre 2007, nous ne croyons pas qu'il faille imposer l'adhésion au CPRST. Même si nous voyons des avantages à ce
que la totalité ou la quasi‑totalité des FST en fasse partie, les Membres
croient que dans un marché concurrentiel, la décision de se joindre au CPRST
devrait revenir à chaque FST.
LISTNUM 1 \l 172
Les Membres ont estimé qu'il était intéressant pour eux d'adhérer au
CPRST et de donner à leurs clients particuliers et petites entreprises de détail
l'accès au service de règlement des plaintes qu'il fourni. Certains FST peuvent avoir leur raison
de ne pas devenir membre, et les Membres considèrent que cette différence dans
les offres des fournisseurs est une des marques d'un marché
concurrentiel.
LISTNUM 1 \l 173
Les Membres font observer qu'ils sont 13 des plus grands FST au Canada,
et que, ensemble, ils desservent la vaste majorité des clients de résidence et
des petites entreprises de détail au pays.
Par conséquent, les intérêts de la plupart des clients sont déjà protégés
sans qu'il soit nécessaire d'imposer l'adhésion au CPRST.
LISTNUM 1 \l 174
Le financement.
LISTNUM 1 \l 175
Concernant la structure de financement, les Membres ont pris soin de
créer un modèle qui pourrait accommoder un nombre indéterminé de FST de toute
taille.
LISTNUM 1 \l 176
Les Membres comprennent que les groupes qui représentent les petits FST
se préoccupent du fait que les frais d'adhésion non‑récurrents proposés seraient
trop élevés pour de très petits fournisseurs de services.
LISTNUM 1 \l 177
Les Membres ont l'intention de consulter ces groupes en vue d'établir des
catégories à frais moins élevés pour encourage l'adhésion des petits
fournisseurs.
LISTNUM 1 \l 178
Les Membres fourniront les détails de cette nouvelle structure de frais
dans leur réplique écrite du 23 novembre 2007, mais ils envisagent de ramener
les frais non‑récurrents les moins élevés à $1 000.
LISTNUM
1 \l 179
Next, governance structure.
The working group that put together the CCTS made the CCTS's independence
from the industry their guiding principle.
LISTNUM
1 \l 180
In their comments to the Commission, some parties have alleged that the
CCTS lacks the independence required by the Order in Council. These comments, however, are focused
almost entirely upon the composition of the CCTS's board of directors and not on
the CCTS's complaints resolution procedures.
LISTNUM
1 \l 181
In the members' view, those comments are misguided. The raison d'être of the CCTS is the
resolution of complaints, which will be performed by a commissioner who is
completely independent of the industry and of any other groups or
interests. It is useful to recall
that the directors are barred from having any involvement in or any exposure
whatsoever to the resolution of individual complaints.
LISTNUM
1 \l 182
Industry directors constitute a minority on the board and can thus be
outvoted by the independent directors on most matters that come before the
board.
LISTNUM
1 \l 183
Further, detailed oversight of a number of matters has been delegated to
a committee comprised solely of the independent directors. I want to emphasize that the provisional
board plays no role in the selection of the initial independent
directors.
LISTNUM
1 \l 184
The CCTS's by‑laws provide that the three initial independent directors
are to be recruited by an independent ad hoc nominating committee operating at
arm's length from the provisional board.
The ad hoc nominating committee is comprised of three highly respected
Canadians with no ties to the telecommunications industry: Denis Desautels, Al Hatton and David
Zussman.
LISTNUM
1 \l 185
More information about this committee and its work can be found in a
letter filed by the members yesterday.
LISTNUM
1 \l 186
The provisional board must appoint the three candidates whom the
nominating committee recommends. It
has no discretion in the matter.
Thereafter, the group of independent directors will be
self‑perpetuating. The provisional
board will step down as soon as possible after the CCTS is approved and its
permanent board is in place.
LISTNUM
1 \l 187
To ensure accountability in relation to funding, the members have, in a
completely transparent way, reserved certain protections for those entities that
fund the CCTS with respect to the narrow range of fundamental corporal and
financial matters. As an
independent organization that the members by definition cannot control, yet must
fund, it is entirely reasonable for the CCTS's governance structure to contain
such protections.
LISTNUM
1 \l 188
The measures contained in the CCTS's constating documents that ensure
financial and management discipline on the part of the CCTS are not inconsistent
with the independence of the commissioner in all matters related to complaint
resolution.
LISTNUM
1 \l 189
Mandate. Turning to the
CCTS's mandate, considerable effort was devoted by the members to define the
services that are in and out of scope.
In setting out the CCTS's mandate, the members focused on the Order in
Council's request for a complaint resolution mechanism in relation to forborne
retail telecommunications services.
Until the Commission forbears, it should continue to handle the
adjudication of complaints relating to regulated services and conditions of
service.
LISTNUM
1 \l 190
Similarly, only retail services are in scope, and complaints by TSPs
against other TSPs should not be entertained.
LISTNUM
1 \l 191
Third, the service in question must be a telecommunications
service.
LISTNUM
1 \l 192
Finally, complaints relating to the sale or provision of equipment are
not in the scope.
LISTNUM 1 \l 193
Le Conseil a déjà demandé aux Membres et aux autres parties s'ils étaient
d'avis que le CPRST devrait traiter les plaintes liées aux services réglementés
et aux règles sur les télécommunications non
sollicitées.
LISTNUM 1 \l 194
Pour ce qui touche le traitement par le CPRST des plaintes liées aux
services réglementés, au‑delà du risque évident de chevauchement des
compétences, les Membres considèrent qu'en élargissant le mandat du CPRST, on
dépasserait les intentions du décret.
LISTNUM 1 \l 195
Quant aux plaintes liées aux règles sur les télécommunications non
sollicitées ou le télémarketing, les Membres font observer qu'aucune partie n'a
appuyé l'idée que le CPRST fasse enquête sur ce type de
plainte.
LISTNUM 1 \l 196
Franchement, les Membres ne comprennent pas comment les plaintes
concernant le télémarketing pourraient être traitées par une agence du secteur
des télécommunications, ni pourquoi elles devraient l'être. Ce sont des secteurs entièrement
différents, et les entreprises qui verseraient des frais ne seraient pas du tout
les mêmes. Une agence hybride
serait très difficile à concevoir, surtout à cette étape de l'évolution du
CPRST.
LISTNUM 1 \l 197
Je termine ici, et je passerai la parole à Mirko pour la
conclusion.
LISTNUM
1 \l 198
MR. BIBIC: Thank you,
Dennis.
LISTNUM
1 \l 199
The members would like to conclude by reiterating their view that the
issue before the Commission in this proceeding is whether the CCTS meets the
requirements of the Order in Council.
We believe it does, and that the Commission should approve its structure
and mandate.
LISTNUM
1 \l 1100
It is our view that modifications should only be required to the extent
aspects of the CCTS do not conform with the requirements of the OIC. The members took great care to design
the CCTS to meet the Governor in Council's explicit expectations and conducted
consultations with stakeholders along the way to make sure they had the complete
picture.
LISTNUM
1 \l 1101
Mr. Chairman, Commissioners, it is frankly remarkable that 13 of the
country's largest TSPs have been able to come together so quickly and amicably
to create something powerful for their customers. As I mentioned at the start, the members
are proud of the hard work put in by our employees and team members in creating
the CCTS in a very short time frame and doing so openly, in consultation with
many TSPs and other stakeholders.
LISTNUM
1 \l 1102
The benefits of this approach have been obvious. We now have up to 13
members.
LISTNUM
1 \l 1103
Consultations resulted in accommodating several suggestions from consumer
groups and the CRTC was kept apprised of developments each step of the
way.
LISTNUM
1 \l 1104
The members urge the Commission to let the CCTS continue to develop as a
voluntary body without responsibility for complaints related to regulated
services or telemarketing. In the
members' view, that model is the one that is most consistent with the
requirement and the policy direction requiring the Commission to rely on market
forces to the maximum extent feasible.
LISTNUM
1 \l 1105
Thank you for this opportunity to present our
position.
LISTNUM
1 \l 1106
Before we move to answering questions, I would like to ask CCTS's interim
Commissioner, David McKendry, to provide a very brief report on how the CCTS's
first three months of operations have gone.
LISTNUM
1 \l 1107
MR. LAWFORD: Mr. Chairman, I
would like to object. It is John
Lawford from the Consumer Groups.
LISTNUM
1 \l 1108
We just note that the interim Commissioner is not a party to this
proceeding, and we had no advance notice that he would be making a statement
here today.
LISTNUM
1 \l 1109
You can certainly ask him questions, if you wish, and you can certainly
let him make a statement if you wish, but that is our
objection.
LISTNUM
1 \l 1110
THE CHAIRPERSON: I asked for
Mr. McKendry to be here because I want to hear from him firsthand how the CCTS
operation is running so far and what his experience has
been.
LISTNUM
1 \l 1111
As you know, he was Commissioner and long distance ombudsman, so it is
very relevant experience, and I think it will benefit all parties to
understand. That is what he is here
for, to tell us what his experience has been so far.
LISTNUM
1 \l 1112
We have something provisionally operational. I want to know how it functions. This would be to your benefit to hear
this. You will hear his answers and
questions too, and to the extent that you want, you can obviously use it in your
comments to us.
LISTNUM
1 \l 1113
MR. LAWFORD: I will just
note that the questions that the panel could ask Mr. McKendry could be exactly
what he has in his statement here, and in effect he gets to restate
twice.
LISTNUM
1 \l 1114
Again, we weren't advised that he was going to be making a
statement. That is my only
objection. Thank
you.
LISTNUM
1 \l 1115
THE CHAIRPERSON: I hear
you. I think it will be to the
benefit of everybody that we hear from Mr. McKendry before we question
him.
LISTNUM
1 \l 1116
Mr. McKendry, would you please go ahead?
PRESENTATION /
PRÉSENTATION
LISTNUM
1 \l 1117
INTERIM CCTS COMMISSIONER McKENDRY:
Good morning, Mr. Chairman and Commissioners. I have the pleasure to be here today as
the CCTS interim Commissioner, a position that I have held since July 23rd,
2007.
LISTNUM
1 \l 1118
I will hold this position until the first permanent Commissioner is
appointed by the full independent board when it takes
office.
LISTNUM
1 \l 1119
In addition to being a former CRTC Commissioner, I also previously held
the position of ombudsman for telecommunications services. This industry self‑regulatory position
was voluntarily created by new entrant long distance companies to address the
slamming problem experienced in the early days of long distance
competition.
LISTNUM
1 \l 1120
I was also the founding consumer representative on the former Cable
Television Standards Council, a self‑regulatory body created by the cable
television industry to deal with consumer complaints. As an aside, Mr. Chairman, when this
three‑person council was created several years ago, the founding industry member
was Elizabeth Duncan, who is now one of your colleagues at the
Commission.
LISTNUM
1 \l 1121
I am here today to answer any questions the Commission may have about
CCTS's current operations. In that
regard, I am pleased to report the launch of CCTS has been very successful. We have handled well over 1,000 contacts
since July 23rd. Virtually all of
the complaints that we have dealt with have been resolved. Eighteen complaints have now reached the
investigation stage and will require recommendations on my part. However, I expect that some of these
complaints will be resolved amicably prior to my needing to issue a
recommendation.
LISTNUM
1 \l 1122
No complaints have reached the binding decision stage yet, which is not
surprising, considering the short time that CCTS has been in operation. Based on my experience, I expect that
industry members will prefer to resolve complaints before they reach the final
binding stage. In fact, in my time
as the long distance ombudsman, I never had to issue a single formal
decision.
LISTNUM
1 \l 1123
Of course, the scope of CCTS's mandate is broader, but I find that a
phone call with the parties involved goes a long way towards resolving
complaints.
LISTNUM
1 \l 1124
CCTS staff tell me that we have been receiving very positive feedback in
the service. Our staff is trained
to answer most inquiries that individual and small business customers may have
with regards to their dispute resolution rights. Consumers are happy to be able to talk
to a live person when they call, and if CCTS cannot deal with their complaint,
CCTS staff generally try to refer the complainant to another agency or tribunal
that might be able to help.
LISTNUM
1 \l 1125
Accessibility of our procedures is of great concern to me and CCTS's
members. I have read with interest
the submissions of ARCH and the Canadian Association of the Deaf. We have already taken steps such as
ensuring that our website is WC3 compliant, but there is more to do and I intend
to consult with ARCH and the Canadian Association of the Deaf and other groups
to ensure the accessibility of CCTS to all who may need
it.
LISTNUM
1 \l 1126
I look forward to your questions about the CCTS's operations and my
experience as interim Commissioner.
Let me now turn it back to Mr. Bibic.
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1 \l 1127
MR. BIBIC: Mr. Chairman, we
are available for questions.
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1 \l 1128
THE CHAIRPERSON: Thank
you.
LISTNUM
1 \l 1129
Mr. Bibic, I see you filed yesterday an extra letter of clarification
regarding the constating documents.
Can you walk us through those changes? What are those quantificational changes
that you filed yesterday?
LISTNUM
1 \l 1130
MR. BIBIC: Certainly. I will turn it over to Craig McTaggart
to walk you through that letter, Mr. Chairman.
LISTNUM
1 \l 1131
MR. McTAGGART: It is my
pleasure, Mr. Chairman.
LISTNUM
1 \l 1132
This letter explains certain changes, in fact all of the changes that
have been made to the constating documents of the CCTS since the original
versions were filed with the Commission on the 23rd of July. I will just go through them one by
one. They are quite minor
changes.
LISTNUM
1 \l 1133
The first one is a change to the French name of the corporation. As the letter says, it was brought to
our attention early on and, indeed, Commission staff were perhaps the most
helpful with regards to this point.
We decided that it would be in the best interest of the company to change
the name in French, and we did that quite promptly and received supplementary
letters patent on August 3.
LISTNUM
1 \l 1134
The second change was to correct an error in the by‑law that I think
parties will recognize was inconsistent with the rest of the materials filed on
the 23rd of July. In the section of
the by‑law relating to the eligibility of government employees or, more
accurately, those who have recently be government employees to serve as
independent directors, the three‑year, what we call cooling off period was
incorrectly indicated to apply to recent government employees. There is no three‑year cooling off
period for those who have recently served as a government employee that would
otherwise make them ineligible to serve as an independent
director.
LISTNUM
1 \l 1135
The next change relates to the timing of the constituting of the full
board of directors. Parties will
understand that in the by‑law, the members made specific provision for the
ending of the life of the provisional board and the constituting of the full
independent board within 90 days of the start of the CCTS. When the public notice was issued, we
felt that it would be prudent to stop the process of populating the board, given
the uncertainty with respect to its final form. So, a technical amendment was required
to the by‑law to simply move that 90 day time period to 90 days out from the
Commission's decision in the proceeding, instead of 90 days from the start of
the CCTS.
LISTNUM
1 \l 1136
The next changes relate to the membership agreement. So, a separate document. The first one described as modification
to forborne revenue reporting mechanism is really kind of an internal funding
matter of the members, but, again, the membership provided a particular
mechanism by which the cost sharing mechanism process would work. It did not prove possible to implement
the mechanism that we originally planned.
We had to come up with an alternative. That alternative was agreed to by all
the members and certain changes with required to the membership
agreement.
LISTNUM
1 \l 1137
I can go into those in detail later if there is interest, but I don't
expect that I need to right now.
LISTNUM
1 \l 1138
The next change is described as clarification regarding single start‑up
cost fee for affiliates, simply clarifying that corporations that are affiliates
of each other need not pay a separate start‑up cost fee every time one
joins. Again, this change was
consented to by the members.
LISTNUM
1 \l 1139
The next clarification relates to the effective date of new
membership. This simply clarifies
that a member becomes a member of the CCTS upon executing the membership
agreement, clarifying a clause that was originally in the membership
agreement. It made it unclear
whether membership was effective immediately or on the first day of the
following quarter. That actually
applies to the funding obligation, not the membership currency. So, again, just a bit of an internal
clarification matter for the members.
LISTNUM
1 \l 1140
The final point, and this is a change that was just made last week
because the potential inconsistency in the documents only came to our attention
last week. This is the one entitled
"Clarification regarding publication of decisions rendered by
Commissioner." Despite the
documents having been reviewed by many people over the course of several months,
one of our members pointed out that by operation of section 15.3 of the
procedural code, decisions of two types would be made
public.
LISTNUM
1 \l 1141
It has been the intention of the members since early summer when, on the
recommendation from the consumer groups who we met with in June, we made
provision for final decisions of the Commissioner to be made public. In the procedural code, it is provided
that recommendations of the Commissioner that are accepted by the parties become
decisions. That was put in place
more with an eye to enforcement of the decision against the member than with
respect to publication. Frankly, we
didn't think about how that might operate to suggest that accepted
recommendations will become public as well.
LISTNUM
1 \l 1142
That was not the intention of the members and that is inconsistent with
the materials that the members have provided to date.
LISTNUM
1 \l 1143
So, this last change merely indicates by way of a change to section 15.3
of the procedural code that only decisions that are rendered by the Commissioner
following an unsuccessful recommendation stage, only those decisions would be
made public, not decisions that only became decisions by operation of the
procedural code, but really were accepted recommendations.
LISTNUM
1 \l 1144
THE CHAIRPERSON: Run that by
me again.
LISTNUM
1 \l 1145
MR. McTAGGART: Remember that
at the recommendation stage the Commissioner is still trying to facilitate a
solution among the parties that they can both agree to. If either party rejects that
recommendation, then the matter moves to the final binding decision stage. But if both of the parties accept it,
that resolves the matter; that ends the matter, but by operation of the
procedural code, that accepted recommendation becomes a
decision.
LISTNUM
1 \l 1146
As I say, that was done mainly so that it could be enforced against the
member like any other decision. It
wasn't done with the purpose of making that accepted recommendation public. The intention was only that the final
rendered formal decisions of the Commissioner would be made
public.
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1 \l 1147
THE CHAIRPERSON: In short,
only the decisions that are imposed by the Commissioner will be made
public?
LISTNUM
1 \l 1148
MR. McTAGGART: That is
right, and that is exactly the change that was made in that last
clause.
LISTNUM
1 \l 1149
THE CHAIRPERSON: Thank
you.
LISTNUM
1 \l 1150
First of all, Mr. Bibic and other members of the panel, I am delighted
that we have a CCTS and it is up and running.
LISTNUM
1 \l 1151
As you know, at the telecom summit, I challenged industry to put it up
and have it operational before the first forbearance order would become
effective, and you managed to meet that challenge and put it up and in
operation.
LISTNUM
1 \l 1152
I am delighted to hear from Mr. McKendry that it seems to be working
rather well.
LISTNUM
1 \l 1153
That being said, obviously we have to now look in detail whether this
temporary creature meets all the requirements of the Order in Council and is the
best way to resolve these issues.
LISTNUM
1 \l 1154
I am going to ask you some questions on governments and remedies; my
colleague, Len Katz, on membership and operation; and Michel Morin on mandate
and delegation. They don't fall
that neatly into categories and there will be certain overlap, et
cetera.
LISTNUM
1 \l 1155
Let's start off with membership.
Len.
LISTNUM
1 \l 1156
COMMISSIONER KATZ: Thank
you, Mr. Chairman.
LISTNUM
1 \l 1157
Can I take the panel to their page 8 on membership, and perhaps ask them,
in the second sentence it says:
"While we can certainly see the
advantages to all or substantially all TSPs being members..." (As read)
LISTNUM
1 \l 1158
Can you cite for us what some of those advantages that you have alluded
to here would be?
LISTNUM
1 \l 1159
MR. BÉLAND: Yes. The principal advantage I guess would be
a financial one, spreading the costs.
Some of the costs of the Commissioner are fixed. Most are probably variable, but to the
extent that there are some fixed costs and you have more members, you clearly
spread those costs.
LISTNUM
1 \l 1160
COMMISSIONER KATZ: Are there
any other ones?
LISTNUM
1 \l 1161
MR. BÉLAND: Perhaps related
to visibility as well, but that is principally what we had in mind, is that
sure, we would all be happy if more and more telecommunication service providers
joined the organization, but once again, we are not of a view that that needs to
be mandated.
LISTNUM
1 \l 1162
MR. BIBIC: From our
perspective, I would harken back to my opening comments, which is it is the
design of an agency of sorts; it is a powerful avenue for consumers to resolve
their complaints and, at the end of the day, I am sure I will be speaking on
behalf of all members here, that customer service is top priority for all TSPs,
so this is another avenue to resolve complaints.
LISTNUM
1 \l 1163
From Bell Canada's part and Bell Aliant, we don't like to see bad press
about customer service and when we can't address customer concerns on a
bilateral relationship and this can provide an avenue to do that, I think that's
a positive as well.
LISTNUM
1 \l 1164
COMMISSIONER KATZ: But to
the extent that it is an avenue for customers, for some customers where the
company has joined the CCTS; it is not an avenue for other customers who do not
have availability of the CCTS because their underlying carrier has not
joined.
LISTNUM
1 \l 1165
MR. BIBIC: And I think over
time I could see the possibility that certain TSPs would seek to differentiate
their global service offerings by virtue of the fact that they are a member and
some others aren't.
LISTNUM
1 \l 1166
It is a bit difficult to answer that particular question from where we
sit, Mr. Katz, because I mean you are asking us about mandatory membership when
we voluntarily signed up to this thing and are quite willing to fund it and to
proceed with it.
LISTNUM
1 \l 1167
None of the members here are members that have refused to sign on so kind
of difficult to answer the question from the perspective of those who have
chosen not to.
LISTNUM
1 \l 1168
THE CHAIRPERSON: Surely you
can answer a conceptual question:
Why should the consumer suffer just because one of his TSPs has decided
not to become a member of CCTS? I
mean, what's the rationale?
LISTNUM
1 \l 1169
You said in your opening this should be part of a competitive
marketplace. So we have a
competitive market making sure that the consumer doesn't suffer. We have CCTS. Why should it then depend on the
voluntary joining of ‑‑ I mean, you can answer that question,
notwithstanding that you have decided to join.
LISTNUM
1 \l 1170
MR. BIBIC: I suppose I
could, Mr. Chairman. From my
perspective ‑‑ right now I am going to speak for Bell Canada and Bell
Aliant.
LISTNUM
1 \l 1171
From my perspective I don't feel very strongly about voluntary versus
mandatory. I don't think it's
necessary, but one way or the other I don't feel strongly. We are in, and if you choose to make
membership mandatory I think we are getting into questions of jurisdiction and
elegance of regulatory solutions of which I do have use,
actually.
LISTNUM
1 \l 1172
Perhaps, Willie, you do too.
LISTNUM
1 \l 1173
MR. GRIEVE: Yes, we are in
the same position. We don't really
have any objection to it being made mandatory. We just have a problem with how it would
actually be enforced ‑‑ enforced being, you know, jurisdiction and
enforcement of making such a membership mandatory would be our major
concern.
LISTNUM
1 \l 1174
And even if you pass the jurisdictional test how do you find 81 wireless
ISPs in Alberta? How do you make it
compulsory for people like every single carrier across the country ‑‑ not
carrier ‑‑ every single TSP and how do you enforce it on
TSPs?
LISTNUM
1 \l 1175
I know the Commission has asked these questions but even if you could
find every one I'm not sure how you would enforce it. I was thinking this morning, for example,
Shaw has decided not to join. I
mean, you couldn't really disconnect Shaw for not joining.
LISTNUM
1 \l 1176
COMMISSIONER KATZ: I mean,
it begs the question if someone has joined, the service provider has joined and
the underlying network provider from whom they buy services has voluntarily
opted out and a complaint comes in, I'm not sure how that small business ‑‑
that consumer can get adequate relief from the CCTS, given that they will look
at it ‑‑ they will look at the service provider and say, "Well, you bought
services from somebody else.
Unfortunately, that party is not a member here so we can't investigate
it" and the small business guy is just out.
LISTNUM
1 \l 1177
MR. BIBIC: Yes, it's a
competitive market and they have the option of switching providers or other
industry bodies like this and other industries, even in industries under the
jurisdiction of the CRTC which are voluntary.
LISTNUM
1 \l 1178
At the end of the day; again, for Bell Canada and Bell Aliant, and others
can subscribe to my view if they wish, but our principle concern is with
enforcement of mandatory membership.
The principle of making membership mandatory doesn't concern us all that
much. It's how you go about
enforcing it.
LISTNUM
1 \l 1179
Under the Telecom Act, as it is constructed today, the Commission has to
take the very inelegant regulatory solution of indirectly making Canadian
carriers responsible for the behaviour of those which are not subject to their
direct jurisdiction.
LISTNUM
1 \l 1180
And the last thing we would want from a policy and practical perspective
from our end, Bell Canada and Bell Aliant, is being forced to investigate
whether or not the multitude of TSPs that are out there, and wireless ISPs and
basic local phone service providers, are members and what to do if they are
not.
LISTNUM
1 \l 1181
Would it be encumbent on us to then file applications with the CRTC to
disconnect, for example ‑‑ just as an example ‑‑ some of these
carriers or providers who aren't members because they are not
members?
LISTNUM
1 \l 1182
I mean, those are the kinds of things that I would be very reluctant to
engage into. But the concept
doesn't disturb us.
LISTNUM
1 \l 1183
THE CHAIRPERSON: I am
unclear now. In your opening
statement you say it is voluntary.
Now, I hear you, Mr. Grieve, saying you are indifferent as to whether it
is made mandatory or not.
LISTNUM
1 \l 1184
Do the founding members have a position or not?
LISTNUM
1 \l 1185
MR. BIBIC: We can all agree
that voluntary is the best way to go and when we ‑‑ when you start asking
questions about mandatory membership I spoke on behalf of Bell Canada and Bell
Aliant and TELUS spoke on ‑‑ Willie spoke on TELUS'
behalf.
LISTNUM
1 \l 1186
THE CHAIRPERSON: Well, can I
hear from Quebecor and MTS?
LISTNUM
1 \l 1187
MR. B_LAND: Yes, I think if
we step back just a moment, you know, and I will maybe address the thought
process by which Videotron joined this organization.
LISTNUM
1 \l 1188
The major ILECs came to us at a certain point with a proposition for the
creation of the Commissioner for Complaints. We didn't consider that we had any
obligation to join this organization.
LISTNUM
1 \l 1189
We looked at the proposal.
We were interested in particular about whether it would provide in our
view concrete value to our customers, and we saw that in the proposal. It's a very tightly‑focussed
organization on the resolution of complaints. We saw that as being valuable to our
customers and we saw that also as being valuable to ourselves because we will be
able to say to our customers that they have that backup.
LISTNUM
1 \l 1190
We also looked at issues of financial accountability. We wanted to make sure that the
structure was one which would have appropriate financial controls. We wanted to focus ‑‑ we looked
very closely at the scope of the organization to ensure that it is truly a
complaints resolution organization rather than some sort of new regulatory body
that would be replacing the CRTC.
LISTNUM
1 \l 1191
So all that put together, our decision to adhere was actually relatively
easy and we adhered with enthusiasm.
LISTNUM
1 \l 1192
That being said, if other people in our own market or in other markets of
Canada choose not to adhere for their own particular reasons ‑‑ perhaps
they have doubts about the ultimate effectiveness of the organization ‑‑ we
don't see that refusal on their part to adhere as being necessarily inconsistent
with the broader context in which we are operating here.
LISTNUM
1 \l 1193
We are operating in a broader context of competition. We are dealing with services where the
Commission has foreborne from regulation because competition can serve the
interests of consumers. We are
dealing with an order in council; with a government who has issued numerous
directives in recent years, clearly focussed on a belief in the power of market
forces, on regulatory intervention that is limited and proportional to the
objectives.
LISTNUM
1 \l 1194
Ultimately, we believe once again that consumers will see value in this
organization. Service providers
that adhere to this organization will benefit from that and will gain value
themselves. But in a broader
context of a philosophy where market forces protect the interest of consumers,
we don't see any inconsistency with saying that service providers have a choice
as to whether to join the organization.
LISTNUM
1 \l 1195
COMMISSIONER KATZ: Well, let
me take this in two stages.
LISTNUM
1 \l 1196
Sorry, go ahead.
LISTNUM
1 \l 1197
MS CROWE: MTS Allstream is,
you know, of a similar opinion. We
voluntarily agreed to join the CCTS because we see a value to our customers in
doing so and having an effective and a cooperative means of dealing with
customer complaints as forebearance is rolled out.
LISTNUM
1 \l 1198
But saying that, I think it's important to realize that we have
voluntarily agreed to things that we, you know, might have more problems with if
they were mandated or if it was mandated by the Commission to join the
CCTS. There are things that we have
voluntarily agreed to in a cooperative ‑‑ to be cooperative and to create
an effective CCTS.
LISTNUM
1 \l 1199
For instance, right now the Commissioner can award monetary awards of up
to $1,000 for loss, damage or inconvenience but it's questionable whether the
CRTC would have the authority to require membership in an organization that
could impose that. There is also no
appeal right for TSPs right now from a final decision of the CCTS and that's
something we would certainly, you know, think about again if it were a mandated
organization.
LISTNUM
1 \l 1200
I just also add that one of our members who isn't here today,
SaskTel ‑‑ I can't speak for SaskTel but they are very much of the opinion
that membership should be voluntary.
I believe they just filed a letter to that effect and, you know, feel
that there are other avenues for their customers besides the
CCTS.
LISTNUM
1 \l 1201
COMMISSIONER KATZ: Can I
take this in two trenches? One is
the notion that some people who aren't members today and haven't signed up, and
I heard what you had to say. The
other is what I call the "opt out provision" for the members
themselves.
LISTNUM
1 \l 1202
Do you as a membership group feel that you absolutely need an opt out
provision so that it is voluntary and if you are not happy you can leave, or are
you comfortable with the fact that you are all there and you have no problem
with membership being mandated for you?
LISTNUM
1 \l 1203
MR. BIBIC: On the issue of
opt out, and we have all entered this in good faith to do the right thing by the
consumer and to meet the requirements of the OIC, so as I sit as here today we
certainly have no plans to exit, but we all need to recognize that the world
evolves. And I don't know how it
will evolve but it could be that down the road, some period of time down the
road, the body is no longer necessary or a particular member is dissatisfied
with the way the agency is being run, and if a group like this is still
necessary I wouldn't foreclose the possibility of any member or group of members
wishing to start another more effective one.
LISTNUM
1 \l 1204
So there are a number of reasons why parties may want to opt out but,
again, that is not in our contemplation as we sit here today before
you.
LISTNUM
1 \l 1205
COMMISSIONER KATZ: If you
were would you foresee an application to the CRTC suggesting a change in the
composition of the CCTS, or would each member just be free to come and go as
they will?
LISTNUM
1 \l 1206
MR. BIBIC: Well, the way I
see it is if membership remains voluntary and a number of members opt out down
the road and the Commission still feels that the state of the market is such
that an agency like this is required, then I think it is certainly open to the
Commission to re‑evaluate the issue of voluntary versus mandatory. So I think that's how I would see it
unfold if membership today were voluntary.
LISTNUM
1 \l 1207
If the Commission were to impose mandatory membership today and
circumstances were to change in the future, such that parties felt that it
should no longer be mandatory, then in that world I would envision a member or
group of members choosing to file an application with the CRTC saying: Look, the world has changed and this is
no longer necessary, or membership is no longer ‑‑ it's no longer necessary
to have membership mandatory.
LISTNUM
1 \l 1208
So, it depends where we start from, but I think either way we all need to
recognize that the world will undoubtedly evolve and we will all adjust
accordingly.
LISTNUM
1 \l 1209
COMMISSIONER KATZ: I guess,
you indicated early on what the views of the members are and what you are trying
to represent. One of the things the
CRTC's role is to look at for the small business and consumers as well. And obviously the direction, or the
order asked us to oversee the creation of this as well and that was post the
policy direction where the government basically indicated they wanted to see
competition sped up as well.
LISTNUM
1 \l 1210
So, I don't see them in disarray at all. Maybe what I am hearing, and maybe I am
confusing it too, but is the membership saying or the members saying that the
reason that you believe it has to be voluntary is because of the way the policy
direction has been framed and utilizing the least intrusive
avenue?
LISTNUM
1 \l 1211
MR. BIBIC: We don't think
mandatory membership would be necessarily in conflict with the policy direction,
but we also believe that voluntary membership is more in keeping with the
principles in the policy direction.
That's how I would answer that.
LISTNUM
1 \l 1212
But again, I mean, the biggest concern some of the members have is really
with how you make mandatory membership operational.
LISTNUM
1 \l 1213
MR. GRIEVE: There's one
other point that was raised by Shaw in its submission, that was, mandatory
membership brings with it mandatory funding.
LISTNUM
1 \l 1214
And in Shaw's view there's a problem, a jurisdictional problem with that
in the sense that the Commission doesn't have the authority to order someone to
make a contribution except to funding a particular body, except for the
contribution mechanism provisions of the Act.
LISTNUM
1 \l 1215
So, you know, I think it's sort of ‑‑ you might mandate membership
in an already existing body, but then you'd fall short or you may fall short on
the funding requirements.
LISTNUM
1 \l 1216
COMMISSIONER KATZ: I am not
sure I got an answer to my question.
LISTNUM
1 \l 1217
How would the membership deal with, or how would, I guess, Mr. McKendry
in his acting position deal with a complaint that was directed from a service
provider who was actually buying facilities from a third party who wasn't a
member?
LISTNUM
1 \l 1218
MR. BÉLAND: Yeah. I wanted to come back to that point in
fact because I didn't want it to stay out there without a
response.
LISTNUM
1 \l 1219
The Commissioner of Complaints' tasks are focused resolutely on the
retail contractual relationship between a service provider and the retail
customer. Whatever suppliers or
inputs the service provider may have behind that are not at all the affair of
the Commissioner.
LISTNUM
1 \l 1220
You've given one example of maybe one telecommunications service provider
using telecommunications services of another provider in an underlying sort of
capacity. Probably everyone at this
table uses those sorts of arrangements in some way or
another.
LISTNUM
1 \l 1221
You could even extend it though to equipment. Videotron, we may one day find that we
purchase lousy modems and they're causing complaints. No one, I don't think, would suggest
that our modem supplier should somehow be pulled into this process as a party to
resolving those complaints.
LISTNUM
1 \l 1222
So, the view of the members is that when the Commissioner is faced with a
particular complaint related to a particular retail service, the Commissioner
looks at the engagements effectively that the service provider has taken in the
service contract with that customer and evaluates whether the service provider
has adhered to those engagements.
LISTNUM
1 \l 1223
If the service provider has made bad choices in terms of buying faulty
T‑1s from another telecommunications service provider or buying faulty modems
from an equipment supplier or, for that matter, if Bell Canada has failed to
port a number, a telephone number to Videotron on time, that's really
Videotron's problem. In the context
of a retail/consumer complaint, it's our responsibility to deal with our
suppliers in the background.
LISTNUM
1 \l 1224
So, I don't think the concerns about underlying providers need at all
drive the notion of a mandatory membership.
LISTNUM
1 \l 1225
COMMISSIONER KATZ: Thank
you. Those are all my questions,
Mr. Chairman.
LISTNUM
1 \l 1226
THE CHAIRMAN: Mr. Bibic, you
said your biggest concern was whether the Commission has the ability to make membership
mandatory?
LISTNUM
1 \l 1227
MR. BIBIC: Well, there's a
question about jurisdiction, but the biggest concern is actually how we make it
operational.
LISTNUM
1 \l 1228
So, if the Commission were to say, yes, membership is mandatory, how does
one do that for providers who are not subject to the direct jurisdiction of the
CRTC under the Telecom Act?
LISTNUM
1 \l 1229
The way one can do that is the way it's done in other contexts, which is
to say, well, you know, those carriers who are subject to our jurisdiction have
to amend their terms of conditions of whichever service it is that they provide
to those who we don't regulate, then we get into a situation of
enforcement.
LISTNUM
1 \l 1230
So, take one of Telus' ‑‑ one of the ISPs out in Alberta, they're
small and tiny who may not be subject to your direction jurisdiction, although
they probably would be, but take another reseller, for
example.
LISTNUM
1 \l 1231
THE CHAIRMAN:
Yes.
LISTNUM
1 \l 1232
MR. BIBIC: What happens if
the reseller doesn't join? Who does
what to whom in the context of forcing mandatory membership? Is it up to us to enforce, is it up to
us to disconnect, is it up to us to file an application with you to say we will
disconnect, or is it up to the Commission to police and
enforce?
LISTNUM
1 \l 1233
I mean, that's an issue that does definitely concern
us.
LISTNUM
1 \l 1234
THE CHAIRMAN: Yes, and we
specifically asked you to comment on that and I am trying to find out ‑‑
you say you don't like the idea, but didn't we ask you specifically to say
whether it is doable and how and what would be the most efficacious way of doing
it?
LISTNUM
1 \l 1235
MR. BIBIC: Okay. Well, let's take it into two
chunks. I'll turn it over to Mr.
Grieve to talk about whether or not you can do it and perhaps I can go back at
whether or not it's a good way of doing it.
LISTNUM
1 \l 1236
THE CHAIRMAN:
Okay.
LISTNUM
1 \l 1237
MR. GRIEVE: The Commission
asked about three sections of the Act, the connection of facilities section,
section 40, whether that would be a jurisdictional basis for imposing mandatory
membership in the CCTS.
LISTNUM
1 \l 1238
And we've looked at that section a number of times, of course, over the
years and it really does deal with, on the plain reading, interconnection and
connection of facilities and you would expect that any conditions that were made
would have something to do with compensation or something related to the
interconnection or connection itself.
LISTNUM
1 \l 1239
I will come back to section 40 in a moment though.
LISTNUM
1 \l 1240
So, I don't think you could find it there. And 32(g) under general powers it
says:
"The Commission may, for the
purposes of this part, in the absence of any applicable provision in this part,
determine any matter and make any order relating to rates, tariffs or
telecommunication services." (As
read)
LISTNUM
1 \l 1241
MR. GRIEVE: And it seems to
me that's really conditions of service, the definitions of the service, quality
of service, those kinds of things in addition to the rates. So, I don't believe this section would
contemplate something like that.
LISTNUM
1 \l 1242
The one that comes closest for you I think is section 24, conditions of
service, and the Commission has used section 24 in the past. It says:
"The offering and provision of any
telecommunication service by a Canadian carrier are subject to any conditions
imposed by the Commission or included in a tariff approved by the
Commission." (As
read)
LISTNUM
1 \l 1243
MR. GRIEVE: I think the key
word here is, "...the offering of any telecommunication service...", the actual
going into the business because that's really what you're talking about here is
imposing something that would be akin to a licence condition, you can't do
business unless you're part of this thing.
LISTNUM
1 \l 1244
And so, you know, what the Commission has done in the past to enforce
that in the day when everyone ‑‑ well, when the ILECs had tariffs and
everyone would connect using tariffs was, it would put in conditions of an
interconnection tariff based on section 24 or they put as a condition of
forbearance based on section 34, using section 24, things like compliance with
confidentiality terms, alternate billing formats, competitor access to MDUs,
unsolicited communications, cable company ‑‑ in the fact the cable company
obligation to provide TPIA service at a discount finds itself in section 24 and
the no bypass rule in section 34 ‑‑ that came out of section 34, section 24
was used for that.
LISTNUM
1 \l 1245
And then section 24 has been used to assign all of those responsibilities
to resellers as a term and condition of those resellers using the tariff
services of the carrier.
LISTNUM
1 \l 1246
Now, you know, like a lot of these ‑‑ or all of these really have to
do with the actual terms and conditions of services, things that you do as part
of the term and condition of service.
Of course, section 24 has never been judicially considered, so I can't
turn you to any case law on it.
LISTNUM
1 \l 1247
You know, you might be able to go after compulsory membership under
section 24. I don't know where you
would put the condition for carriers that are forborne across all of their
services. You would probably have
to put it as a condition imposed on interconnection tariffs and, of course, some
carriers have asked that interconnection tariffs not be required, so then you'd
have to find another way of imposing the condition and I'm not sure how you
would do that other than a specific rule‑making under the Act, and I'm not aware
that the Commission has actually employed its specific rule‑making function for
any purpose.
LISTNUM
1 \l 1248
So, now we're down to ‑‑ let's say you do it and now we're into the
enforcement question.
LISTNUM
1 \l 1249
THE CHAIRMAN: Can you speak
closer to the mike, please.
LISTNUM
1 \l 1250
MR. GRIEVE:
Sorry.
LISTNUM
1 \l 1251
THE CHAIRMAN: Just pull it
up a bit.
LISTNUM
1 \l 1252
MR. GRIEVE: Yeah. So, assuming we get past section 24,
then you're really into the enforcement question and Mr. Bibic has indicated
that one of the difficulties that he says Bell Canada has expressed about using
section 24 to impose a lot of service conditions on resellers is that it
puts ‑‑ and by the way, TELUS has expressed the same concerns over the
years ‑‑ it puts in this case the ILEC or at least the carrier in the
position of having to police its tariffs because we are responsible to make sure
people are complying with those tariffs.
LISTNUM
1 \l 1253
Then it is a question of what is the remedy. We have talked about this internally
many times. So what if we find out
that a reseller isn't complying with these things? The Commission is never going to let us
disconnect a competitor. Why would
they do that? They would try to
find some other way to do it.
LISTNUM
1 \l 1254
So, I just think it gets very messy, Mr. Chairman, and I am not sure that
you need to get that messy, at least at the
outset.
LISTNUM
1 \l 1255
Mr. Bibic said a moment ago that he thought that we could let it go on a
voluntary basis for a time, and see how it works out. If it becomes a problem, if there is a
real need and people are opting out or people aren't joining who should be
joining and it becomes a problem, then in that particular situation, you might
look for a way to make it mandatory.
The cleanest way, obviously, would be a legislative change to do that or
to allow that kind of an order to be made.
LISTNUM
1 \l 1256
But I think at this point the membership is sitting back saying we are
not sure about the jurisdiction.
Even if you had the jurisdiction to do it, which you might, then how do
you actually enforce it, how do you enforce payment of the membership fees
which, as I mentioned before, is an issue raised by Shaw. How do we do all of these things in a
way that is even reasonably efficient, and I think it just gets very
messy.
LISTNUM
1 \l 1257
Once again, we are saying give it a try.
LISTNUM
1 \l 1258
THE CHAIRPERSON: Do you have
anything to add, Mr. Bibic?
LISTNUM
1 \l 1259
MR. BIBIC: No. Mr. Grieve answered the
operational ‑‑
LISTNUM
1 \l 1260
THE CHAIRPERSON: I hear what
you are saying about jurisdiction has never been exercised this way. That doesn't mean it
can't.
LISTNUM
1 \l 1261
On the assumption that I disagree with you, I don't see why one consumer
should have more rights than another just because his TSP decides to join or
not.
LISTNUM
1 \l 1262
Assume for argument's sake that if challenged, we are successful in
maintaining it, we can do it, what would be a practical way of doing it so as to
not impose upon you ‑‑ because enforcement, as you suggested, will be
indirect ‑‑ an undue burden or make your operations more difficult than
they have to be? What would be the
cleanest way of doing it?
LISTNUM
1 \l 1263
MR. GRIEVE: I am not sure
there is anything the Commission could do to make it cleaner for
us.
LISTNUM
1 \l 1264
If we find ourselves in a situation where we are the ones required to
enforce a rule against a reseller, a rule of mandatory membership, I am not sure
there is anything the Commission can do in a mandatory order that would make it
easier on us.
LISTNUM
1 \l 1265
If the Commission said all ISPs registered with the Commission, assuming
that all ISPs are registered, because in fact we can probably be assured that
there are ISPs and Canadian carriers out there that don't even know that they
need to register, so assuming we could say all registered ISPs must be members,
somebody has to take the next step, somebody has to go out and contact every one
of those ISPs.
LISTNUM
1 \l 1266
So, let's say they were all contacted, the Commission made some sort of
an effort there, first of all, is it the CCTS that goes and contacts them? Then the CCTS has to find out if they
refuse to join or if they fail to join, has to figure out what is the remedy now
for this? Do we disconnect
them? What if it is an ISP not even
connected to the public internet through a Canadian facility? What if they are connecting through an
American facility along the border say in Vancouver or something like that, but
they are operating in Canada?
LISTNUM
1 \l 1267
There are so many things that we would have to find out in order to go
and even come back to the Commission with a proposed remedy. As I said, I don't know that there is
anything the Commission could do in an order unless Mr. Bibic can think of
anything that would make life any easier for the CCTS and its members to enforce
that.
LISTNUM
1 \l 1268
THE CHAIRPERSON: You went
into all sorts of other points from an operational point, but I started off from
the very simple point that if we say it is mandatory and there is somebody who
does not join and, as I say, we tie it to section 24, et cetera, I think we need
to think it through. Mr. Bibic says
give it a try and see if in six months it doesn't work, maybe then you have to
do it. Well, the issue will be the
same then as now, whether we make it mandatory up front or whether we make it in
six months. I think it behooves us
to think through how could this be done, et cetera.
LISTNUM
1 \l 1269
That is why we posed the question to you. I must say I am somewhat disappointed
that I have just got an answer that it should be voluntary, not some concrete
suggestions of how it could be done.
Then it is obviously for us to say in light of this, is it worthwhile or
not?
LISTNUM
1 \l 1270
But to decide it on the abstract is not having a good grasp of the
practical implications. It makes it
more difficult for us. Maybe you
can think about it and as a follow up give us some suggestions on that
point.
LISTNUM
1 \l 1271
MS CROWE: One thing that
could be done, and I still think much of the effectiveness of the current
structure of the CCTS could be impacted negatively if it were mandated, but one
thing that could be done is there would be a communications plan when the CCTS
is fully launched, whatever form it is in.
So, presumably customers would be aware when they contacted the CCTS and
the CCTS found that the TSP they were complaining about was not a member,
presumably that member could be identified at that point, just in terms of
identifying TSPs that were non‑compliant, and then the Commission could decide
how to handle it at that point.
LISTNUM
1 \l 1272
That is one thought.
LISTNUM
1 \l 1273
MR. BIBIC: Mr. Chairman, we
will give it some more thought. We
hear you.
LISTNUM
1 \l 1274
I have to say, though, that using Canadian carriers as indirect conduits
to regulation of carriers who aren't subject to your direct jurisdiction isn't
an issue that is just applicable to this.
It is an issue we have had difficulties with
before.
LISTNUM
1 \l 1275
I know this answer is not going to give you comfort, but certainly
legislative change would be nice.
But at the end of the day, I think if you could develop a solution, we
will try to get more precise, but that just was reasonable and exercised good
judgment.
LISTNUM
1 \l 1276
So, if the problem is Shaw, that is easy to identify. They are big. We can deal with that. But if it is a question of investigating
and policing and scouring the country for every little TSP that may or may not
have joined and figuring out what to do with them, I think now we are getting
into a whole bunch of practical difficulties and costs which, I would submit
from my perspective, probably outweighs the
benefit.
LISTNUM
1 \l 1277
THE CHAIRPERSON: That is not
the question I posed to you.
LISTNUM
1 \l 1278
This whole process is complaints driven. So, Mr. McKendry gets the complaint from
somebody and you find out it is somebody who has not joined, what do we do at
that point in time? Not scouring
the country, as you put it, and finding unregistered ISPs. What would we do in that instance? How do we, in effect, get that person to
sign up so that the dispute can be resolved by Mr. McKendry? That is the dynamics that I am looking
at.
LISTNUM
1 \l 1279
MR. BIBIC: In that case,
that gives me more comfort and perhaps we will come back to you with particular
practical solutions as to how we can deal with that.
LISTNUM
1 \l 1280
THE CHAIRPERSON: Mr. Bibic,
I look at it this way. The
government clearly wants to see forbearance, tells us to use market principles
and only regulate in case of market failure. We have done that.
LISTNUM
1 \l 1281
But at the same time, they said make sure the consumer is not left out,
and they have suggested this in the Order in Council. You have read it; you have studied it in
detail, et cetera.
LISTNUM
1 \l 1282
Clearly, it says consumers, not consumers of ISPs who have joined the
CCTS. It talks about consumers
generally. How do we reconcile
those two things? That is our
problem.
LISTNUM
1 \l 1283
In terms of membership, I think that covers it.
LISTNUM
1 \l 1284
Let's go over to governance.
First of all, I see that for the independents, you have one consumer
member to be nominated by some consumer groups, and then you have four
independents. What I don't quite
understand is with the definition of independents, I see your new letter which
suggests that the nomination will be done by the nominating committee of three
eminent Canadians, picking the nominees from a list found by a
headhunter.
LISTNUM
1 \l 1285
But the qualification for these independents, if I understand it
correctly, will, for instance, exclude former Commissioners. My colleague, Joan Pennyfather, no
longer on the committee would not qualify the way I read it. It seems to me that anybody who has been
here for the last three years, or did I get that wrong?
LISTNUM
1 \l 1286
MR. McTAGGART: Mr. Chairman,
that is precisely one of the changes that I read this morning, the second one on
that list. We had to make a
correction to the documents regarding the eligibility of people who had
previously been government employees.
LISTNUM
1 \l 1287
We eliminated what we call the three‑year cooling off period for those
people. So, that has been
changed. It was not the original
intention to exclude them.
LISTNUM
1 \l 1288
THE CHAIRPERSON: I see. How did you come to the specific number
of four independent and three industry for a total of seven? Any magic in why it was seven, why it
was not nine or why there is just one more independent than there are
industry? I would like you to
explain what rationale led you to this decision.
LISTNUM
1 \l 1289
MR. McTAGGART: Mr. Chairman,
the logic there started with the principle that industry directors had to be a
minority. So that was the base
line.
LISTNUM
1 \l 1290
Then the concept was that the majority would be comprised of individuals
who are independent. We were
inspired in that principle by the board of the Ombudsman for Banking Services
and Investments, the OBSI, which uses the very same model of a majority of
independents and a minority of individuals put forward by industry. So, the original concept was four
independents, three industry.
LISTNUM
1 \l 1291
Following consultation with consumer groups in June, we agreed to
designate one of the four independent director positions as a person who was put
forward by consumer groups, and the concept there is that any consumer group
that wants to participate in the process of nominating an individual can do
so. The board will recognize them,
and it is up to that group to put forward that name.
LISTNUM
1 \l 1292
I will stop there.
LISTNUM
1 \l 1293
THE CHAIRPERSON: But
implicit in this is that a consumer is a different independent than the other
three independents.
LISTNUM
1 \l 1294
I mean, the three independents to be nominated by the three wise men and
then to become self‑perpetuating cannot be consumers. I am interested to know why you make
that distinction. I would have
thought a consumer is also an independent.
LISTNUM
1 \l 1295
MR. BIBIC: It is consumer
groups, not consumers. Certainly
the three independents will likely be consumers, we hope.
LISTNUM
1 \l 1296
We think that one board seat designated specifically to consumer group
advocates is reflective of the role of consumer groups in the regulatory
ecosystem, as it were, for telecommunications. It is reflective of their role. They would have a board
seat.
LISTNUM
1 \l 1297
As for the other three, I think it is best for everyone concerned to have
independents in the true sense of the word, independent from industry members
and for those who participate quite actively in the
ecosystem.
LISTNUM
1 \l 1298
THE CHAIRPERSON: Given the
reality of this country, we have very active consumer groups in Quebec; we have
some other groups who are outside Quebec, et cetera. If they can't agree on a joint one,
would you be amenable to have two consumers and, therefore, enlarge the board so
that you still get the numerical differentiation, but you allow in effect to
have a French and an English consumer group
representative?
LISTNUM
1 \l 1299
MR. BIBIC: There is some of
us here, but the entire membership isn't here, so if you would allow me to
consult with all the other members, perhaps we can get back to you, Mr.
Chairman, on that one.
LISTNUM
1 \l 1300
THE CHAIRPERSON: The board
sort of works, as I understand it, by either simple majority with special
resolution, or by extraordinary resolution. My summary is basically simple majority
is for the appointment of auditors, the appointment of secretary and treasurer
and other business. But then
special resolution, which is five out of seven, you need the approval of the
annual report, election of independent directors, appointment of the share,
removal of a TSP, removal of a director.
Then you have those extraordinary resolutions for such things as approval
and amendment of the annual budget and business plan, appointment of the CEO,
approval and appeal of the amendment of by‑laws, approval and appeal of
amendment of any provision of the procedural code, removal of the CEO, amendment
of letter patents and approval of industry codes of
standard.
LISTNUM
1 \l 1301
It strikes me that that is relatively restrictive. Extraordinary, you are saying you need
two out of three TSPs, and just with a TSP not being there could basically block
any one of these, and five out of seven for the special
resolutions.
LISTNUM
1 \l 1302
The subject matter, some of them I understand very clearly, are of
concern, like the appointment of the CEO, which is obviously key. There is no question
there.
LISTNUM
1 \l 1303
But let's go to a special resolution. Approval of the annual report. Why do you require a special resolution
for that? Surely that is a report
of the board. Why do you need to
have a special resolution?
LISTNUM
1 \l 1304
MR. BIBIC: Let's deal with
that one first. I look at it the
other way, which it only takes one industry director to approve for it to
pass.
LISTNUM
1 \l 1305
With respect to annual reports specifically, the primary concern there,
to put it quite bluntly, is that I think the TSPs would be concerned with how
information is disclosed in terms of potential misleading disclosures and
disclosure of competitively sensitive information. So, in our view, it is quite an
appropriate and limited check on that.
LISTNUM
1 \l 1306
I note there was a party or two, and I can't remember who they were, in
their submissions who suggested, quite apart from this, but just suggested that
there should also be an exclusion of liability for the Commissioner in terms of
statements made by him or her in good faith. I think this would be one way of
addressing that concern. It is just
a very limited check where the TSP board members would say, is anything in here
misleading or does it disclose something that is competitively sensitive
information.
LISTNUM
1 \l 1307
So it acts in a way as a protection for the TSP and also for the
Commissioner in that regard.
LISTNUM
1 \l 1308
THE CHAIRPERSON: Isn't it
essentially Mr. McKendry's report?
I mean, the annual report is the Commissioner's activities, what he has
done, et cetera. You approve it and
it then goes out, but it seems to me he will be writing it, he will be stating
it, et cetera.
LISTNUM
1 \l 1309
Surely he will be sensitive to the various issues that you
mentioned.
LISTNUM
1 \l 1310
MR. BIBIC: Well, we
hope. We have no intention of
writing this report or of censoring the report. The main concern was really with those
two items, Mr. Chairman: Misleading
disclosures and disclosure of competitively sensitive information. That is what motivated special
resolution power for the annual reports, not to dictate what is in that report
or what will be said. It will be
the Commissioner's report, with that I agree.
LISTNUM
1 \l 1311
THE CHAIRPERSON: Or the
appointment of a Chair for board meetings, why do you need a special resolution
for that?
LISTNUM
1 \l 1312
MR. BIBIC: For which
one?
LISTNUM
1 \l 1313
THE CHAIRPERSON: When you
have a board meeting, I understand somebody has to chair that meeting. Right?
LISTNUM
1 \l 1314
MR. BIBIC:
Yes.
LISTNUM
1 \l 1315
THE CHAIRPERSON: The vote
has to be a special resolution, i.e. five out of seven have to agree who is
going to chair a meeting?
LISTNUM
1 \l 1316
MR. BIBIC: I think it is the
Chair of the Commission itself, Chair of the board of the CCTS itself that
requires a special resolution. That
goes back to the same kind of philosophy ‑‑
LISTNUM
1 \l 1317
THE CHAIRPERSON: So,
Chairman of the agency basically.
LISTNUM
1 \l 1318
MR. BIBIC: Yes. The philosophy there, Mr. Chairman, is
not unlike what you have with the hiring of the
Commissioner.
LISTNUM
1 \l 1319
The way I conceive of this is for this to really be effective and to work
you need really two things. At a
high level, you need to meet the requirements of the OIC, including
independents, and the members also have to have fundamental confidence in the
system for this to really be effective.
LISTNUM
1 \l 1320
So, with respect to the Chair, I would have thought that the Chair would
want to know that he has the confidence of the board membership at large. It is as simple as that. The same thing with the appointment of
the Commissioner. At the end of the
day, I would expect that the Commissioner would want to know that all groups
that he will have to work with on a day‑to‑day basis have his
confidence.
LISTNUM
1 \l 1321
THE CHAIRPERSON: Aren't you
worried that you are building that in the possibility of a deadlock too easily
by putting such requirements in?
LISTNUM
1 \l 1322
MR. BIBIC: For an
appointment of a Chair, I wouldn't think so at all, Mr.
Chairman.
LISTNUM
1 \l 1323
MR. McTAGGART: Perhaps I
could clarify. The Chair must be
drawn from the independent directors group.
LISTNUM
1 \l 1324
THE CHAIRPERSON: I
appreciate that.
LISTNUM
1 \l 1325
On the extraordinary resolutions, as I say, I can see that you want an
extraordinary resolution for amendments of letters patent or the appointment of
the CEO, but some of the other ones strike me as ‑‑ approval or amendment
of the annual budget or business plan.
Why do you need an extraordinary resolution for
that?
LISTNUM
1 \l 1326
MR. BIBIC: Mr. Chairman, on
costs I have to say that cost structures are critical to us. They absolutely are critical to us. Financial accountability is critical in
every single business, especially for those who are going to fund it, and all we
are looking for is a measure of accountability with respect to the cost
structure of the organization.
LISTNUM
1 \l 1327
If the costs run rampant, again there is a fundamental risk that there
will be a loss of confidence in the system. In fact, I would have been quite
comfortable coming before you and making a case that cost structure requires
unanimous approval of the industry.
But in this case, two‑thirds is sufficient.
LISTNUM
1 \l 1328
It would take all TSP directors to veto a budget.
LISTNUM
1 \l 1329
THE CHAIRPERSON: Mr. Bibic,
why in extraordinary was this a special one? If you made that subject to a special,
you would still require the TSPs ‑‑ there is no way that the independents
could impose on you costs that you don't want. But you are going one step further. You are notching it up one level and
bringing it from special resolution to an extraordinary
resolution.
LISTNUM
1 \l 1330
MR. BIBIC: There is three
categories of industry directors.
There is an ILEC category, I believe, the cableco category, and the other
TSP category. It is not necessarily
the case, and I suspect we will not all be ad idem on all
issues.
LISTNUM
1 \l 1331
Funding and cost structures are a big issue for us, Mr. Chairman. They are a big issue for us
internally. It drives practically
every single one of our internal business decisions, and we don't think it is
unreasonable at all for reasonable checks and balances on cost structure to be
implemented in the regime.
LISTNUM
1 \l 1332
THE CHAIRPERSON: Can you
just answer my specific question? I
buy that; you carry the freight so clearly you won't have a say on that and you
don't want to have costs imposed upon you that you feel are unreasonable. But you have your special
resolution. Already you have that
protection. You notched it up one
level here by saying, no, actually two out of the three TSPs have to approve
it. That is why I am trying to
figure out why you feel that is so vital.
LISTNUM
1 \l 1333
MR. BIBIC: It is not two out
of three TSPs. It the two out of
three classes of TSPs. So, the
category of other TSPs may not end up paying as much of the cost as the other
two categories, in which case they may not be as vigilant with respect to the
cost structure on the one hand, or I could conceive of a situation where the
other category, the other TSPs, the smaller TSPs are causing most of the
complaints and, therefore, have to fund their disproportionate share of the
costs, and they may be tremendously concerned with the cost structure, whereas
an ILEC who is bigger, larger, may be willing to pay less attention to the
issue, could simply pass the cost structure through.
LISTNUM
1 \l 1334
So, we thought that two out of three was reasonable in this
context.
LISTNUM
1 \l 1335
MR. BÉLAND: If I might add,
Mr. Chair, to be frank, this was an issue of concern to Vidéotron and the other
cable carriers that have joined the organization.
LISTNUM
1 \l 1336
The potential of having a situation where one class of TSPs alone could
in effect secure passage of all budgetary matters was something of a concern to
our particular class of TSPs, to be frank.
LISTNUM
1 \l 1337
THE CHAIRPERSON: Okay, thank
you. This shows the value of
hearings like this. That there
might be different interests between different classes of TSPs, I must confess,
hadn't occurred to me. Now, I see
the rationale when you talk about costs.
LISTNUM
1 \l 1338
What about some of the others like approval of repeal or amendment of any
provisions of the Procedural Code?
Again, you think that should be subject to an extraordinary
resolution.
LISTNUM
1 \l 1339
MR. BIBIC: In terms of the
Procedural Code, Craig will take that one.
LISTNUM
1 \l 1340
MR. McTAGGART: Mr. Chairman,
the rationale there is that the Letters Patent, the by‑laws, the Membership
Agreement and the Procedural Code really constitute the fundamental
documentation of the organization, the fundamental legal
structure.
LISTNUM
1 \l 1341
The Procedural Code defines the scope or the mandate of the agency, what
services are in and out, what matters are in and out. As you have heard some of our Members
say already today, that they made a decision to adhere to the CCTS based on a
very specific design for the agency, a very specific indication of what is
inside and outside of its scope.
LISTNUM
1 \l 1342
So in our view, the Procedural Code is a fundamental corporate document
of the organization and therefore, as in any corporation, that kind of document
would require a high level of concurrence to amend.
LISTNUM
1 \l 1343
THE CHAIRPERSON: Thank
you.
LISTNUM
1 \l 1344
Any questions on this?
LISTNUM
1 \l 1345
COMMISSIONER KATZ:
No.
LISTNUM
1 \l 1346
THE CHAIRPERSON:
Michel?
LISTNUM 1 \l 1347
CONSEILLER MORIN : Je ne voudrais pas revenir dans les détails, mais
d'une manière générale, il y a des organismes de protection ou de réception des
plaintes du consommateur, comme en Australie, par exemple, où on a, d'un côté,
trois représentants des consommateurs, trois représentants de l'industrie, et
puis un autre qui est nommé par les deux
parties.
LISTNUM 1 \l 1348
Est‑ce que, pour vous, les propositions que vous faites, qui vous donnent
peut‑être pas... vous me direz, peut‑être pas un avantage, mais vous êtes déjà
trois, vous avez trois indépendants, et puis un autre représentant des
consommateurs.
LISTNUM 1 \l 1349
Si on avait une structure, disons, trois consommateurs, trois
représentants de l'industrie, est‑ce que, pour vous, c'est une question de
principe ou d'efficacité qui vous amènerait à me refuser ce modèle là, par
exemple?
LISTNUM 1 \l 1350
Je vous pose la question d'une manière très générale. Est‑ce que c'est une question
d'efficacité ou de principe?
LISTNUM 1 \l 1351
M. BÉLAND : C'est plutôt une question d'efficacité, Monsieur Morin. Je vais vous dire qu'on a examiné la
structure en Australie, et on a tiré des conclusions, et je vais laisser la
parole à monsieur McTaggart, qui connaît plus les détails de l'Australie que
moi.
LISTNUM
1 \l 1352
MR. McTAGGART: Mr.
Commissioner, I hope you will indulge me with an answer in
English.
LISTNUM
1 \l 1353
The working group that put together the CCTS did look very closely at
several other models for corporate structures, the Australian Telecommunications
Industry Ombudsman or TIO being one.
LISTNUM
1 \l 1354
We also looked very carefully at very similar organizations closer to
home that operate under the same legal system the CCTS does and I will return to
those shortly but I will speak to the Australian TIO
first.
LISTNUM
1 \l 1355
First, it is important to note that the TIO is a very different kind of
body. The TIO is a statutory body
whose powers and mandate and membership are mandated by
legislation.
LISTNUM
1 \l 1356
Here, we are creating an industry body in corporate form and also a body
that must exist within the Canadian corporate law framework. So it wasn't as easy as simply importing
a different model.
LISTNUM
1 \l 1357
But one thing I want to point out about the TIO model is that in the
working group's deliberations, informed of course very much by legal counsel, we
came to the view that the TIO model would not satisfy the independence
requirement of the order in council.
LISTNUM
1 \l 1358
The TIO's structure involves a traditional corporate board at the highest
level that is dominated by the TSP members and then a separate body called a
council, which I believe, as you have described, is half industry, half
consumer, with an independent chair.
LISTNUM
1 \l 1359
Our analysis was that given the power that was reserved to the corporate
board at the top level, that type of structure would not satisfy the
independence requirements of the order in council.
LISTNUM
1 \l 1360
So what we tried to do instead was ‑‑ as I say, we looked at
successful functioning models closer to home, the Ombudsman for Banking Services
and Investments, the OBSI, being the primary one but there are others, the
General Life and Health Insurance Ombudsman and the General Insurance
Ombudsman.
LISTNUM
1 \l 1361
These are industry bodies in federally regulated industries in Canada
that perform a very similar function to what the CCTS does and for that reason
we were attracted to the Canada Corporations Act Part II, Corporate Structure,
and in particular we designed a single governing body because whenever we tried
to work with the Australian TIO body model and tried to create a structure that
would be sufficiently independent, we ended up foreseeing two bodies that have
very similar membership profiles trying to achieve the same level of
representation on each body and it soon became obvious that there was no
justification for having two bodies with very similar
profiles.
LISTNUM
1 \l 1362
Mr. Bibic mentioned the efficiency reason and that shouldn't be
dismissed. With an organization of
our size, it would simply be inefficient to have two separate governing bodies
and all of the associated costs and also the difficulty of populating those
boards and it shouldn't be underestimated, particularly in today's economy in
Canada.
LISTNUM
1 \l 1363
It is not a simple matter to populate a board with qualified independent
directors and for that reason we didn't want to create a large board nor two
separate bodies that would each require being staffed.
LISTNUM
1 \l 1364
I will end there and let you continue your
questions.
LISTNUM 1 \l 1365
CONSEILLER MORIN : Mais vous n'êtes quand même pas en train de me dire
que vous ne pourriez pas strictement avoir une structure comme celle de
l'Australie?
LISTNUM 1 \l 1366
Est‑ce que c'est ça que vous me dites, que vous ne pourriez pas vraiment
avoir une structure qui, sans être exactement le modèle australien, ferait la
part entre les consommateurs, d'une part, et l'industrie, d'autre part, sur un
pied d'égalité, techniquement là?
LISTNUM 1 \l 1367
M. BIBIC : Techniquement, Monsieur Morin, on serait d'accord qu'il y a un
nombre varié... il y a plusieurs façons qu'on aurait pu établir la structure qui
rencontrerait l'obligation que la structure soit indépendante. Il y a un nombre potentiellement
illimité de structures.
LISTNUM 1 \l 1368
La question fondamentale en bout de ligne, c'est celle‑ci : Est‑ce que la
structure qui a été établie par les membres, est‑ce qu'elle est indépendante,
est‑ce que c'est un organisme indépendant?
LISTNUM 1 \l 1369
Nous, on prétend que oui, et si vous êtes d'accord, voilà, vous devriez
approuver, selon nous.
LISTNUM 1 \l 1370
CONSEILLER MORIN : Petite question, peut‑être pour le modèle australien
encore.
LISTNUM 1 \l 1371
Est‑ce que... en Australie, vous avez évoqué tout à l'heure que ça
pourrait conduire à une explosion des coûts, en tout cas, à un certain
dérapage. J'ai compris ça dans vos
mots.
LISTNUM 1 \l 1372
En Australie, parce que les consommateurs sont très présents,
représentent la moitié, sont en parité, finalement, avec l'industrie, est‑ce
qu'il y a eu beaucoup de... est‑ce qu'il y a eu des dérapages, des explosions de
coûts en Australie parce que les consommateurs étaient présents au conseil dans
un nombre beaucoup plus important que celui que vous
proposez?
LISTNUM
1 \l 1373
MR. McTAGGART: No, Mr.
Commissioner, that wasn't what I was intending to suggest earlier. It is not my understanding that the
explicit participation of consumer group representatives has resulted in any
cost control problems in the Australian body.
LISTNUM 1 \l 1374
M. BÉLAND : Si je peux faire un commentaire, et j'avoue ne pas être très
familier avec le modèle australien, comme j'ai mentionné
tantôt.
LISTNUM 1 \l 1375
Vidéotron a été embarqué dans ce processus là après l'élaboration de base
du modèle. Donc, je ne faisais pas
partie de l'analyse du modèle australien.
LISTNUM 1 \l 1376
La seule chose que je dirais sans hésitation, c'est qu'il faut regarder
tout ce qui est proposé comme un package, dans son ensemble. Aller voir la composition du conseil
indépendamment des règles de votation sur telle et telle et telle question
serait, évidemment, dangereux.
LISTNUM 1 \l 1377
Nous, quand le modèle nous a été présenté chez Quebecor Media, chez
Vidéotron, on a évalué le package dans son ensemble. On avait un couple d'exigences de base,
et on a trouvé que le modèle satisfaisait à nos
exigences.
LISTNUM 1 \l 1378
Une exigence de base, c'était la responsabilité financière. D'une façon ou d'une autre, ceux qui
paient doivent avoir un mot à dire sur le budget de l'organisme. C'est clair, absolument clair pour
nous.
LISTNUM 1 \l 1379
Une autre exigence fondamentale de la part de Vidéotron, c'était le
contrôle sur l'évolution du mandat de l'organisme, que ça soit via le Code
procédural, via d'autres expansions possibles.
LISTNUM 1 \l 1380
Ce qui est devant nous aujourd'hui, c'est un organisme, encore une fois,
focussé de façon résolue sur le règlement de plaintes, dans un contexte
contractuel, au détail entre un fournisseur et un client.
LISTNUM 1 \l 1381
Toute possibilité de dépassement de ce mandat là, si ça va dans le sens
d'une agence de réglementation plutôt qu'une agence de règlement de plaintes,
serait très inquiétante pour nous, et c'est de là que viennent les règles de
votation extraordinaires sur certains sujets.
LISTNUM 1 \l 1382
Donc, je pourrais peut‑être commenter la mathématique de la composition
du conseil d'administration, mais on ne peut pas l'isoler des règles de
votation, puis des sujets qui sont assujettis à des règles de votation spéciales
ou extraordinaires.
LISTNUM 1 \l 1383
CONSEILLER MORIN : Mais avec ces règles de votation, avec la nomination
des membres au conseil, est‑ce qu'on peut dire que cet organisme est vraiment un
organisme indépendant de l'industrie pour traiter des plaintes des
consommateurs, parce que c'est l'argument qui va être soulevé par les
consommateurs?
LISTNUM 1 \l 1384
Est‑ce que l'industrie n'a pas, finalement, une sorte de droit de veto
sur les résolutions, sur le budget, sur le rapport annuel? C'est un peu ça.
LISTNUM 1 \l 1385
M. BIBIC : Monsieur Morin, en ce qui concerne le traitement des plaintes,
il faut souligner que le président ou le commissaire, the Commissioner, opère
complètement... d'une façon complètement indépendante des directeurs, of the
directors.
LISTNUM 1 \l 1386
Le président ou le commissaire ne doit pas discuter des cas spécifiques
avec le conseil d'administration ou aucun de ses membres. Donc, de cette façon là, on a protégé
l'indépendance de l'organisme en ce qui concerne le traitement des plaintes
spécifiques.
LISTNUM 1 \l 1387
CONSEILLER MORIN : Je vous donne un exemple sur les plaintes, puis on y
reviendra tout à l'heure.
LISTNUM 1 \l 1388
Mais vous savez très bien, comme vous l'avez dit il y a quelques minutes,
qu'il peut y avoir une évolution dans le mandat, et caetera, et si je comprends
bien, c'est par la voie de résolution extraordinaire que vous pourriez
éventuellement confier un mandat plus élargi au commissaire des plaintes, et sur
ce mandat extraordinaire, avec le système des deux tiers, bien, vous avez
quasiment une sorte de droit de veto.
LISTNUM 1 \l 1389
M. BIBIC : Si je peux répondre sur la question de l'expansion du mandat
en anglais pour un moment, ça sera un peu plus facile pour
moi.
LISTNUM
1 \l 1390
When it comes to the expansion of the mandate and examination of issues
beyond the handling of specific complaints, our view is that the TSPs need a say
at the board level because if, for example, some kind of substantive code or
expansion of mandate is to be developed by this agency in a kind of
self‑regulatory kind of way, clearly it is not going to work, fundamentally not
going to work unless there is buy‑in from the industry. Otherwise, self‑regulation ‑‑ I
mean self‑regulation, it is doomed to fail.
LISTNUM
1 \l 1391
And that is why, again, I would have been quite comfortable actually
coming here and proposing that that kind of expansion of mandate should have
been subject to unanimity. It is
not. It is subject to two out of
three of the industry directors.
LISTNUM
1 \l 1392
We are not foreclosing in any manner, shape or form the potential need
down the road of development of, for example, a substantive code and we suspect
that to the extent that there is a threat of direct CRTC regulation on a given
issue, that that will be high motivation indeed for the members to agree to
this.
LISTNUM
1 \l 1393
But there is not going to be any confidence in the system is there isn't
buy‑in. How else can you develop a
code or expand the mandate, whatever the issue might be?
LISTNUM
1 \l 1394
THE CHAIRPERSON: Okay, we
will deal with the mandate after the break. Let's take a 10‑minute
break.
LISTNUM
1 \l 1395
But before we do that I just would ask you to take a careful look at the
subject matters which are for special and extraordinary resolution because as
you will hear from the submissions later on, there are quite a few people who
take issue with it and it seems to me one must say that you erred on the side of
abundance of caution.
LISTNUM
1 \l 1396
There are a few things that can be moved without ‑‑ what I gather is
your principal concern is that you have three different groups of TSPs and you
want to make sure that all their interests are represented on the key decisions
and that is, I think, perfectly legitimate. I just wonder whether you have to go as
far as you did.
LISTNUM
1 \l 1397
Anyway, let's take a 10‑minute break and then we will continue. Thank you.
‑‑‑ Recessed at 1116 / Suspension à
1116
‑‑‑ Resumed at 1132 / Reprise à
1132
LISTNUM
1 \l 1398
THE CHAIRPERSON: Let's just
go back one second.
LISTNUM
1 \l 1399
There is another provision in there which ‑‑ when we are talking
about the adoption or even the consideration of a new code by the CCTS, the
provision is that only a TSP can put that forward. There is no provision that either we or
the Commission could put it forward or another member of the
board.
LISTNUM
1 \l 1400
I can understand you not wanting to be overburdened with a lot of extra
work and therefore anything that is put forward obviously is subject to a vote
and you have it right now as an extraordinary resolution. But why a member of the board ‑‑
you have four members there, one representing consumer groups; three ‑‑
they are independent people selected by your procedure. They can't even put something
forward. Isn't that somewhat
harsh?
LISTNUM
1 \l 1401
I mean, you can vote it down but it seems to me if somebody says they
really do need a code on whatever or we should expand the present code to cover
that, isn't that a legitimate exercise of his or her duties as a member of the
board?
LISTNUM
1 \l 1402
MR. McTAGGART: Let me first
just make sure we are clear that your understanding ‑‑ and this is drawn
from section 86 of the bylaw that only ‑‑ that the development of industry
codes of conduct and standards must be initiated by request by the TSP
members.
LISTNUM
1 \l 1403
THE CHAIRPERSON:
Right.
LISTNUM
1 \l 1404
MR. McTAGGART: And
subsequently approved by way of extraordinary resolution.
LISTNUM
1 \l 1405
THE CHAIRPERSON: Thank you
for putting it so precisely.
LISTNUM
1 \l 1406
MR. BIBIC: Well, I hesitated
because I wasn't sure if we were talking about the codes or the identification
of trends, Mr. Chairman.
LISTNUM
1 \l 1407
I think this is one where we probably also will have to come back to you
with a collective members' view. I
could certainly answer on my own company's behalf but I can't ‑‑ I have to
say that I don't know what the membership's views would be on your specific
proposition.
LISTNUM
1 \l 1408
THE CHAIRPERSON: There is
some issue out there which needs to be addressed and if you four representatives
feel very strongly about it, they should be able to share it with their
colleagues and get a discussion going.
You can also vote it down because if you keep this present provision all
they are going to do is they are going to petition us and we are going to ask
you to look into it.
LISTNUM
1 \l 1409
So why are we doing this?
This is supposed to be an industry self‑regulatory issue. It's something of considerable concern
that these folks feel needs to be raised at the board level, I think they have
a ‑‑
LISTNUM
1 \l 1410
MR. BIBIC: Certainly, on
behalf of Bell Canada, and I suspect the others would likely agree, that at that
stage I can't see anything wrong with another director bringing forward an issue
and if the ‑‑ without affecting the voting rights of the industry directors
on whether or not the agency proceeds with the development of such a
code.
LISTNUM
1 \l 1411
I think there is a distinction between the two and the point you make we
have heard loud and clear.
LISTNUM
1 \l 1412
THE CHAIRPERSON:
Okay.
LISTNUM
1 \l 1413
Then just as a procedural point, we send you a letter to which we
attached this chart, which sort of graphically represents the nomination process
as we understand it subject to the modification which was in your recent letter
that the provisional board of three people, I have no choice but to accept the
selection of the three wise men from the head hunter to
appointment.
LISTNUM
1 \l 1414
But I gather this represents the way the nomination process works. If so, I would like to introduce it as
CRTC Exhibit 1 so that I can use it in future cross‑examination or examination
of other witnesses.
EXHIBIT CRTC‑1: Chart representing the nomination
process
LISTNUM
1 \l 1415
MR. BIBIC: Yes, Mr.
Chairman. You know, there might be
some technical niceties in terms of the corporate language involved, but the
members are comfortable that the diagram accurately describes the
process.
LISTNUM
1 \l 1416
THE CHAIRPERSON: All
right.
LISTNUM
1 \l 1417
Okay, then let's go on to mandate.
LISTNUM
1 \l 1418
Michel, I think you have some questions.
LISTNUM 1 \l 1419
CONSEILLER MORIN : Monsieur Bibic, vous avez dit dans votre présentation
que vous avez consulté plusieurs intervenants pour avoir une vue d'ensemble, et
ces intervenants là, je pense bien que ça devait être principalement les
consommateurs.
LISTNUM 1 \l 1420
J'aimerais simplement, pour établir la
discussion...
LISTNUM 1 \l 1421
Quel genre de consultation vous avez fait? Est‑ce que c'était une consultation
formelle sur des points précis de fonctionnement de mandat avec les
consommateurs ou si c'était, comme vous le dites, quelque chose
d'ensemble?
LISTNUM 1 \l 1422
M. BIBIC : C'était... on a
consulté... au tout début, il y avait les plus grosses entreprises titulaires
qui se sont rassemblées pour commencer le développement de cet organisme. Il y avait Bell Canada, Bell Aliant,
SaskTel, TELUS, évidemment, et on a développé une structure qu'on a ensuite
présentée à plusieurs groupes.
LISTNUM 1 \l 1423
On a rencontré les câblos.
Ils ont ensuite... comme vous le savez, il y en a plusieurs d'entre eux
qui se sont joints à nous.
LISTNUM 1 \l 1424
On a rencontré d'autres fournisseurs tels que MTS Allstream et Primus et
Vonage.
LISTNUM 1 \l 1425
Et on a eu une troisième rencontre avec plusieurs groupes qui
représentent les consommateurs. Il
y en avait plusieurs.
LISTNUM 1 \l 1426
Et dans ces rencontres là, on leur a dévoilé la structure que, plus ou
moins, vous voyez devant vous aujourd'hui.
On a ajusté quelques aspects de la proposition en fonction des
commentaires qu'on a reçus.
LISTNUM 1 \l 1427
Mais c'était, d'après moi, en tout cas ‑‑ j'étais là ‑‑ des
consultations assez détaillées sur des éléments de la structure assez
précis. Et
voilà!
LISTNUM 1 \l 1428
CONSEILLER MORIN : Est‑ce qu'il y avait, par exemple, un questionnaire
précis où des gens devaient cocher pour être bien sûr de l'opinion de chacun ou
si c'était une discussion générale?
LISTNUM 1 \l 1429
M. BIBIC : Non, non. C'était
une discussion ouverte et générale sur plusieurs aspects de la proposition. Il y avait un agenda, et
caetera.
LISTNUM 1 \l 1430
CONSEILLER MORIN : Les consommateurs dans leurs mémoires, certains là,
sans les citer, il y en a qui prétendent que les entreprises de
télécommunication pourraient, par contrat, limiter éventuellement la portée des
sujets abordés par le commissaire des plaintes.
LISTNUM 1 \l 1431
Ce que j'aimerais savoir, est‑ce que... On peut concevoir que les contrats sont
différents d'entreprise à entreprise, mais est‑ce que, à partir du moment où les
gens font partie du CPRST, est‑ce que, à ce moment là, leur contrat peut être
élargi de manière à soustraire des plaintes au Commissaire des
plaintes?
LISTNUM 1 \l 1432
Autrement dit, est‑ce que les contrats, à partir d'aujourd'hui, sont
gelés dans le sens restrictif du terme?
LISTNUM 1 \l 1433
M. BIBIC : D'après nous, ce serait inapproprié qu'un fournisseur qui
s'engage à l'organisme devrait laisser tomber ses droits
contractuels.
LISTNUM 1 \l 1434
Malgré ça, les Membres qui se sont joints à l'organisme sont d'accord que
durant l'examination du dossier par l'organisme, par le commissaire, qu'il
serait acceptable pour que le commissaire suggère une résolution au problème qui
dépasse les sections formelles ou les droits formels du contrat en ce qui
concerne, par exemple, la limitation monétaire. Mais ça, ça serait aux fins d'essayer de
résoudre le problème.
LISTNUM 1 \l 1435
Si la résolution proposée par le commissaire n'est pas acceptable au
consommateur ou au fournisseur et le commissaire se doit d'émettre une décision
formelle, à ce point là, on est d'avis que le commissaire devrait et doit
respecter les termes contractuels auxquels le fournisseur et le consommateur de
sont engagés au début.
LISTNUM 1 \l 1436
Les cours le font. Les cours
respectent les droits contractuels des deux parties. Le CRTC le fait aussi. Et d'après nous, il serait approprié que
le commissaire le fasse aussi.
LISTNUM 1 \l 1437
CONSEILLER MORIN : D'une manière générale, une des craintes... vous avez
dit tout à l'heure que vous avez déjà reçu un certain nombre de
plaintes.
LISTNUM 1 \l 1438
Est‑ce que vous avez un plan qui consisterait à faire connaître le CCTS
auprès de l'ensemble des consommateurs?
Est‑ce qu'il y a un plan... et avant que vous me parliez de votre plan,
j'aimerais vous poser la question suivante.
LISTNUM 1 \l 1439
Est‑ce que la meilleure façon d'informer le consommateur que votre
organisme existe ne serait pas de faire en sorte que ce soit sur la facture du
client, que sur la facture du client, on puisse retrouver la possibilité de
faire une plainte par courriel, par fax, par le site internet ou d'une façon
orale ‑‑ on en reparlera tout à l'heure ‑‑
?
LISTNUM 1 \l 1440
Mais est‑ce que la façon, finalement, de faire cette publicité ou en tout
cas d'annoncer la création d'un commissaire des plaintes, ce ne serait pas que,
mois après mois, d'une manière récurrente, que le consommateur, quand il lit sa
facture de téléphone, il sait qu'il peut s'adresser à un
organisme?
LISTNUM 1 \l 1441
M. BIBIC : Je vais répondre à la question en partie, et ensuite, je vais
donner la parole à mademoiselle Crowe de MTS.
LISTNUM 1 \l 1442
Mais en ce qui concerne la facturation, les entreprises titulaires qui
ont été déréglementées récemment ont dû indiquer sur la facture, au moment de la
déréglementation, que l'organisme était, je crois... que l'organisme existe, et
c'était un des éléments requis par le conseil en ce qui concerne le plan de
communication autour de la question de déréglementation. Donc, ça été fait à un certain niveau
déjà.
LISTNUM 1 \l 1443
Il faut aussi apprécier que c'est très... de notre point de vue, c'est
très, très dispendieux d'inclure des messages de cette sorte sur les factures,
beaucoup plus dispendieux, je crois, que les gens imaginent, et aussi, on
utilise ces espaces là pour d'autres messages promotionnels. Donc, si c'était une question de le
faire mois après mois, ça serait une question très difficile pour nous
d'implémenter.
LISTNUM 1 \l 1444
Mais en ce qui concerne le plan en général... Oui.
LISTNUM 1 \l 1445
CONSEILLER MORIN : Mais, dans le fond, est‑ce que ce ne serait pas moins
dispendieux de l'incorporer carrément à la facture et que ce soit de façon
récurrente, donc, ce ne soit pas à modifier de mois en
mois?
LISTNUM 1 \l 1446
Plutôt que d'ajouter un feuillet de temps à autre, si c'était incorporé à
la facture, est‑ce qu'on n'aurait pas là une façon directe, parce qu'un mois, un
consommateur peut se plaindre, mais après, pendant 12 mois, il n'a aucune
plainte contre sa compagnie, mais vient le 13e mois, et là, oops, c'était
où?
LISTNUM 1 \l 1447
Alors, voyez‑vous, c'est cette difficulté que...
LISTNUM 1 \l 1448
M. BIBIC : Oui.
LISTNUM 1 \l 1449
CONSEILLER MORIN : ...je mets en...
LISTNUM 1 \l 1450
M. BIBIC : Monsieur Morin, il y a beaucoup de... d'après moi, il y aurait
plusieurs autres façons de le faire qui seraient aussi efficaces, sinon plus
efficaces.
LISTNUM 1 \l 1451
Les consommateurs recherchent la simplicité en ce qui concerne la
facturation. Il y a beaucoup de
consommateurs, et de plus en plus à chaque mois, qui optent pour la facturation
électronique.
LISTNUM 1 \l 1452
Inclure ces messages là sur les factures qui sont émises en papier, c'est
très, très, très dispendieux, et, d'après moi, il y aurait d'autres façons de
s'assurer que les consommateurs sont au courant de leurs options en ce qui
concerne la résolution de leur plainte, et je préférerais qu'on examine ces
autres options là que d'exiger que sur chaque facture, à chaque mois, on prenne
plus de place encore.
LISTNUM 1 \l 1453
Les factures sont déjà détaillées et je crois, pour la simplicité, il
faudrait trouver d'autres façons qui seraient plus
efficaces.
LISTNUM 1 \l 1454
CONSEILLER MORIN : Est‑ce qu'on pourrait peut‑être éventuellement avoir
des suggestions plus précises, éventuellement peut‑être, parce que sur le site
internet, il pourrait y avoir ce même message aussi?
LISTNUM 1 \l 1455
Évidemment, dans la mesure où les gens paient par voie électronique, on
comprend qu'ils ne regardent pas nécessairement la facture, mais sur le site
internet, ils pourraient le faire.
LISTNUM 1 \l 1456
M. BIBIC : Ah! Absolument, ils pourraient le
faire.
LISTNUM
1 \l 1457
MS CROWE: I think I will
jump in here. Pardon me for
speaking in English but the other issue with putting the CCTS contact
information or any procedural information on a customer's invoice is we don't
want the CCTS getting every customer question about the bill itself and that is
a risk if the CCTS information is on every customer invoice. There is the risk that that is the first
person the customer will call with every question they have. That wouldn't be an appropriate use of
the CCTS' resources and as a service provider we want the first crack at making
it right for the customer. It is
very much in our interest to get things right.
LISTNUM
1 \l 1458
That being said, a lot has already ‑‑ well, there's a lot of people
who have already noticed the existence of the CCTS. As you already heard, there have been
over 1,000 customers who have contacted the CCTS when there hasn't been a very
big communications effort made. So
I think that is a good sign.
LISTNUM
1 \l 1459
In the future, once we know exactly what the CCTS is going to look like,
further communications ‑‑ Mirko has talked about some of them ‑‑ are
indeed websites. Most people do
turn to the internet now to figure out how to deal with any issue they
have.
LISTNUM
1 \l 1460
The CRTC itself already has a linkup to the CCTS and that is useful. Members certainly should do the
same. There could be a line in our
directories.
LISTNUM
1 \l 1461
The permanent CCTS Commissioner, I am sure, will also be talking to the
media as the bigger launch is done and have a plan of his or her own as
well.
LISTNUM 1 \l 1462
CONSEILLER MORIN : Évidemment, on peut dire ça, mais en Australie, par
exemple, le commissaire des plaintes, l'Ombudsman là‑bas, se plaint qu'on ne
fait pas assez sa promotion, enfin, qu'il n'arrive pas nécessairement à
rejoindre tous les consommateurs qui veulent se plaindre. Alors, c'est pour ça que je faisais
allusion à une formule toute simple.
LISTNUM 1 \l 1463
Maintenant, en ce qui concerne votre site internet, justement, je suis
allé sur votre site internet, Commissaire aux plaintes relatives aux services de
télécommunications, et je vois, parmi les services en dehors de la portée de
l'Ombudsman, que les personnes handicapées, ce ne serait pas votre affaire.
Évidemment, vous avez fait des remarques ce matin.
LISTNUM 1 \l 1464
J'aimerais m'assurer auprès de vous, en ce qui concerne les aveugles, les
sourds, quelle est votre position exactement?
LISTNUM 1 \l 1465
Actuellement, je comprends qu'on peut adresser une plainte via un fax,
via votre site internet ‑‑ c'est très bien fait, d'ailleurs. Au niveau de votre site internet, on
peut remplir, et c'est tout simple ‑‑ et par écrit. Bon!
LISTNUM 1 \l 1466
Mais aujourd'hui, pour un groupe qui représente l'industrie des
télécommunications, le courriel, c'est très efficace. J'ai Sympatico à la ville et à la
campagne, et ça fonctionne très bien.
LISTNUM 1 \l 1467
Est‑ce que le courriel ne pourrait pas faire partie des façons de
communiquer? Est‑ce que le
téléphone ne pourrait pas faire partie des façons de communiquer? Est‑ce que le TTY aussi, les aveugles,
et finalement, le contact oral, simplement de parler?
LISTNUM 1 \l 1468
Alors, au lieu de trois, comme vous le suggérez, est‑ce qu'on ne pourrait
pas en avoir sept?
LISTNUM 1 \l 1469
M. BIBIC : Je cède la parole à monsieur Abbott.
LISTNUM
1 \l 1470
MR. ABBOTT: Good morning,
Mr. Commissioner.
LISTNUM
1 \l 1471
The choice of ‑‑ I'm responding in English, obviously. The choice of having complaints
submitted primarily in writing is a matter of efficiency, it allows the
complainant to turn their mind to the complaint and to present all the facts and
arguments that they believe are relevant and a web form has been provided online
to assist the complainant to be able to provide their
complaint.
LISTNUM
1 \l 1472
Now, your question as I understand it was, what about those who may not
have access to the Internet or may not be able to submit a complaint in writing,
and that is an excellent question.
LISTNUM
1 \l 1473
As the Commissioner, the Interim Commissioner has indicated the
accessibility of the complaints handling process is extremely important both to
the Commissioner and to the members.
LISTNUM
1 \l 1474
And I think it was quite a legitimate observation made by Arch and other
parties that writing may exclude individuals, either because they're illiterate
or they may have some disability that impedes that and, in that respect, the
members have requested that the Interim ‑‑ well, the members plan to amend
the procedures to give the Interim Commissioner, the Commissioner the discretion
to accept complaints in non‑written form in the appropriate
situation.
LISTNUM
1 \l 1475
But I think by and large the basic mode of taking complaints should be in
writing and that will allow the process to be as efficient as
possible.
LISTNUM
1 \l 1476
I would note that the website is W3C‑compliant. So if, for example, a blind user has say
a JAWS Browser that allows the blind to interact with Internet content, they can
indeed hear what the content is and may also have the facility to fill out the
form.
LISTNUM
1 \l 1477
Similarly, we do have TTY capability at the ‑‑ or the CCTS has TTY
capability and in the appropriate circumstances can take, as I mentioned,
complaints in other than written form.
That's certainly a change we plan to make very
soon.
LISTNUM 1 \l 1478
CONSEILLER MORIN : Est‑ce que vous pourriez préciser exactement qu'est‑ce
qu'il en est pour les personnes handicapées, les gens atteints de surdité, et
les aveugles?
LISTNUM 1 \l 1479
Qu'est‑ce qui arrive? Et
pour les gens aussi... par exemple, je pense aux immigrants. Bien, les immigrants, ils ne peuvent pas
nécessairement écrire toujours correctement ou exprimer leur plainte à l'égard
de leur fournisseur de services en télécommunications. Donc, la présentation orale, à ce moment
là, peut être intéressante.
LISTNUM
1 \l 1480
THE CHAIRPERSON: Can I just
add to this. It is somewhat
strange, we are talking about telephone and I can't make a complaint by
telephone.
LISTNUM
1 \l 1481
If I have a problem with Bell, I pick up the phone, sooner or later I
get ‑‑ after waiting half an hour I finally get some live voice and I can
complain with them and can deal with it orally. That is what Commissioner Morin is
saying.
LISTNUM
1 \l 1482
You are saying no, unless you are handicapped we need it in writing. Frankly, I don't quite follow the logic
here.
LISTNUM
1 \l 1483
MR. BIBIC: When you said 30
minutes you meant TELUS, I believe.
‑‑‑ Laughter / Rires
LISTNUM
1 \l 1484
THE CHAIRPERSON:
Whoever. I wasn't trying to
blame anything on Bell.
LISTNUM
1 \l 1485
MR. ABBOTT: Thank you, Mr.
Chairman.
LISTNUM
1 \l 1486
With respect to the original question about what arrangements are
currently in place for people with disabilities and what may be planned, I think
that's most appropriately responded to by the Interim Commissioner as the CCTS
is his organization to run as he sees appropriate.
LISTNUM
1 \l 1487
Well, with respect to complaints primarily being in writing, I think that
it's certainly not an unusual way amongst other complaints handling bodies to
take complaints. It's quite
reasonable to have individuals focus their minds and put forward the facts and
the arguments that they feel are relevant.
I don't see it as a ‑‑ personally don't see it as a significant bar
to submitting a complaint.
LISTNUM
1 \l 1488
And let's remember that the average ‑‑ any consumer can deal with
the CCTS in a number of fashions if they have an inquiry or they need assistance
in submitting their complaint. It's
only the complaint itself that needs to be in writing. They can consult, make inquiries, do
whatever they want orally.
LISTNUM
1 \l 1489
But at this point with respect to arrangements for access by the
particular individuals referenced by Commissioner Morin, I'll turn it over to
Commissioner McKendry.
LISTNUM
1 \l 1490
THE CHAIRPERSON: You haven't
answered my question. You realize
that, of course.
LISTNUM
1 \l 1491
I mean, if I have a problem with the telephone company, whichever one it
be, I won't single out a single one, I can deal with it on the
telephone.
LISTNUM
1 \l 1492
If I deal with the Commissioner of Complaints on telephones, I have to do
it in writing.
Yes, you have got to explain to me
why.
LISTNUM
1 \l 1493
MR. GRIEVE: Well, Mr.
Chairman ‑‑
LISTNUM
1 \l 1494
THE CHAIRPERSON: You are
talking about costs, is that the issue? I mean, if so, say
so.
LISTNUM
1 \l 1495
MR. GRIEVE: No, no, I don't
think it's an issue of costs, it's just a practicality that when we have a
series of processes, if there's no written record of the complaint, then how do
you go to the next stage and the next stage?
LISTNUM
1 \l 1496
It's not like dealing with a service rep on the phone who's going to try
to fix the problem for you right there.
There has to be a record of the complaint so that it can go through all
the processes.
LISTNUM
1 \l 1497
If there's a way to ‑‑ you know, what we'd have to do is, if you
want to take the ‑‑ give the option to everyone to give the complaints
orally, then you have to write it down, you have to make sure it's right, maybe
send it to them, make sure they agree or read it back to them or something like
that.
LISTNUM
1 \l 1498
I think it's a practical matter of having a record of the dispute for the
purposes of going through the process.
LISTNUM
1 \l 1499
MR. BIBIC: So, in cases
where an able bodied complainant with access to all these mechanisms, in those
cases ‑‑ it does relate to costs as well though in terms of if a person is
able bodied has access, the most efficient way of making sure there's a record
and of transmitting the complaint to the TSP is to do it this
way.
LISTNUM
1 \l 1500
Now, recognizing, of course, that there is some constituency that may be
illiterate or disabled, in which case it's an absolutely fair point that there
needs to be accommodation there at some level. And at that level perhaps we can turn it
over to Mr. McKendry.
LISTNUM
1 \l 1501
THE CHAIRPERSON: Mr.
McKendry.
LISTNUM
1 \l 1502
INTERIM CCTS COMMISSIONER McKENDRY:
Thank you. Well, we will do
whatever it takes to help people make complaints.
LISTNUM
1 \l 1503
As Mr. Grieve pointed out, it's important where possible there be a
written record because when a complaint comes up to me for investigation because
it couldn't be resolved between the consumer and the company and the staff have
not been able to facilitate that process, it's important to me to have a clear
written statement from the person that's complaining about what the nature of
their complaint is and what the issues are from their
perspective.
LISTNUM
1 \l 1504
That being said, I do call the complainant in that situation and discuss
their complaint with them to make sure that I have ‑‑ that they feel that
they've captured all of their complaint and what's gone in
writing.
LISTNUM
1 \l 1505
But if somebody for some reason has difficulty to put their complaint in
writing, they have a literacy issue or some other issue, some other disability,
we will do whatever it takes to help them get it into writing, we'll do it for
them if we have to; or, if there needs to be a translator, for example, because
French or English aren't their first language and they feel more comfortable in
another language, we'll get a translator for them too.
LISTNUM
1 \l 1506
So, the bottom line here is whatever needs to be done we'll make sure
it's done but, where possible, we want a written record because it really
facilitates my job when I have to investigate and
adjudicate.
LISTNUM
1 \l 1507
CONSEILLER MORIN : Alors, si j'ai bien compris, Monsieur Grieve, the cost
is no issue as far as the complaints are concerned?
LISTNUM
1 \l 1508
MR. GRIEVE: I'm not
sure...
LISTNUM
1 \l 1509
CONSEILLER MORIN: You have
said that it is not an issue as far as the costs are concerned for the deaf and
blind people.
LISTNUM
1 \l 1510
MR. GRIEVE: I mean, there
will always be cost issues but we're not going to deny access because of a cost
issue, we'll do these ‑‑ make sure there's access and do it in the most
efficient way we can.
LISTNUM
1 \l 1511
My reference before was when the Chair was asking about whether the
requirement for a written record was a cost issue, I said no, it's more an issue
of record keeping than a cost issue.
LISTNUM
1 \l 1512
THE CHAIRPERSON: But can I
sum this up. If I understand what I
have heard it is slightly different than what the documentation says. What Mr. McKendry says, he prefers to
have the complaint written by mail or by fax, by ear, by Internet but, if
necessary, that's a preference, it's not a requirement, he will take complaints
orally and deal with them especially where the person is either handicapped or
has a language difficulty.
LISTNUM
1 \l 1513
Is that a correct summary, Mr. McKendry?
LISTNUM
1 \l 1514
INTERIM CCTS COMMISSIONER McKENDRY:
That's a correct summary and we will help them put it into writing and
ensure it's correct.
LISTNUM
1 \l 1515
And I want to emphasize that in all cases I call the complainant when I
make an investigation to ensure that the written record reflects their true
concerns.
LISTNUM
1 \l 1516
THE CHAIRPERSON: And you
have sufficient operators who take telephone
calls?
LISTNUM
1 \l 1517
INTERIM CCTS COMMISSIONER McKENDRY:
We do at this stage. We have
expanded since we started. We
started with one. Now, we have two
and we are in the process of trying to decide when we should move up to
three.
LISTNUM 1 \l 1518
THE CHAIRPERSON:
Okay.
LISTNUM 1 \l 1519
CONSEILLER MORIN : On parle de réduction de coûts, puis je pense que vous
êtes dans votre droit de surveiller de très près les
coûts.
LISTNUM 1 \l 1520
Est‑ce que les plaintes collectives... parce qu'on parle, par exemple,
d'un condominium où il y aurait un problème de service au niveau d'une
entreprise de télécommunications.
LISTNUM 1 \l 1521
Est‑ce que vous êtes prêt à accepter des plaintes collectives, ce qui
pourrait réduire les coûts, au lieu de 200 appels, 200 plaintes, vous n'en
auriez qu'une? Est‑ce que ça fait
partie, parce que je n'ai rien vu nulle part, mais peut‑être ça fait partie de
vos propositions, dans le fond?
LISTNUM
1 \l 1522
MR. ABBOTT: Commissioner
Morin, if I can respond to that question.
LISTNUM
1 \l 1523
I believe what you are describing is akin to a class action and the rules
of procedure specifically address that, the concept of a class action or one
complaint being brought on the part of multiple
individuals.
LISTNUM
1 \l 1524
The challenge with that is that class actions have a high level
of ‑‑ there are a number of procedures to ensure that in fact the claims
are all the same, that the parties have similar interests, that they arise from
similar facts.
LISTNUM
1 \l 1525
The procedural safeguards required to properly conduct a class action or
representative type of action are significant and don't really fit within the
more informal consumer‑friendly Procedural Code that has been developed for the
CCTS.
LISTNUM 1 \l 1526
CONSEILLER MORIN : Mais je n'en suis pas au recours collectif. Le mot " recours collectif ", c'est vous
qui l'utilisez.
LISTNUM 1 \l 1527
Je parle d'une plainte dans un édifice de 200 appartements qui ont
exactement le même problème, et au lieu d'envoyer 200 plaintes, d'encombrer le
commissaire, on en envoie qu'une qui traite du problème qu'a rencontré
l'ensemble des propriétaires du condominium relativement à la compagnie. Je ne parle pas de recours, je parle
d'une plainte.
LISTNUM 1 \l 1528
M. BIBIC: Si c'était une
plainte qui aurait... une plainte qui pourrait devenir ou serait en nature d'un
recours collectif, la réponse, vous l'avez.
LISTNUM 1 \l 1529
Si c'est une question des mêmes... des faits assez spécifiques qui
s'appliquent à plusieurs abonnés, j'imagine que ça serait possible, dans
certains cas, pour le commissaire d'examiner la plainte. Mais une fois qu'il y aurait question
que cette plainte là pourrait devenir une question à un recours collectif, ça
serait complètement inapproprié.
LISTNUM 1 \l 1530
CONSEILLER MORIN : Le CRTC dispose d'une procédure accélérée pour traiter
les plaintes lorsqu'il y a des questions urgentes comme le débranchement, par
exemple.
LISTNUM 1 \l 1531
Est‑ce que vous avez prévu une procédure accélérée dans votre projet pour
répondre aux plaintes des consommateurs?
LISTNUM 1 \l 1532
M. BIBIC : Dans ces cas‑là, il ne faut pas oublier non plus que le
premier point de contact pour le consommateur ou l'abonné serait, sans doute, le
fournisseur directement, et on espère que, dans la grande majorité des cas, le
problème serait corrigé de cette façon.
LISTNUM 1 \l 1533
Mais une fois que la plainte se doit d'être élevée au niveau de
l'organisme, on est d'avis qu'on a établi des procédures qui seront efficaces et
quand même assez rapides.
LISTNUM 1 \l 1534
Dans certains cas...
LISTNUM 1 \l 1535
Peut‑être je pourrais céder la parole à monsieur McKendry pour expliquer
ce qu'il ferait dans ces cas là.
LISTNUM
1 \l 1536
INTERIM CCTS COMMISSIONER McKENDRY:
Well certainly, if there was a degree of emergency about the situation we
would try and deal with it more quickly than we would
otherwise.
LISTNUM
1 \l 1537
We do not have an explicit procedure in place but remember, when you
contact us, you reach a real person and if that real person is seized of the
fact that this is an emergency or an extremely critical situation, they would
bring it to Mr. Paul's attention and to my attention and certainly we are
perfectly capable of dealing with it on an urgent basis.
LISTNUM
1 \l 1538
It doesn't have to go into a queue and wait till we have done the other
things that are ahead of it if there is some reason we should deal with it right
away.
LISTNUM
1 \l 1539
COMMISSIONER KATZ: Mr.
McKendry, on that issue, the likelihood is that people who are about to be
disconnected would likely use the last recourse they have, which would be the
CCTS, to call up and say the phone company or the provider is about to cut me
off of whatever service. Let's
assume they are literate and have got all the skills and capabilities to explain
themselves.
LISTNUM
1 \l 1540
Would the response back be please put it in writing and we will take a
look at it when it comes in the mail or would you have an expedited process to
look at it, take it over the phone and deal with it on a timely
basis?
LISTNUM
1 \l 1541
INTERIM CCTS COMMISSIONER McKENDRY:
If we were seized of the fact that it is an emergency and an urgent
situation, we would ask that it be put in writing but we would immediately
contact the company to see what the situation was and what could be done about
it.
LISTNUM
1 \l 1542
MR. BIBIC: Commissioners, we
certainly understand the nature of the questions and they are good questions and
they are positing situations that are worst‑case scenarios but we are certainly
all entering this thing with the best of intentions to resolve
problems.
LISTNUM
1 \l 1543
Obviously, we think it is critical for an organization like this to have
firm procedures so that everybody knows what the rules of engagement are going
to be, recognizing that this thing has to be flexible enough to address concerns
as they arise because we can't predict every single eventuality as we sit here
today.
LISTNUM 1 \l 1544
CONSEILLER MORIN : Mais ce que je veux dire actuellement, c'est que vous
n'avez pas, comme telle, prévu une procédure accélérée, pour le moment? Ça fait du sens peut‑être d'en avoir
une, mais pour le moment, il n'y a rien d'arrêter à ce niveau là, c'est ce que
vous nous dites?
LISTNUM 1 \l 1545
M. BIBIC : On n'a pas de procédure formelle de cette façon, vous avez
raison, et la plupart des plaintes peuvent être examinées ou analysées selon les
procédures qui ont été établies jusqu'à date.
LISTNUM 1 \l 1546
CONSEILLER MORIN : En ce qui concerne le commissaire des plaintes, est‑ce
que le commissaire aura le droit d'enquêter, de faire des recommandations à
l'égard d'enjeux systémiques, disons, de contrats douteux, de pratiques de
prix?
LISTNUM 1 \l 1547
Jusqu'à quel point il aura la liberté de faire ça? Pour autant que le modèle que vous
proposez serait accepté là, avec le deux tiers, est‑ce que le commissaire pourra
faire exécuter, parce que c'est un peu le mandat aussi du commissaire des
plaintes que de voir un peu en avant qu'est‑ce qui se dessine selon
l'information qu'il a ou qu'il n'a pas?
‑‑‑ Pause
LISTNUM
1 \l 1548
MR. BIBIC: Mr. Morin, I
think this would be a similar issue to the discussion we had a little bit
earlier before the break about the expansion of the
mandate.
LISTNUM
1 \l 1549
In terms of trends, the way we have designed the CCTS now, the TSP would
ask the CCTS to initiate an examination or identify a trend, and again, it is
for the same fundamental reason that it will be a fruitless identification or a
fruitless examination if the industry doesn't buy into the issue. So that would be kind of an answer at
one level.
LISTNUM
1 \l 1550
The second part of my answer would be that when it comes to the
identification of trends, the primary concern we would have is that the trends
relate to industry trends and not trends within one particular provider and the
trends would have to be with respect to questions that are within the mandate of
the CCTS, within its scope and not things that are outside its scope, for
example, broadcasting trends.
For example,
broadcasting is not within the CCTS' scope.
LISTNUM 1 \l 1551
CONSEILLER MORIN : Mais je voudrais vous soumettre, simplement, deux
faits.
LISTNUM 1 \l 1552
Je pense que vous avez commandé un sondage, et ce sondage, auprès de
l'ensemble du public canadien, révèle que 90 pour cent des Canadiens voudraient
que le commissaire des plaintes, l'ombudsman des consommateurs, puisse se livrer
à de telles initiatives.
LISTNUM 1 \l 1553
Le deuxième point, c'est que c'est la volonté du gouvernement de mettre
en place une agence, ce commissaire indépendant de l'industrie, qui n'aurait pas
à demander trop de permissions, si vous me permettez, entre parenthèses, à
l'industrie pour initier ou, enfin, développer son mandat.
LISTNUM 1 \l 1554
C'est deux faits que je soumets à votre attention. Je ne sais pas si vous avez des
commentaires là‑dessus.
LISTNUM 1 \l 1555
M. BIBIC : En ce qui concerne le sondage, je crois que vous faites
référence à un sondage qui a été fait en 2005 pour TELUS, Bell Canada et
PIAC.
LISTNUM 1 \l 1556
CONSEILLER MORIN : Mm‑hmm.
LISTNUM 1 \l 1557
M. BIBIC : Il faudrait que j'examine le sondage. Je ne l'ai pas devant moi, et je ne me
souviens pas de toutes les particularités ou les détails du
sondage.
LISTNUM 1 \l 1558
En ce qui concerne le mandat, en général, de l'organisme, on ne croit
pas, on n'est pas d'accord que le gouvernement avait l'intention de créer un
autre organisme réglementaire pour remplacer... ou pas remplacer, en plus du
CRTC.
LISTNUM 1 \l 1559
On croit que le gouvernement exige qu'il y ait une façon efficace de
répondre aux plaintes des consommateurs, et on croit fermement que cet objectif
là a été accompli avec la création du CCTS.
LISTNUM 1 \l 1560
CONSEILLER MORIN : J'aimerais avoir quelques précisions sur votre rapport
annuel, ce qu'il contiendra.
LISTNUM 1 \l 1561
Peut‑être votre réflexion n'est pas à ce niveau‑là jusqu'ici, mais je
suis allé sur le site australien, et on donne pas mal d'information, suivant les
compagnies, suivant le niveau de résolution du problème. Soit qu'on est à l'étape un, où il y a
une plainte qui est adressée au commissaire, qui la retourne à la
compagnie. Ça, c'est le niveau
un.
LISTNUM 1 \l 1562
On constate aussi que la plupart, la grande majorité des plaintes sont
résolues au niveau un, mais il y en a quand même quatre, et on peut voir que
certaines compagnies prennent plus de temps que d'autres relativement à résoudre
le problème.
LISTNUM 1 \l 1563
J'aimerais savoir si, à votre avis, on devrait avoir, dans le rapport
annuel ou sur le site internet, ce genre d'information où on aurait tout le
détail des différentes entreprises de télécommunications au Canada, avec le
nombre de plaintes qui sont faites chaque année pour chacune des compagnies, et
l'étape de résolution, autrement dit, est‑ce qu'elles sont résolues très
rapidement ou si ça prend du temps?
LISTNUM 1 \l 1564
Est‑ce que ce genre d'information là, vous verriez ça d'un bon oeil dans
le rapport annuel du commissaire des plaintes?
LISTNUM 1 \l 1565
M. BIBIC : Je vais demander à monsieur McKendry de répondre parce
qu'aucun des membres a l'intention d'avoir une influence indue ou de rédiger ou
de contrôler ce qui va être dans le rapport annuel. Donc, je vais demander à monsieur
McKendry de répondre.
LISTNUM 1 \l 1566
INTERIM CCTS COMMISSIONER McKENDRY:
Thank you.
LISTNUM
1 \l 1567
If I understand the question correctly, certainly, statistical analysis
of complaints is something that I would anticipate the permanent commissioner
would want to include in the annual report and the statistical analysis would be
around the types of complaints, the numbers of complaints, subject matters of
the complaints and so on.
LISTNUM
1 \l 1568
In terms of performance standards in dealing with complaints, we have set
out time limits for companies to respond and deal with complaints and so
on. I expect that we would report
on that as well. We track that
information.
LISTNUM
1 \l 1569
I am not sure whether that completely answers your question or
not.
LISTNUM 1 \l 1570
CONSEILLER MORIN : Ce que je veux dire, c'est que les tableaux... Vous avez, sans doute, consulté le site
du TIO australien.
LISTNUM 1 \l 1571
Est‑ce que ce genre de tableau, avec les quatre étapes et chacune des
compagnies, suivant le nombre de plaintes qui ont été faites pour chacune des
entreprises, est‑ce que vous seriez confortable...
LISTNUM 1 \l 1572
Dans l'intérêt du consommateur... moi, je suis l'abonné d'une compagnie
Clear Networks, par exemple, en Australie.
Bien, il y a eu 70 plaintes.
Il y en a eu 50 qui ont été résolues au premier niveau, 13 au deuxième
niveau, puis finalement, à la fin, toutes les plaintes ont été résolues au
niveau quatre. Cette compagnie là,
semble‑t‑il, s'organise pour que les plaintes soient traitées effectivement,
puis qu'on s'entende.
LISTNUM 1 \l 1573
Si les Canadiens avaient ce genre de tableau qui apparaît sur le site du
TIO australien, bien, on aurait tout de suite une image de Bell, de TELUS,
jusqu'à quel point ça vaut la peine de s'adresser au commissaire des plaintes et
jusqu'à quel point l'entreprise s'efforce de résoudre le problème qu'elle a avec
un certain nombre de plaintes.
LISTNUM 1 \l 1574
Je pense que c'est assez indicatif, finalement, pour le consommateur
quand il a à choisir une compagnie ou une autre. Il sait que s'il a une plainte, bien,
s'il fait partie de la moyenne, ça va se résoudre assez facilement son
problème.
LISTNUM 1 \l 1575
Est‑ce que, donc, ce genre d'information là, ce serait quelque chose qui
vous rendrait confortable?
LISTNUM
1 \l 1576
MR. McTAGGART: Commissioner
Morin, if I could, I am happy to be able to tell you that what you are referring
to is very much in line with what the Members view the annual report looking
like and in fact on this particular point the Governor in council has given very
specific direction and we have implemented that direction in the
documentation.
LISTNUM
1 \l 1577
The order in council requires the organization to publish an annual
report on the nature, number and resolution of complaints received for each
telecommunication service provider, the implication being TSPs that are Members
of the organization, and I think what you have described, a list of Members, the
nature of the complaints, the level at which they have been resolved, we do
contemplate a somewhat similar four‑level
process.
LISTNUM
1 \l 1578
So I think the Members are comfortable with an annual report that would
look very much like you have described, without having the document in front of
me.
LISTNUM
1 \l 1579
INTERIM CCTS COMMISSIONER McKENDRY:
And, Commissioner, we are tracking the information since we have started
that would enable us to do that.
LISTNUM 1 \l 1580
CONSEILLER MORIN : Donc, est‑ce que... aussi, je regardais sur le site
australien. Je vous donne ça parce
qu'on le voit. Ils ont, par
exemple, des descriptions de cas avec des entreprises.
LISTNUM 1 \l 1581
Est‑ce que ce genre de choses là aussi pourrait faire partie du rapport
annuel?
LISTNUM
1 \l 1582
MR. McTAGGART: On that point
I can answer that, as I described earlier, the intention is that final decisions
of the commissioner are made public.
For instance, they would be posted on the website and therefore become
public information, identifying the TSP but never the complainant for privacy
reasons.
LISTNUM
1 \l 1583
I think it would be open to the commissioner to look upon the body of
decisions made in the previous year and highlight them in the annual
report.
LISTNUM
1 \l 1584
THE CHAIRPERSON: I presume
nothing prevents him from generalizing, saying we have received this type of
complaint, from where it is coming and this is how we resolved it, respecting
people's privacy and their identity.
LISTNUM
1 \l 1585
But I presume, Mr. McKendry, you will give sort of a generic description
of what you have done and how you have resolved it?
LISTNUM
1 \l 1586
INTERIM CCTS COMMISSIONER McKENDRY:
Yes, and I think it could be useful to have some examples of complaints
we have dealt with, assuming they are not at the binding decision stage, without
mentioning the company or the individual involved because I think they can be
helpful to readers of the annual report to understand how we operate and some of
the issues that we are facing.
LISTNUM 1 \l 1587
CONSEILLER MORIN : Je peux comprendre, donc, en fait, que vous êtes pour
la transparence et qu'on pourra s'attendre éventuellement à un rapport annuel où
toutes ces choses là seront évoquées dans beaucoup de
détail.
LISTNUM 1 \l 1588
Un point que j'aimerais souligner, mais je ne sais pas si vous avez un
point de vue là‑dessus, si une entreprise systématiquement ‑‑ je présume
que ce serait la minorité chez vous ‑‑ ne collabore pas avec le commissaire
aux plaintes, comment vous entendez traiter de la question, rendre compte de la
question dans le rapport annuel?
LISTNUM 1 \l 1589
Déjà, si vous publiez ces chiffres, on aura déjà une certaine idée de la
réticence de certaines entreprises à traiter des plaintes, mais si... parce que
c'est un modèle volontaire pour l'instant.
Si une entreprise ne collabore pas avec le commissaire aux plaintes,
qu'est‑ce qui se passe?
LISTNUM 1 \l 1590
Comment verriez‑vous le commissaire des plaintes rendre compte de cette
situation, parce que, au final, c'est le consommateur qui pourrait en payer la
facture?
LISTNUM
1 \l 1591
MR. McTAGGART: Commissioner
Morin, that is something that the Members have made specific provision for in
the documents.
LISTNUM
1 \l 1592
First, as a general matter, by agreeing to join the CCTS, the TSP Members
commit to abide by the decisions of the commissioner, in fact, without a right
of appeal. It is a very solemn
promise.
LISTNUM
1 \l 1593
If a Member is consistently uncooperative with the CCTS investigators,
for example, at the investigation stage, that information would make its way to
the board and there is provision for specific disciplining of TSP
Members.
LISTNUM
1 \l 1594
If a Member refuses to abide by a decision rendered by the commissioner,
that, as a corporate matter, constitutes an event of default and puts that TSP
Member at risk of expulsion from the corporation.
LISTNUM
1 \l 1595
But looking at the issue from the consumer's perspective, I can tell you
that, again, we made specific provision in the documentation that if the
commissioner makes an award against a TSP Member but the TSP Member refuses to
abide by it, the other TSP Members or the corporation itself can in fact give
the consumer the requested remedy if that is possible and then pursue the matter
against the Member itself.
LISTNUM
1 \l 1596
So we have tried to provide a remedy for the consumer as much as we can
in that unlikely event.
LISTNUM 1 \l 1597
M. BIBIC : Aussi, Monsieur Morin...
LISTNUM 1 \l 1598
CONSEILLER MORIN : Dans les services qui sont sous la portée du...
excusez.
LISTNUM 1 \l 1599
M. BIBIC : Je veux juste ajouter un petit point, Monsieur
Morin.
LISTNUM 1 \l 1600
C'est que le fournisseur doit absorber les coûts des enquêtes du CCTS, et
les coûts deviennent... les coûts sont élevés. Ça devient plus dispendieux à chaque
niveau de l'enquête.
LISTNUM 1 \l 1601
Donc, si un fournisseur ne collabore pas, et, à chaque fois, la plainte
doit se rendre au dernier niveau, qui est une décision formelle du commissaire,
les coûts du fournisseur vont être plus élevés en comparaison avec les coûts de
ses collègues au sein de l'organisation.
LISTNUM 1 \l 1602
CONSEILLER MORIN : Toujours sur le site internet, on voit qu'il y a des
services qui sont en dehors de la portée du commissaire pour ce qui concerne les
plaintes.
LISTNUM 1 \l 1603
Là, je vois, par exemple ‑‑ j'ai du mal à comprendre ‑‑ le
prix, ce ne serait pas l'objet d'une plainte. Alors, on a le prix. On a les plaintes... les services
d'urgence, ça ne ferait pas partie des sujets possibles de plaintes. Il y a aussi le télémarketing ou
messages non sollicités. On en a
parlé un peu plus tôt ce matin.
LISTNUM 1 \l 1604
Mais est‑ce que ces choses là sont révisibles? Est‑ce que le prix pourra être l'objet
d'une plainte?
LISTNUM 1 \l 1605
M. BIBIC : Bien, en ce qui concerne le prix, les prix doivent être
établis...
LISTNUM 1 \l 1606
CONSEILLER MORIN : Par contrat.
LISTNUM 1 \l 1607
M. BIBIC : ...par le marché.
LISTNUM 1 \l 1608
CONSEILLER MORIN : O.K.
LISTNUM 1 \l 1609
M. BIBIC : C'est le marché qui détermine les prix. Ça ne serait pas approprié pour un
consommateur de se présenter auprès du CCTS et dire que : Je veux payer $15 pour
mon service internet et non $20.
Pourriez‑vous nous donner votre avis, Monsieur le
Commissaire?
LISTNUM 1 \l 1610
Par contre, si le consommateur se présente auprès du commissaire et
indique que : On m'a promis de me facturer $15, et, en effet, on m'a facturé
$20, et ce n'est pas l'engagement dès le début, bien là, le commissaire
pourrait, bien évidemment, résoudre le problème en indiquant que la preuve est
que vous lui avez promis $15 et non $20, il faut faire un
remboursement.
LISTNUM 1 \l 1611
Donc, le prix tel quel n'est pas dans le mandat du CCTS, mais la
facturation l'est.
LISTNUM 1 \l 1612
En ce qui concerne les services d'urgence et le télémarketing, je
demanderais à monsieur Abbott de répondre à votre
question.
LISTNUM
1 \l 1613
MR. ABBOTT: Before I answer
that question, perhaps if I could give a bit of an overview that might help
you ‑‑
LISTNUM
1 \l 1614
THE CHAIRPERSON: Could we
try to be a bit more precise in our answers? We are really running out of
time.
LISTNUM
1 \l 1615
MR. ABBOTT:
Certainly.
LISTNUM
1 \l 1616
THE CHAIRPERSON: So just
answer the question, please.
LISTNUM
1 \l 1617
MR. ABBOTT: All right, I
will answer the specific question.
LISTNUM
1 \l 1618
Emergency services like 9‑1‑1 are directly regulated by the CRTC and we
have focussed on forborne telecommunication services. Complaints relating to them will be
handled by the CCTS.
LISTNUM 1 \l 1619
CONSEILLER MORIN : Il y en a un autre que je n'ai pas évoqué, mais
pratiques générales d'opération non couvertes dans les contrats ou les
engagements avec le client. C'est
une porte ouverte. Je ne le sais
pas, ça m'apparaît...
LISTNUM 1 \l 1620
Est‑ce que ça, ça ne pourrait pas être l'objet de plaintes, les pratiques
générales d'opération? Puis là,
vous indiquez non couvertes. Si les
pratiques générales sont couvertes, pourquoi... en tout
cas.
LISTNUM 1 \l 1621
M. BIBIC : Si on décide comme fournisseur qu'on va envoyer un technicien
chez l'abonné dans une période... un délai de 24 heures ou de sept heures ou de
12 heures, c'est à nous de déterminer et non au commissaire, au CCTS de
déterminer ce que seraient nos pratiques d'opération, et voilà pourquoi on exige
que ces pratiques là ne soient pas dans le mandat du
CCTS.
LISTNUM 1 \l 1622
Je vous donne un exemple très concret pour répondre à la question
rapidement.
LISTNUM 1 \l 1623
CONSEILLER MORIN : Dernière question.
LISTNUM 1 \l 1624
Vous vous donnez un mandat aujourd'hui, mais on sait ‑‑ et ce n'est
pas moi qui vais vous l'apprendre, hein! ‑‑ que le monde des
télécommunications évolue rapidement, et caetera.
LISTNUM 1 \l 1625
Est‑ce que, actuellement, vous avez prévu formellement une révision du
mandat du commissaire aux plaintes, parce que ce serait peut‑être bien qu'il y
ait quelque chose de prévu, que le mandat puisse être révisé éventuellement, et
dans quel délai, est‑ce que c'est dans 10 ans ou on n'ouvre pas la porte du tout
à une révision du mandat?
LISTNUM
1 \l 1626
MR. McTAGGART: Commissioner
Morin, I will give the basic answer, which is that we have not made explicit
provision for a review of the mandate.
LISTNUM
1 \l 1627
That being said, I referred earlier to the means by which the fundamental
documents of the organization, including the procedural code where its mandate
is to find ‑‑ there is a procedure for amending those documents but it is
one of the matters that requires a very high level of concurrence among the
voting members.
LISTNUM
1 \l 1628
But if at some point down the road the members feel that they would
derive benefit from providing their consumers access to the CCTS with respect to
new services or matters, then I don't think there would be any hesitation to
take advantage of the CCTS at that point.
LISTNUM 1 \l 1629
M. BÉLAND : Monsieur le Président, j'aimerais juste noter qu'on n'a pas
répondu à la question de monsieur Morin sur le télémarketing. Je sais que c'est une des questions
précises que le Conseil a posées.
LISTNUM
1 \l 1630
THE CHAIRPERSON: I am coming
there.
LISTNUM 1 \l 1631
M. BÉLAND : Je suis prêt à répondre.
LISTNUM
1 \l 1632
THE CHAIRPERSON: I am coming
there. So a couple of things.
LISTNUM
1 \l 1633
Your position is that the Commissioner should only deal with forborne
services, right, and not with regulated services. And I just want to understand that. I just want to understand the
practicality. For if the consumer
doesn't know what he is complaining about, is it a forborne service or
not?
LISTNUM
1 \l 1634
So Mr. McKendry, have I understood it correctly? Somebody complains to you, you do first
a triage to see whether it is forborne or not? If it's not forborne presumably you send
it to us and say this is part of the regulated service. But you are not sending ‑‑ I hope
you are not sending it back to the consumer but you are telling the consumer,
"This is actually a matter that is within the CRTC's purview. We have sent your complaint
forward. You will hear from them"
rather than saying, "No, this is not mine.
Go to the CRTC".
LISTNUM
1 \l 1635
Is that how you handle it?
LISTNUM
1 \l 1636
INTERIM CCTS COMMISSIONER McKENDRY:
When a consumer calls in that situation we refer them to the CRTC. We don't forward their complaint to the
CRTC and, similarly, we would refer them to other bodies. If, for example, it was a privacy
complaint we would refer them to the privacy commissioner and we would tell them
how to get in touch with the CRTC or the privacy
commissioner.
LISTNUM
1 \l 1637
THE CHAIRPERSON: Yes, that's
assuming that it is a live voice, but since you want to have most of your
complaints in written format ‑‑ so assume you get a fax or something like
that, what is your ‑‑ what are you doing then?
LISTNUM
1 \l 1638
INTERIM CCTS COMMISSIONER McKENDRY:
We reply in writing with the same information to the consumer that we
would had they called in.
LISTNUM
1 \l 1639
THE CHAIRPERSON: Why are you
being so unhelpful? Why would you
not send the complaint directly to us and tell the consumer, "This is actually a
matter for the CRTC. We have
forwarded it to the CRTC".
LISTNUM
1 \l 1640
INTERIM CCTS COMMISSIONER McKENDRY:
Well, the problem is we are not sure that that is what the consumer would
want us to do and we wouldn't want to act on the consumer's behalf without an
instruction from them.
LISTNUM
1 \l 1641
And secondly, there is a privacy issue in terms of distributing personal
information we have received to another body.
LISTNUM
1 \l 1642
THE CHAIRPERSON:
Okay.
LISTNUM
1 \l 1643
Mr. McTaggart, did you want to add something too?
LISTNUM
1 \l 1644
So it's the privacy that is preventing you from it?
LISTNUM
1 \l 1645
INTERIM CCTS COMMISSIONER McKENDRY:
I would say it is certainly privacy and not distributing personal
information that we haven't been authorized to distribute by the
individual. But it's also the
individual hasn't asked us to do it either.
LISTNUM
1 \l 1646
THE CHAIRPERSON: But he
wants his complaint resolved. He is
turning to you for help and rather than sending the complaint to the person who
can hopefully resolve it you are turning it back to them. I don't quite understand where the
privacy is here. The consumer has
already shared his complaint with you.
So clearly he wants this issue resolved.
LISTNUM
1 \l 1647
INTERIM CCTS COMMISSIONER McKENDRY:
He shared personal information with us for the specific purpose of having
CCTS deal with that. That's what he
or she gave their consent to. They
didn't, when they approached us, consent to us giving that personal information
to another party. And in order to
protect their privacy and, I would think, to be consistent with the privacy
legislation as well, unless they give specific consent for us to distribute the
information to ‑‑ their personal information to another party, we shouldn't
do that and we don't do that.
LISTNUM
1 \l 1648
But we do try and be helpful.
We do try and ‑‑ we do point out to them who we think they should be
in touch with if they want to.
LISTNUM
1 \l 1649
THE CHAIRPERSON: But if you
adopted a procedure along the way that I suggested, and we sanctioned that
procedure, surely in that case you have all the protection that you need because
the consumer by going there is buying into your mandate and your mandate
specifically specifies that you will refer those complaints that are not within
your limit over to us.
LISTNUM
1 \l 1650
INTERIM CCTS COMMISSIONER McKENDRY:
Well, there would have to be a mechanism in place for the individual to
give their express consent for us to distribute the personal information to
another body.
LISTNUM
1 \l 1651
I suppose we could set up a procedure for that. It would have to be a written
procedure. It seems to me ‑‑
my first reaction to it is that that would be cumbersome and, in fact, it might
be easier for the consumer to just know where to go and go there rather than
have us doing it for them and obtaining their express
consent.
LISTNUM
1 \l 1652
THE CHAIRPERSON: Well, he
obviously doesn't know where to go.
Otherwise, he wouldn't have come to you in the first
place.
LISTNUM
1 \l 1653
INTERIM CCTS COMMISSIONER McKENDRY:
Well ‑‑
LISTNUM
1 \l 1654
THE CHAIRPERSON: That's not
part of your mandate.
LISTNUM
1 \l 1655
INTERIM CCTS COMMISSIONER McKENDRY:
Well, I guess what I am saying is that; one, we are happy to tell them
where they should be going. That's
the service we can provide. And
two, without their consent to distribute that information to somebody else, we
can't do it. I suppose a procedure
could be put in place to obtain their written consent or their informed consent,
but we don't have that procedure in place now. I would have to think about how we would
actually do that.
LISTNUM
1 \l 1656
COMMISSIONER KATZ: Mr.
McKendry, do we not today, the CRTC, routinely refer calls that come to us
direct to you for complaints that are in the nature of CCTS
complaints?
LISTNUM
1 \l 1657
INTERIM CCTS COMMISSIONER McKENDRY:
Subject to Mr. Paul expanding on what I'm about to say, my impression is
that people that call you are told they can get in touch with us and given the
number. They are not ‑‑ the
complaint itself isn't transferred to us.
LISTNUM
1 \l 1658
THE CHAIRPERSON: Which takes
me to the second issue, which is do not call. That's obviously one of the great
concerns of consumers right now and, as you know, there is specific legislation
for starting up a do not call list and then for
investigation.
LISTNUM
1 \l 1659
One of the questions we ask whether ‑‑ given your expertise, given
your knowledge of the consumer, given hopefully the visibility that you will
have as you get going, wouldn't it make sense to be one‑stop shopping for those
complaints to be investigated by you as well? Obviously, that should not be paid for
by the TSPs. They are going to have
to find a separate funding mechanism but, in effect, a separate activity but
very akin to it.
LISTNUM
1 \l 1660
I gather the absolute unanimous response is "No". Can somebody explain to me
why?
LISTNUM
1 \l 1661
MR. BÉLAND: Sure, I will
explain briefly.
LISTNUM
1 \l 1662
Our concern, basically, is that the nature of the complaint is very
different in the case of telemarketing than in the case of other complaints that
would be before the Commissioner and the types of skills that are needed to
investigate ‑‑ pursue ‑‑ to resolve that complaint are very different
as well.
LISTNUM
1 \l 1663
So once again, the body that we have established here is focussed
resolutely on a retail relationship between a provider and a consumer and they
have a disagreement about how that contract is functioning and should be
interpreted in a particular case.
LISTNUM
1 \l 1664
In a telemarketing complaint context you have a consumer who ‑‑ that
some third party is trying to contact or bother him and so you are no longer
resolving an issue between two parties.
You are trying to figure out who, to begin with this third party is,
that's trying to bother one of these parties passing through whom ‑‑ may be
passing through multiple telecommunications providers to get to the consumer,
possibly even concealing ‑‑ actively concealing their identity. Let's be frank. That happens in telemarketing, things
like calling ID, spoofing and so on.
LISTNUM
1 \l 1665
So the nature of the complaint is different. It doesn't touch the contractual
relationship between the provider and the consumer. The investigation of the complaint
requires much different skills.
LISTNUM
1 \l 1666
To give you an example, the two companies that I have worked in
personally; telemarketing complaints often tend to land on our security
department which is a department that is staffed to a large extent by retired
police officers. I don't think Mr.
McKendry is hiring a lot of retired police
officers.
LISTNUM
1 \l 1667
So the skills are different, the investigation is different and then, of
course, as you mentioned, I don't think the ‑‑ it's clear that
telecommunication service providers wouldn't want to pay for that activity and
it's clear to me as well that the telemarketers wouldn't want us having the
responsibility of determining necessarily how that activity is undertaken
either, to see their point of view.
LISTNUM
1 \l 1668
THE CHAIRPERSON: Okay. On telemarketing, a somewhat tangential
issue but just you were both aware, you and Mr. Grieve, when we had the
essential services hearing a week ago, and to my great surprise I found out that
there may be sort of a technological solution to this.
LISTNUM
1 \l 1669
In effect, one of your competitors had said that they offer this
service. You get a list of all the
telemarketers locally. You check
off the ones you don't want to be called from. They block those numbers and then you
have the facilities. You get
another call from somebody whom you don't like, you just push "*22" or whatever
it is, and that number also gets blocked.
They offer that service.
LISTNUM
1 \l 1670
Is either one of your companies offering something like that? In effect, the consumer, rather than
having an agency, every time the consumer gets a call he deals with this
issue.
LISTNUM
1 \l 1671
MR. BIBIC: I am going to, if
you will permit me, get back to you on that
one.
LISTNUM
1 \l 1672
All I can say is when one party professed to have created this
magnificent innovation, I received an e‑mail from one of my colleagues saying,
we have had this for 15 years. But
that is a very general answer.
LISTNUM
1 \l 1673
I didn't pursue any further, so I am going to get an answer to that very
specific question, if possible.
LISTNUM
1 \l 1674
THE CHAIRPERSON: It has
nothing to do with this hearing. It
is just for our general information in terms of what is there technologically to
solve some of the issues we deal with.
I would appreciate it if you both could get right back to me on
that.
LISTNUM
1 \l 1675
MR. McTAGGART: We will do
that.
LISTNUM
1 \l 1676
THE CHAIRPERSON: Thank
you.
LISTNUM
1 \l 1677
The only other point I think we need to cover is remedies. When I look at what you are proposing,
it is remedies of up to $1,000, while most other intervenors suggest, first of
all, it should be $10,000.
LISTNUM
1 \l 1678
The other thing is you have a provision of saying a pre‑existing
limitation of liabilities identified will be honoured. I don't quite understand what that means
because, as I understand it, the compensation on pre‑existing contracts is
usually limited to a very small amount.
So, would that not make any compensation that the Commissioner can award
really be a bit illusory, that most of the times the contract limitation would
apply.
LISTNUM
1 \l 1679
MR. BIBIC: Those are two
separate issues that do merge together.
LISTNUM
1 \l 1680
THE CHAIRPERSON: Have I
mixed them up?
LISTNUM
1 \l 1681
MR. BIBIC: You haven't. They are two separate issues that do
merge together at some point.
LISTNUM
1 \l 1682
On the limitation of liability, I think as I mentioned before in response
to a question, the appropriate level of those limitations of liability should be
determined by the market. Courts
enforce them. The CRTC, in the
regulated terms of service, there are limitations of liability, and we don't
think it is for the CCTS to displace those. So, that is on the limitation of
liability.
LISTNUM
1 \l 1683
Putting that aside, going to the $1,000 limit, the members have
contractually engaged themselves to allow the Commissioner to investigate
complaints and to make recommendations for compensation up to $1,000; in
essence, recommend that a resolution be put forward that goes over and above
what may be contained within the four corners of the contract between the
provider and the customer.
LISTNUM
1 \l 1684
THE CHAIRPERSON: So those
have become ‑‑
LISTNUM
1 \l 1685
MR. BIBIC: They could
be.
LISTNUM
1 \l 1686
Then it is up to the provider to decide, in this particular case, let's
not enforce the strict terms of the contract; let's make this particular
customer happy, let's accept the recommendation, in which case, when that is
done, the matter is over. This is
also one of the reasons why the procedures have been set up such that those
decisions, so a recommendation that goes beyond the four corners of the contract
that gets accepted by both sides, we suggest shouldn't be made public because
publication will act as a disincentive to accept these
recommendations.
LISTNUM
1 \l 1687
In cases where the complainant or the TSP doesn't accept the
recommendation, and it goes to a formal decision stage, because then it is
binding, it is at that point that we feel the Commissioner or the CCTS should be
making rules based on the contract.
LISTNUM
1 \l 1688
Back to the recommendation stage, if we get to levels that are above
$1,000 and get to $5,000 or $10,000, we are getting into a financial territory
where it is more akin to small claims court and there are procedural safeguards
and procedural trappings there that protect both sides, which we think should be
appropriate, if that is the kind of thing that is
envisioned.
LISTNUM
1 \l 1689
THE CHAIRPERSON: I am
confused here. We are going to the
decision stage. He made a
recommendation that is not accepted.
He then makes a decision.
The decision is you should pay ‑‑ let's say he stays within the
$1,000 ‑‑ he says pay them $900, but the limitation of liability is
actually much lower, what happens?
Does the TSP have to pay the $900, or can it say, no, under that contract
the maximum amount that I am liable for is $50, so I will pay
$50.
LISTNUM
1 \l 1690
MR. BIBIC: It would be the
latter, keeping in mind, however ‑‑ this is an important
point.
LISTNUM
1 \l 1691
THE CHAIRPERSON: That is
exactly my point. So his award is
illusory.
LISTNUM
1 \l 1692
MR. BIBIC: It is not
illusory, Mr. Chairman. If the
customer went to court, unless the contract were invalid, the Court would
enforce the contract. I don't think
that the Order in Council was suggesting that the CCTS should make awards which
displace contractual rights of either party in those
circumstances.
LISTNUM
1 \l 1693
THE CHAIRPERSON: No, but he
is primarily a problem resolver.
You have chosen him, together with the other members. He tries to work something out, and that
will be 90 per cent of the time, we know that.
LISTNUM
1 \l 1694
The few times where he actually has to make a decision, he does it based
on his best understanding of the situation, having looked at all of the
factors. There you say, TSP, we are
not obligated to abide by it, but, however, the decision is over the limit, so
we will only pay the liability limit.
LISTNUM
1 \l 1695
That is lousy public relations, but having set up this, having gone
through it, since you put the limit relatively low, at $1,000, shouldn't you at
least live up to that limit?
LISTNUM
1 \l 1696
MR. BIBIC: As a membership,
we actually think that we have done the right thing by the consumer here because
what we are saying is we trust the Commissioner, we trust him to make
recommendations. In most of the
cases we are going to want to make the customer happy. So, in that context, forget the
limitation of liability, go up to $1,000 and in most cases, as you point out, I
suspect that will end up resolving the matter.
LISTNUM
1 \l 1697
But if we get to a stage where an individual, with no statutory
authority, no procedural safeguards of any manner, shape or form in terms of
things like discovery and cross‑examination, et cetera, would start making
binding rulings that go well beyond what is in the contract, we feel that that
would be inappropriate.
LISTNUM
1 \l 1698
Also, I would like to point out, in case it is not clear, the $1,000
limit wouldn't apply to things like obvious billing error. So, if over three months we have
misbilled a customer to the tune of $1200, that doesn't form part of the
limitation of liability and doesn't form part of the restriction on the
Commissioner at the final decision stage.
LISTNUM
1 \l 1699
If there has been an improper billing error, if the complaint is properly
borne out, then obviously the customer should be refunded for those
costs.
LISTNUM
1 \l 1700
MR. McTAGGART: If I could
just add, you mentioned that that kind of a result, the publication of a
decision in which the TSP, it looks like they are trying to hide behind a
contractual term when the Commissioner otherwise feels that a different remedy
would be appropriate, you mentioned that that would be lousy public
relations. I don't think we should
underestimate the severity of that kind of a result in the
marketplace.
LISTNUM
1 \l 1701
On that point, I would just point out that the Broadcast Standards
Council, its primary tool is that very kind of public bad
publicity.
LISTNUM
1 \l 1702
THE CHAIRPERSON: I
understand that. My whole point was
that lots of people feel the limit is too low. I thought the defence of the limit was
that you will abide by it. You have
said if that is what the Commissioner says, we will pay the $1,000 even if we
think he is wrong because that is part of the ‑‑ now I am going to say no,
we will not pay the $1,000, even if he has said you should pay it because if the
limitation is lower, we can choose, in effect, the lower of the
two.
LISTNUM
1 \l 1703
It may be a rare example because Mr. McTaggart said it doesn't do much
for your image, but I don't know why you would even build that
in.
LISTNUM
1 \l 1704
MR. BIBIC: The membership
isn't prepared to waive its contractual rights to a body that again hasn't any
of these procedural safeguards. We
are prepared to strongly consider recommendations.
LISTNUM
1 \l 1705
We also do not believe that the Governor in Council intended for us to
waive any contractual rights.
LISTNUM
1 \l 1706
THE CHAIRPERSON: Did you
have another point on this?
LISTNUM
1 \l 1707
COMMISSIONER KATZ: I have
two follow‑up questions on this morning's discussion.
LISTNUM
1 \l 1708
Do you today or do you plan on recording calls that come in to your
offices?
LISTNUM
1 \l 1709
INTERIM CCTS COMMISSIONER McKENDRY:
We don't record calls, and we don't have any plans to record
calls.
LISTNUM
1 \l 1710
COMMISSIONER KATZ: Do you
have capability of hot transferring calls?
I am sure you folks in telecom know how to transfer better than anybody
else does in order to hot transfer calls, for example, between the CRTC and the
CCTS. The customer is kept on the
line live while the transfer takes place.
LISTNUM
1 \l 1711
INTERIM CCTS COMMISSIONER McKENDRY:
No, we don't do that.
LISTNUM
1 \l 1712
COMMISSIONER KATZ: Would you
do it if it made sense to do it?
LISTNUM
1 \l 1713
INTERIM CCTS COMMISSIONER McKENDRY:
We would do anything that made sense to do, let me be clear about
that.
LISTNUM
1 \l 1714
I am just trying to decide whether or not that would make any sense for
us, particularly in terms of the privacy issue I raised up earlier. It doesn't seem to me if we have the
consumer on the line and we are in a position to give them the CRTC's phone
number that it is a difficult task for them to disconnect from us and call the
CRTC. That is probably where I
would come down.
LISTNUM
1 \l 1715
In any event, we don't have that technology in place
today.
LISTNUM
1 \l 1716
THE CHAIRPERSON: Again, as
part of being user friendly, if a consumer is on the line and you say this is a
CRTC matter, do you wish me to transfer to the CRTC and he says yes, why
wouldn't you do it?
LISTNUM
1 \l 1717
INTERIM CCTS COMMISSIONER McKENDRY:
We will take that under consideration, Mr. Chairman. We certainly could do it technically and
obviously we would obtain the permission of the caller to do it, which would be
a simple thing to do, while they were on the line.
LISTNUM
1 \l 1718
So, we will take that under consideration.
LISTNUM
1 \l 1719
THE CHAIRPERSON: Mr. Bibic,
I am sorry to backtrack, but this morning one point came up which was on the
qualifications of membership, and you mentioned that you had modeled yourself on
the OBSI.
LISTNUM
1 \l 1720
My staff points out that actually the OBSI is slightly different and it
specifically requires that the independent members have a background in consumer
and banking matters in that case, while here you seem to specifically exclude
anybody who has a consumer background from qualifying as one of the three
independent members.
LISTNUM
1 \l 1721
We look at the chart here.
We see collectively appoint three independent directors based on, as I
understand the criteria, you cannot have been a member of a consumer group, if I
recall from memory, I don't know whether it is for a certain period of
time. Why is there an exclusion of
consumers from the independents?
LISTNUM
1 \l 1722
MR. BIBIC: Persons who were
with consumer lobbying groups or who have consumer advocate backgrounds are not
excluded per se. They are subject
to the three‑year cooling off period that all other categories of potential
candidates are, except for the government employees, as Mr. McTaggart identified
earlier.
LISTNUM
1 \l 1723
So, there is one seat reserved for persons who are actually currently in
that kind of role. Others, for
example, if Mr. McKendry were not the interim Commissioner, he has a consumer
advocate background, he could have been eligible for a seat on the
board.
LISTNUM
1 \l 1724
THE CHAIRPERSON: The OBSI,
just looking at the writing, says individuals with significant background in
public and consumer affairs. So,
somebody, for argument's sake, who was director of the Consumers' Association of
Canada, would be eligible, as long as he wasn't that for the last three
years.
LISTNUM
1 \l 1725
MR. BIBIC: That is
correct.
LISTNUM
1 \l 1726
THE CHAIRPERSON: And that
three‑year cooling off period is what you think is adequate so that he becomes a
truly impartial member?
LISTNUM
1 \l 1727
MR. BIBIC: Correct. The same thing would apply to a direct
officer or employee of any TSP member.
So, myself, for example.
LISTNUM
1 \l 1728
COMMISSIONER KATZ: Just one
or two more questions, if you don't mind.
Bear with me here.
LISTNUM
1 \l 1729
I read the time lines that exist between when a complaint comes in to the
CCTS and the time for the TSP to respond back again. What I didn't see, and maybe I missed
it, is how long the CCTS would take to come up with a resolution one way or the
other.
LISTNUM
1 \l 1730
Are there time lines for the deliberations within
CCTS?
LISTNUM
1 \l 1731
MR. ABBOTT: Thank you,
Commissioner Katz.
LISTNUM
1 \l 1732
No, there are not specific time lines set out, but I think it is
important to remember that the Commissioner is there as an impartial body. He is also, in effect, an adjudicator
and involved in investigations and he really needs to have the discretion to
take the time that he feels is required to do his job.
LISTNUM
1 \l 1733
I think it would be probably inappropriate for the procedural code to say
you only have ten days to do this, and if you run up against the end of the
time, then you just don't get to consider any more.
LISTNUM
1 \l 1734
That being said, certainly there is a general obligation set out in the
constating documents that the organization be run in an efficient, effective and
quick and consumer‑friendly manner, which I believe would mean that the
Commissioner and his staff would address things as soon as possible, and there
would be no undue delay.
LISTNUM
1 \l 1735
INTERIM CCTS COMMISSIONER McKENDRY:
Commissioner Katz, if I could just add something to
that.
LISTNUM
1 \l 1736
It would be my view, and I don't know whether this will happen during the
period of the interim Commissioner, but certainly the permanent Commissioner
would want to consider putting in place performance standards for the office's
work, and reporting on those performance standards is probably in the annual
report. I think that would be a
valuable tool, not only for the management of CCTS, but also in terms of showing
the public that we are efficient and that we do work as quickly as we
can.
LISTNUM
1 \l 1737
COMMISSIONER KATZ: We have
been acclimatized to service standards at the CRTC as
well.
LISTNUM
1 \l 1738
The only other question I have is the annual report, it is an annual
report by definition so it comes out once a year. Is there a period of time within which
the end of whatever fiscal year you operate it will be out, number one, and
number two, along with that, are there interim reports that will be made
available to, say, the CRTC just to see the trends and stuff or is this once a
year annual report that you will see X number of days after the end of the
fiscal year?
LISTNUM
1 \l 1739
MR. McTAGGART: I will be
corrected by counsel if I misstate this, but, no, I don't believe there is a
specific time frame within which the annual report must be issued, nor is there
a provision made for interim reports other than to the members themselves during
the course of the year.
LISTNUM
1 \l 1740
COMMISSIONER KATZ: Would the
members consider making it available to the CRTC at the time that they see
it?
LISTNUM
1 \l 1741
MR. McTAGGART: I have just
been reminded with respect to the timing of the annual report, and I apologize,
I will have to ask you to ask your question again, but with respect to the
annual report, it is a matter that comes before the annual meeting of
members. So, there is a certain
amount of timing because it would be approved in its final form at the annual
meeting of members. So that tells
you the timing.
LISTNUM
1 \l 1742
I apologize, I didn't hear your follow‑up question.
LISTNUM
1 \l 1743
COMMISSIONER KATZ: Just
whether there would be some availability of your interim reports that you
present to your committees or your board as well. The reason I ask that question is we do
get in the CRTC our statistics of calls coming in to the CRTC client services,
as we call them, as well. So it
would be a measure of comparison to just see how one is growing while one may
not, as the case may be.
LISTNUM
1 \l 1744
MR. McTAGGART: That is not
something on which I can commit the members to anything at the moment except to
say that we will take it away and think about what kind of information sharing
would be possible during the course of the year.
LISTNUM
1 \l 1745
COMMISSIONER KATZ: Thank
you.
LISTNUM
1 \l 1746
THE CHAIRPERSON: One last
question. My colleague,
Commissioner Morin raised the issue of periodic reviews or a review of the whole
thing in three years. You have said
you hadn't planned it. But I
presume you wouldn't be adverse if we were to mandate you to do that or we would
reserve the right to ask you to review it to make sure that it does fulfil the
function for which it was set up?
LISTNUM
1 \l 1747
MR. BIBIC: We have no
objection.
LISTNUM
1 \l 1748
THE CHAIRPERSON: Thank you
very much. We have been very
critical of you and asked many questions because you set this thing up and you
are paying the fare, so I apologize that we were overly
harsh.
LISTNUM
1 \l 1749
I repeat what I said at the beginning. We are very impressed with the fact that
you set it up, that it is working and it is there.
LISTNUM
1 \l 1750
We will break for lunch now.
Then after lunch we will hear from others. Thank you very much. Let's take an hour
break.
‑‑‑ Recessed at 1254 / Suspension à
1254
‑‑‑ Resumed at 1402 / Reprise à
1402
LISTNUM
1 \l 1751
THE CHAIRPERSON: Madam
Secretary, who do we have today, or this afternoon?
LISTNUM
1 \l 1752
THE SECRETARY: Thank you,
Mr. Chairman.
LISTNUM
1 \l 1753
We'll proceed with the next party which is the Canadian Internet Policy
and Public Interest Clinic and I would ask Ms Philippa Lawson to introduce her
colleague, after which you'll have 20 minutes for your
presentation.
LISTNUM
1 \l 1754
Please go ahead.
PRESENTATION /
PRÉSENTATION
LISTNUM
1 \l 1755
MS LAWSON: Thank you very
much.
LISTNUM
1 \l 1756
Good afternoon, Mr. Chairman.
LISTNUM
1 \l 1757
THE CHAIRPERSON: Good
afternoon.
LISTNUM
1 \l 1758
MS LAWSON:
Commissioners.
LISTNUM
1 \l 1759
Thank you for the opportunity to comment today on the design of a new
Canadian Telecommunications consumer agency.
LISTNUM
1 \l 1760
My name is Philippa Lawson, I'm the Director of CIPPIC, the Canadian
Internet Policy and Public Interest Clinic at the University of Ottawa, Faculty
of Law.
LISTNUM
1 \l 1761
With me today is a student intern at CIPPIC, Michael de Santis, and I'd
like to thank him as well as our articling student Jocelyne Cleary for their
assistance in preparing CIPPIC's submissions
today.
LISTNUM
1 \l 1762
Mr. Chairman, Commissioners, you have an opportunity through this
proceeding to create an effective body for resolving consumer complaints and
marketplace issues in an increasingly deregulated telecommunications
market.
LISTNUM
1 \l 1763
The effectiveness of the body you create will depend on a number of
factors, most importantly its mandate, its powers and its independence from
industry.
LISTNUM
1 \l 1764
We have clear marching orders from Cabinet calling for an independent
agency in which all telecommunication service providers participate with a
mandate to look into systemic issues as well as individual
complaints.
LISTNUM
1 \l 1765
We also have a model in operation, the industry created CCTS. The industry model goes some way towards
establishing the independent and effective agency envisaged in Cabinet's
Order‑in‑Council, however, in our view, a number of changes are critical if it
is to meet Cabinet's direction and to be truly effective.
LISTNUM
1 \l 1766
These changes include the following
seven:
LISTNUM
1 \l 1767
First, it should cover all telecommunication service providers, not just
those who wish to join.
LISTNUM
1 \l 1768
Second, it should be truly independent of industry, especially with
respect to such matters as reporting to the public and to the
CRTC.
LISTNUM
1 \l 1769
Third, it should have an explicit mandate to deal with systemic issues as
well as individual complaints.
LISTNUM
1 \l 1770
Fourth, it must be able to deal with the full range of issues that
telecom consumers typically have with their providers, including such issues as
customer service, unfair contract terms, sales tactics, misleading advertising
and hidden fees.
LISTNUM
1 \l 1771
Fifth, it should publish statistics on all complaints by company, not
just those that escalate to the final decision stage.
LISTNUM
1 \l 1772
Sixth, it should be empowered to order appropriate levels of compensation
regardless of liability limitations that companies purport to impose on their
customers by contract.
LISTNUM
1 \l 1773
And, finally, it should be named and actively promoted in such a way that
consumers across Canada are aware of it, can easily find it when looking and are
referred to it in all appropriate cases.
LISTNUM
1 \l 1774
I will now address the issues in the order
requested.
LISTNUM
1 \l 1775
Membership. The
Order‑in‑Council states, and I quote:
"All telecommunication service
providers should participate in and contribute to the financing of an effective
consumer agency." (As
read)
LISTNUM
1 \l 1776
MS LAWSON: The Telecom
Policy Review Panel (TPRP) as well recommended a mandatory model backed up with
new CRTC enforcement powers. Well, we think that should be the
end of the debate on this issue.
LISTNUM
1 \l 1777
My friends from the Companies have, at least until today, been putting up
strong opposition. They would like
a voluntary model under which companies are free to set up alternative
complaints resolution bodies or not to offer consumers any recourse beyond their
own complaints handling. Indeed, a
number of players have chosen not to join.
LISTNUM
1 \l 1778
The Companies claim that market forces are sufficient to ensure that the
CCTS continues to operate. This
argument may seem attractive at first blush, but recall that the CCTS was not a
voluntary initiative; industry was effectively ordered to set it
up.
LISTNUM
1 \l 1779
Market forces are not driving this initiative and are unlikely to drive
it in the future. This is because
consumers don't generally think about dispute resolution when they sign up for
service. Unlike price and fancy
service features, it's not something that companies
advertise.
LISTNUM
1 \l 1780
So, if it's voluntary it's likely never to be comprehensive and, indeed,
may well leave consumers in certain geographic areas without any recourse beyond
their TSP.
LISTNUM
1 \l 1781
If voluntary, there would be no guarantee that the agency would continue
operations into the future. Like
the Cable Television Standards Council and the Ombudsman for Long Distance
Telecommunication Services, both of which were voluntary industry initiatives,
it could well die a quiet death.
LISTNUM
1 \l 1782
Making it mandatory will have the added benefit of creating a barrier to
entry by bad actors. If they're
less likely to get away with poor service in Canada, they may decide to stay
away.
LISTNUM
1 \l 1783
It will also ensure that consumers have a single point of contact for
resolving telecom disputes. This,
in our view, is more efficient than allowing two or more schemes to operate at
the same time.
LISTNUM
1 \l 1784
I know you've asked the Broadcast Standards Council to appear today and
we think they do a fine job as a voluntary body, but that is an entirely
distinguishable enterprise from what we're talking about today on a number of
counts; most notably, that complainants always have recourse to the CRTC, it's a
regulated industry.
LISTNUM
1 \l 1785
Moreover, billing or other service disputes are of an entirely different
nature than offensive content complaints.
They are persistent, while offensive content is ephemeral. They involve money, not opinions. Complaints are about the service
provider itself, not third party content.
Remedies involve compensation, not just apologies and changing service
providers is much more onerous for consumers than simply changing the
channel.
LISTNUM
1 \l 1786
So, with great respect for Mr. Cohen and the CBSC, we feel its relevance
to this proceeding is quite limited.
LISTNUM
1 \l 1787
Governance structure.
Cabinet's order is clear that:
"The governance structure of an
effective consumer agency should be designed to ensure its independence from the
telecommunications industry." (As
read)
LISTNUM
1 \l 1788
MS LAWSON: That was a
quote.
LISTNUM
1 \l 1789
The CCTS model gives industry too much power over the agency and,
therefore, does not, in our view, meet Cabinet's requirement of
independence.
LISTNUM
1 \l 1790
First, although this is an agency designed to serve consumers, only one
of the seven board spots is reserved for a consumer representative. In contrast, industry reserves three
seats for itself. There should be at least as
many seats on the board for informed consumer representatives as there is for
industry, at least in order to balance the competing interests. If necessary, one tie‑breaking seat can
be given to an independent director with no association with industry or
consumer groups.
LISTNUM
1 \l 1791
Second, even if board membership is balanced, the industry has created a
structure that ties the hands of the Commissioner in at least three critical
ways.
LISTNUM
1 \l 1792
First, the Commissioner cannot report on systemic issues or initiate the
development of industry codes of practice without being requested to do so by
the industry members, and I refer to section 86 of the bylaws, yet these are
critical functions that Cabinet explicitly set out for the new
agency.
LISTNUM
1 \l 1793
Second, the Commissioner must get board approval in order to conduct
research into complaint trends, and I refer to paragraph 13 of the Companies'
July submission, or to work on industry codes of conduct or standards. Again, it's unclear what this achieves
other than to keep the agency from doing the work it should be
doing.
LISTNUM
1 \l 1794
And, third, board approval of the annual report requires a two‑thirds
majority which equates to five out of seven board votes and, thus, allows the
industry an effective veto over reporting that may put them in a bad
light.
LISTNUM
1 \l 1795
Mr. Chairman, it's hardly a safeguard to give the very industry that is
being disciplined by a supposedly independent Commissioner the power to prevent
that Commissioner from reporting and working on issues he or she deems worthy of
attention.
LISTNUM
1 \l 1796
In no case should industry have the right to interfere with, let alone
have a veto over Commissioner publications, activities or determinations
regarding marketplace issues or complaints.
LISTNUM
1 \l 1797
I'd also note that the TSPs, as you've pointed out this morning, set up
the bylaws so that the procedural code and the bylaws cannot be changed without
an extraordinary resolution, that including two‑thirds of industry members
themselves.
LISTNUM
1 \l 1798
Given the novel nature of this initiative, the fact that the very
industry subject to the agency orders has been tasked with designing it, there
is a strong likelihood, in our view, that changes will be needed in the future
to better serve the public.
LISTNUM
1 \l 1799
Such changes could involve expanding the mandate or changing procedural
rules, but such changes may well meet industry objection because of their own
self interest and, therefore, industry may block them under this
model.
LISTNUM
1 \l 1800
And I'd point out that the Ombudsman for Banking Services and Investments
recently had a review done which recently recommended enlarging its mandate to
include systemic issues. In that
case I expect it to go through because their board includes seven independent
members as opposed to three from industry.
LISTNUM
1 \l 1801
Moving on to issues of mandate.
I'd like to talk first about systemic issues and then about eligible
complaints.
LISTNUM
1 \l 1802
On systemic issues, quoting again from the Order‑in‑
Council:
"The mandate of an effective
consumer agency should include, in addition to resolving complaints, the
development or approval of related industry codes of conduct and standards,
publishing an annual report on the nature, number and resolution of complaints
received for each telecommunication service provider, and, as appropriate,
identifying issues or trends that may warrant further attention by the
Commission and the government." (As
read)
LISTNUM
1 \l 1803
In spite of this clear direction from cabinet, the industry model focuses
almost exclusively on individual complaints, providing the Commissioner with
potentially no leeway to pursue these other equally important
activities.
LISTNUM
1 \l 1804
As already mentioned, the industry has given itself the right to block
publication of reports that it doesn't like, indeed to prevent the Commissioner
from looking into systemic issues in the first place.
LISTNUM
1 \l 1805
The letters patent of the industry corporation limit its objects to
individual complaints resolution and the publishing of annual reports. The procedural code deals only with
complaints resolution, and the by‑laws give the Commissioner no powers to report
on systemic issues or to develop industry codes of conduct except upon request
by TSP members. I refer you to
section 86 of the by‑law.
LISTNUM
1 \l 1806
Yet the agency's most valuable function, in our view, may be its ability
to deal with and resolve recurring or broad based marketplace problems. In CIPPIC's view, the agency is going to
be of very limited effectiveness if all it does is resolve individual consumer
complaints on a largely confidential basis.
LISTNUM
1 \l 1807
Many of the issues coming before the agency will be of a systemic nature,
requiring action or a company‑wide or even industry‑wide basis. For reasons of efficiency and
effectiveness, the agency should be given explicit powers, indeed duties, to
investigate and report on such issues.
LISTNUM
1 \l 1808
We agree with the TPRP that the agency should be empowered "to conduct
research and analysis into significant or recurring consumer problems," and to
refer such matters to the CRTC with a requirement for the CRTC to respond within
six months or some other reasonable time.
LISTNUM
1 \l 1809
On to eligible complaints.
First, matters of scope.
LISTNUM
1 \l 1810
An effective consumer agency should be empowered to deal with all
consumer complaints involving telecommunication services other than those that
involve non‑telecommunication services or services beyond the TSP's control that
are being or will be resolved by another body, or that have to do with content,
the setting of prices or general telecommunications policy more properly handled
by the CRTC
LISTNUM
1 \l 1811
In particular, the agency should be empowered to deal with complaints
about contract terms, customer service, misleading advertising, sales tactics
and other operating practices, all of these being matters that the CCTS
currently treats as outside its scope.
LISTNUM
1 \l 1812
Interestingly, complaints about customer service and unfair contract
terms account for close to half of all complaints to the Australian
telecommunications industry ombudsman.
Common customer service complaints include failing to act on a customer's
request, giving incorrect or inadequate advice or not being able to be
contacted. Common complaints about
contract terms include high termination fees, changing terms in mid contract and
providing inadequate or misleading advice at point of
sale.
LISTNUM
1 \l 1813
I have heard no good reason why the Canadian body shouldn't be likewise
empowered to deal with these kinds of issues.
LISTNUM
1 \l 1814
Overlapping jurisdiction.
Issues such as misleading advertising and privacy should not be treated
as outside the agency's scope simply because another agency has jurisdiction
over them. Consumers in this case
must be assured of recourse from that other agency before they are
abandoned. We all know that
individual complaints about misleading advertising are rarely, if ever, acted
upon by the Competition Bureau. The
bureau is not a consumer protection agency and doesn't pretend to offer
consumers recourse. For us to
pretend that consumers have effective avenues of resource against companies for
this kind of activity is to deny reality.
LISTNUM
1 \l 1815
Regulated services. We agree
with the TPRP that regulated, as well as unregulated, services should be covered
by the agency. There are a number
of reasons why this makes sense.
LISTNUM
1 \l 1816
From the consumer perspective there is no difference. Telecom service is telecom service, and
the same recourse should be available for poor service, whether it is regulated
or not.
LISTNUM
1 \l 1817
Second, the category of regulated service is a moving
target.
LISTNUM
1 \l 1818
Third, it is more efficient for one agency to deal with consumer
complaints about all telecommunication services. In fact, having two agencies dealing
with similar kinds of complaints risks, in our view, far more wasteful
duplication of resources than that which the companies claim would result if
complainants have recourse to the CRTC, should they not be happy with the
agency's decision.
LISTNUM
1 \l 1819
Finally, mixed issues.
Services and matters that are outside the agency's mandate need to be
much more clearly defined than they currently are in the CCTS model. Even so, some issues will undoubtedly
involve matters that can be seen as either in or out of the scope of the
agency's mandate. The constating
documents should state that wherever an issue can be reasonably interpreted as
within the agency's scope, it should be treated as such.
LISTNUM
1 \l 1820
On to the issue of remedies.
The TPRP recommended a maximum compensation limit of $10,000, and so do
we. Similar limits are applied in
both Australia and the UK. While
the vast bulk of complaints are likely to involve losses of less than $1,000,
there will realistically be at least some for which a higher level of
compensation is justified. It is
not clear to us why the agency should be restricted from ordering awards of
higher than $1,000 in deserving cases.
LISTNUM
1 \l 1821
More importantly, however, telecom service providers should not be able
to undermine the regime by inserting into their terms of service clauses that
limit their liability for precisely the kind of behaviour that the new agency is
meant to address. If contractual
restrictions are allowed to take precedence over the agency's power to award
compensation, it won't matter what the limit on awards is. Companies will simply, as they do now,
ensure that their terms of service relieve them of any meaningful
liability.
LISTNUM
1 \l 1822
We did a quick review of some of the CCTS's member terms of service, and
found that they all contain liability limitation clauses that would, under the
CCTS approach, neutralize the agency's ability to award compensation in a wide
range of cases. Most deny liability
whatsoever, zero; others limit it to $20 or possibly $100 in one
case.
LISTNUM
1 \l 1823
It is important to note that these terms are not legally enforceable
simply by virtue of being in the contract.
Indeed, we would argue that they are invalid under both provincial
consumer protection legislation and the common law doctrine of
unconscionability.
LISTNUM
1 \l 1824
We are unaware of any case law in Canada upholding, for example, Bell's
$20 liability limitation for breach of contract. We doubt that any court would uphold
such limitations on consumer remedies in the deregulated
context.
LISTNUM
1 \l 1825
The law does not prohibit companies from putting outrageously unfair
terms into contracts. This is the
problem. So of course they do,
knowing full well that such terms will not be enforced but hoping that they
might at least deter some consumers.
So, unless confirmed by the courts as fair and enforceable, these clauses
should be given no weight in the determination of appropriate remedies by the
new agency.
LISTNUM
1 \l 1826
With respect to other contractual clauses such as time periods for
bringing complaints, we recommend that the agency rules take precedence over
conflicting contractual provisions.
LISTNUM
1 \l 1827
Operations. For the most
part the CCTS procedures for complaint handling are fine. However, we do believe that a few
changes are necessary.
LISTNUM
1 \l 1828
First, e‑mail complaints should be accepted.
LISTNUM
1 \l 1829
Secondly, web forms should not be used unless they automatically send a
copy of the complaint back to the complainant so that the complainant has a
record of what she sent in.
LISTNUM
1 \l 1830
Third, complaints should be accepted over the phone, as they are in
Australia.
LISTNUM
1 \l 1831
Fourth, complaints should not be rejected simply because complainants
failed to specify the result they would like to see, or their content to be
bound by the agency's rules, which is currently a requirement in the procedural
code.
LISTNUM
1 \l 1832
Fifth, complaints should not be rejected simply because they are filed by
several complainants, and that is required under procedural code
6.14.
LISTNUM
1 \l 1833
Finally, 20 business days is too long for the initial company response,
in our view, to a complaint from the agency. The time lines should be
shortened.
LISTNUM
1 \l 1834
Now quickly on to other matters.
First, confidentiality. As
already noted, the Order in Council calls for the agency to publish an annual
report on the nature, number and resolution of complaints received for each
telecom service provider. It
clearly, therefore, contemplates publication of reports identifying complaints
by provider. Yet, the CCTS by‑laws,
and again I refer to section 86, require that any reports on industry issues
shall maintain the confidentiality of the TSP members, completely contradicting
cabinet's direction.
LISTNUM
1 \l 1835
Publicity is a powerful compliance tool and can be used to encourage
early stage complaint resolution.
However, it is also important for general transparency and accountability
purposes, key components of an effective marketplace. If the anonymity of TSPs is protected,
except with respect to the few complaints that reach a binding decision stage,
the Order in Council will not, in our view, have been fulfilled. The agency will be severely frustrated
in its ability to inform the public and the CRTC, and the potential for this
process to affect marketplace behaviour will be limited.
LISTNUM
1 \l 1836
The agency should therefore be empowered to name TSPs in all general
statistics reporting by issue and by complaint level as is done in Australia, as
Commissioner Morin has already pointed out.
LISTNUM
1 \l 1837
I have with me copies of the most recent Australian complaints reports
for your review, which I can pass around, which just show how it is being done
without any ill effect on the industry.
LISTNUM
1 \l 1838
Finally, Mr. Chairman, on the matter of promotion, in order for the
agency to be effective, it must be well known among consumers and individual
consumers must be referred to it in all appropriate cases. The CRTC should therefore ensure that
all TSP members clearly and prominently advertise the agency on their websites,
in their promotional literature and on all bill statements. Efforts should be made to ensure that
search engine optimization occurs.
LISTNUM
1 \l 1839
Consideration should also be given, in our view, to a new name for the
agency. While it is obvious that a
lot of lawyers worked on this initiative, it doesn't seem to us that the
companies put their considerable marketing resources to work on the
name.
LISTNUM
1 \l 1840
In conclusion, Mr. Chairman, in short, consumers, cabinet and an expert
panel established by the government are all calling for an independent effective
agency with sufficient powers to influence market behaviour in the
telecommunications industry, as well as to resolve individual complaints. The CCTS is not yet that
agency.
LISTNUM
1 \l 1841
Thank you.
LISTNUM
1 \l 1842
THE CHAIRPERSON: Thank you
very much, Ms Lawson.
LISTNUM
1 \l 1843
I didn't expect to see you so soon again before me, but it is always a
pleasure to hear from you. That was
certainly a very logical presentation.
LISTNUM
1 \l 1844
You really have approached this a little bit like legislation. If we legislated a consumer agency, what
should be the power there? We are very much restrained here by the Order in
Council.
LISTNUM
1 \l 1845
Your point four says it must be able to deal with a full range of issues
that telecom consumers typically have from all providers, including customer
service, sales tactics, misleading advertising and hidden fees. I can't see any basis for that in the
Order in Council.
LISTNUM
1 \l 1846
Where is the authority in the Order of Council basically suggesting that
the CCTS not only deal with complaints in the forborne area, but in effect
become sort of the basket to assemble all consumer complaints. I don't deny that it would be wonderful
to have that power, but what we are supposed to approve is something that is
responsive to the Order in Council and, frankly, I just don't see what portion
of the Order in Council you think allows us to exact this kind of provision from
the industry, which after all is putting the CCTS into
place.
LISTNUM
1 \l 1847
MS LAWSON: Mr. Chairman, the
Order in Council calls for an effective consumer telecommunications
agency.
LISTNUM
1 \l 1848
We are not suggesting that the mandate go any further than
telecommunication services. I
didn't mention, but small business obviously as well as
consumer.
LISTNUM
1 \l 1849
What we are suggesting should be within the mandate of the organization
are issues that are within the mandate of other organizations, such as the
Australian telecommunications industry ombudsman. They go to the issue of
effectiveness.
LISTNUM
1 \l 1850
These are all matters that occur in the forborne telecommunications
marketplace. That is a separate
issue from the regulated versus unregulated issue.
LISTNUM
1 \l 1851
THE CHAIRPERSON: You are
losing me here.
LISTNUM
1 \l 1852
We are having forborne areas, and cabinet clearly said this is forborne,
unregulated, make sure the consumer doesn't get left out. Now here you come and say, well, no, we
want a comprehensive consumer agency, it should deal with regulated as well as
forborne areas because the consumer doesn't know the difference, and there is a
whole bunch of other things that the consumer has grievances about, such as
sales tactics, misleading advertising, give it to them
too.
LISTNUM
1 \l 1853
Frankly, I just don't see where the word effective means that we can
mandate all of this kind of authority on to the CCTS.
LISTNUM
1 \l 1854
MS LAWSON: Again, we are not
suggesting that you go beyond the Order in Council in any way at all. We are saying these are the kinds of
complaints that consumers have about telecommunication
services.
LISTNUM
1 \l 1855
As I pointed out, they make up close to half of the complaints dealt with
in Australia. Let's put aside the
issue of regulated versus unregulated.
Let's just accept that we are going with forborne
only.
LISTNUM
1 \l 1856
THE CHAIRPERSON:
Okay.
LISTNUM
1 \l 1857
MS LAWSON: So, we are just
talking about forborne telecommunication services. Then we are talking about what is in
scope and what is out of scope.
LISTNUM
1 \l 1858
We have been looking at the industry's proposal. They have a nice chart here with the
services and the matters that are within the scope, and the services and matters
that are outside the scope.
LISTNUM
1 \l 1859
THE CHAIRPERSON: What
document are you referring to?
LISTNUM
1 \l 1860
MS LAWSON: It is from their
website. I think I printed this off
from the website, the scope of the mandate. There is a chart and it appears at page
9 of the July 23rd submission. So,
the proposal, the original proposal from the companies when they talk about
eligible complaints. So, page 9,
paragraph 35.
LISTNUM
1 \l 1861
THE CHAIRPERSON: Thank
you.
LISTNUM
1 \l 1862
MS LAWSON: There is a nice
chart there showing the proposal, the CCTS model. The services that are within scope and
the services that are out of scope and then similarly with
matters.
LISTNUM
1 \l 1863
We looked at this and we are looking at, okay, consumers are going to
want to have as many of their complaints about telecommunication services as
possible dealt with by this agency.
So, we recognize that there are a number of things that should not be
within the scope, but we find that many of the items listed here, such as
contract terms, false or misleading advertising, policy matters stated just
baldly, policy matters, general operating practices not covered in customer
contract terms or commitments, there are many complaints that could be
characterized as falling under those categories that we think should be dealt
with by a Commissioner and that I would suggest cabinet expected this new agency
to deal with as well, otherwise in our view it would not meet cabinet's
requirement of an effective consumer agency.
LISTNUM
1 \l 1864
THE CHAIRPERSON: Let me turn
it the other way around. Claims of
false or misleading advertising is here clearly marked as outside the scope of
the CCTS. You say this is one of
the main complaints consumers have.
Fine, that is accepted. That
is what the Australian evidence says.
LISTNUM
1 \l 1865
Now I am turning to the Order in Council and I am saying where on earth
is this covered, and I don't find it.
LISTNUM
1 \l 1866
MS LAWSON: No, the Order in
Council doesn't get into that level of detail, nor does the Order in Council say
that they should be outside the scope.
LISTNUM
1 \l 1867
I think the Order in Council doesn't help us at this level of
detail. It doesn't push it in
either direction. It just says it
needs to be effective, and you have to decide what is the best result here to
achieve an effective agency.
LISTNUM
1 \l 1868
THE CHAIRPERSON: You made a
very eloquent point about systemic issues, trends, et cetera, which are
specifically mentioned in the Order in Council and you fault the constating
documents for basically depriving the Commissioner of any authority over that
unless he has got the consent of the TSP.
I think that is a very valid point.
Cabinet asked for it, we can't deliver it without ‑‑ is that a
proper restriction or not?
LISTNUM
1 \l 1869
I must say I am somewhat hard pressed to find sales tactics, misleading
advertising or hidden fees all in the concept of an effective agency. Effective presumably to deal with a
problem that is coming up, and the problem that is coming up, we are going to
have forborne areas, which we didn't have
before.
LISTNUM
1 \l 1870
MS LAWSON: And these are
examples of the kinds of issues that consumers have in forborne
telecommunications markets. They
are coming to us right now. We have
had a number of complaints about misleading advertising by internet service
providers of highspeed internet service.
The only recourse for consumers right now is to go to the courts on
that.
LISTNUM
1 \l 1871
We think this is something that it would be very useful for the agency to
be able to address. Absolutely
cabinet did not get into this level of detail, but what we have here is a
proposal from the industry that is frankly biased in their favour. They are cutting out as much as they
possibly can here, and we think that it is too much.
LISTNUM
1 \l 1872
We went and looked at other models ‑‑ Australia, in
particular ‑‑ to see what were the kinds of complaints that that body was
receiving, and we found that many of the common complaints there would be
outside the scope of this agency.
LISTNUM
1 \l 1873
THE CHAIRPERSON: I guess you
and I differ here. You are saying
it would be nice, they should have this.
I don't necessarily dispute it, I am just saying I am trying to base
myself, put myself in the Order in Council, and I have a difficulty
there.
LISTNUM
1 \l 1874
What about regulated services, how do you see that the Order in Council
allows us to also suggest that the CCTS deal with regulated services? You say you agree with the TPRP, which
suggested that.
LISTNUM
1 \l 1875
MS LAWSON: The TPRP was
quite clear. They addressed
it.
LISTNUM
1 \l 1876
I don't think cabinet addressed it.
There are a number of issues that cabinet has not addressed, but the
Order in Council doesn't help you either way. It just says you need to create an
effective agency.
LISTNUM
1 \l 1877
So, I don't think the Order in Council pushes it in one direction or the
other.
LISTNUM
1 \l 1878
THE CHAIRPERSON: We heard
Mr. McKendry this morning on this whole issue on which I asked him obviously a
consumer doesn't know whether an area is forborne or not, et cetera. So, he will be the first point of
contact. He will advertise himself,
the ASTPs will advertise, we will advertise he exists. If I have a complaint, I call him
up.
LISTNUM
1 \l 1879
Now, when he says he doesn't have authority, he essentially suggests that
he will tell the people call the CRTC, here is a name, here is the number, here
is their website.
LISTNUM
1 \l 1880
Consumers aren't going to be very happy about that. They will want somebody to address their
problem, rather than being forwarded.
Do you see any way that we can get around this, any practical
way?
LISTNUM
1 \l 1881
MS LAWSON: That we can get,
excuse me, around this?
LISTNUM
1 \l 1882
THE CHAIRPERSON: Yes. He has no authority for regulated
services; we have, yet, he will be the recipient of all the
complaints.
LISTNUM
1 \l 1883
MS LAWSON: You mean how do
we operationalize the recommendation?
LISTNUM
1 \l 1884
THE CHAIRPERSON: Yes,
right.
LISTNUM
1 \l 1885
MS LAWSON: My thinking is
that the CRTC could delegate its powers the way it does to the Canadian
Broadcast Standards Council right now.
Those are all regulated matters that consumers can make their complaints
about offensive content to the CRTC directly, but the CRTC allows those
complaints to be dealt with first by the CBSC.
LISTNUM
1 \l 1886
THE CHAIRPERSON: It had
unfortunately impact on the cost of those operations, which is one thing we
would have to work out. But that is
an interesting suggestion.
LISTNUM
1 \l 1887
On the remedies, and you were here this morning, you suggest, if I
understand it correctly, (a), go to $1,000, and (b), that the contract limit,
liability limitations are probably not enforceable in any event, but shouldn't
be ignored here by the Commissioner.
LISTNUM
1 \l 1888
Again, how do we operationalize this?
MS LAWSON: In the rules of the constating
documents, the telecom service provider members of the organization or the
companies that are subject to it would agree to give the agency the power to
award compensation and to apply rules that may be in conflict with terms that
they choose to put in their contracts.
LISTNUM
1 \l 1889
THE CHAIRPERSON:
Effectively, if we take your limit of $10,000, they would waive their
contractual liability for any amount under $10,000? The TSP would basically say any award
that you make under $10,000 we will accept and we will not exclude it on the
basis of contract?
LISTNUM
1 \l 1890
MS LAWSON:
Exactly.
LISTNUM
1 \l 1891
THE CHAIRPERSON: ‑‑ exclude it on the basis
of ‑‑
LISTNUM
1 \l 1892
MS LAWSON: On contract,
exactly, yes.
LISTNUM
1 \l 1893
Yes, I mean, as I said already, these are not necessarily enforceable
terms and the point is the law doesn't prohibit companies from putting the terms
in their ‑‑ they can put whatever they want in the contracts and then wait
and see if it is legally enforceable.
And in our view these are generally not legally
enforceable.
LISTNUM
1 \l 1894
THE CHAIRPERSON: Now, on
what you call other matters, confidentiality, you obviously believe very much in
the power of shaming and naming people and pointing it out, et cetera, and feel
the Commissioner should do that.
LISTNUM
1 \l 1895
Again, do you see that in the order in council, that there is a
requirement to identify individual companies that are offside and to extend it
there or is this again something that you feel is implicit in the
order?
LISTNUM
1 \l 1896
MS LAWSON: I think it's
pretty explicit in the order, but I would first just clarify our position on
naming and shaming.
LISTNUM
1 \l 1897
We are ‑‑ and contrary to the written version and the comments that
I submitted ‑‑ originally what is in there suggests that they should be
publicizing recommendations by company.
But we are willing to concede on that one and say, okay, with respect to
individual complaints leave it to the final
decisions.
LISTNUM
1 \l 1898
But when it comes to just general industry statistics that Commissioner
Morin was referring to earlier this morning and for which I passed around some
examples, that is just general information. That's hardly ‑‑ I mean, it's
hardly even naming and shaming. It
has got everyone named there and it just shows all of the complaints by the
stage of complaint process or by the issue, and that to us is just very general
marketplace issues that you should be aware of and that the public has the right
to know about.
LISTNUM
1 \l 1899
THE CHAIRPERSON: But you are
not going so far as to say with regard to TELUS there were 10,000 complaints,
5,000 were resolved at stage one and 4,000 at stage two, et cetera, or did you
feel that's what the Commissioner should be doing?
LISTNUM
1 \l 1900
MS LAWSON: Yes, oh,
yes. And sorry ‑‑ and to
answer your question, the order in council is explicit about this where it says,
"Whereas" ‑‑ in the seventh paragraph, "Whereas the Governor in Council
considers that" and then the fourth line down:
"The mandate of an effective
consumer agency should include; in addition to resolving complaints, publishing
an annual report on the nature, number and resolution of complaints received for
each telecommunication service provider."
(As read)
LISTNUM
1 \l 1901
MS LAWSON: I think that's
very clear.
LISTNUM
1 \l 1902
THE CHAIRPERSON: Okay. And you say that:
"CCTS performance report for the
five last months is proof of this."
(As read)
LISTNUM
1 \l 1903
THE CHAIRPERSON: I must
confess I haven't read it, but in what way is the report
deficient?
LISTNUM
1 \l 1904
MS LAWSON: Well, the report
or just the report that you got today from Mr. McKendry. It's not deficient. It's just showing that they are doing an
excellent job resolving complaints at the early stages, which is great from an
individual complaint resolution perspective, but because of the rules that they
are applying with respect to confidentiality and publicity we don't see
anything.
LISTNUM
1 \l 1905
We have no information about telecommunication service provider complaint
statistics.
LISTNUM
1 \l 1906
THE CHAIRPERSON: And lastly,
a new name for the agency. I agree, the CCTS is not a
very ‑‑
‑‑‑ Laughter / Rires
LISTNUM
1 \l 1907
THE CHAIRPERSON: Have you
got any suggestions?
LISTNUM
1 \l 1908
MS LAWSON: Sorry. I wish we did. I think shorter would be
good. It seems that
telecommunications ombudsman seems to work in Australia and telecom consumer
agency is the term that the TPRP has used.
I think it needs to be a bit shorter and snappier.
LISTNUM
1 \l 1909
THE CHAIRPERSON: Yes, I also
don't like the word "complaint" in there.
It gives a negative as if every consumer is a complainant, you know,
which may not be the case at all.
LISTNUM
1 \l 1910
MS LAWSON: Well, if I can
say, I agree with you. I think a
more positive name would be good.
LISTNUM
1 \l 1911
And also, it's not just about individual complaints. Again, if you read the order in council
this is about systemic marketplace issues as well.
LISTNUM
1 \l 1912
THE CHAIRPERSON:
Okay.
LISTNUM
1 \l 1913
Len.
LISTNUM
1 \l 1914
COMMISSIONER KATZ: Thank
you, Mr. Chairman.
LISTNUM
1 \l 1915
Can I take you to page two of your comments where you talk about
membership, and I will parallel that with your actual ‑‑ your evidence that
you filed on October the 1st, 2007, paragraph 37 and 38 on membership as
well?
LISTNUM
1 \l 1916
MS LAWSON:
Sure.
LISTNUM
1 \l 1917
COMMISSIONER KATZ: You
mention on page two that the order in council states ‑‑ and you have got a
quote there ‑‑ that all service providers shall participate and
contribute. And then you say the
TPRP as well recommended a mandatory model backed up with new CRTC enforcement
powers. And then in paragraph 38 of
your submission of October 1st you talk about the CRTC using its powers in a
section 24 or subsection 67(1)(d) to make membership in the consumer agency
mandatory.
LISTNUM
1 \l 1918
This morning we heard from the members about the various scenarios that
exist. Have you got any thoughts at
all to respond to what they put forward?
LISTNUM
1 \l 1919
MS LAWSON: Yes. My thought first and foremost is we need
a legislative amendment here. We
really do. I mean, I think that is
what it comes down to and I think that the Commission should be working with the
Minister to accomplish that. It's
been done for unsolicited communications.
It's been done for the contribution scheme. It is not an impossible
task.
LISTNUM
1 \l 1920
I think that would just clarify everything, give the Commission the
jurisdiction and the powers that it needs to do this
properly.
LISTNUM
1 \l 1921
COMMISSIONER KATZ:
Notwithstanding that and until such time?
LISTNUM
1 \l 1922
MS LAWSON: Until such time I
agree in large point with Mr. Grieve, other than on section 32(g). I think that you do have the power under
section 32(g). I think we are
talking about telecommunication services here and that you certainly would have
general powers to make orders of the nature we are talking about under that
provision.
LISTNUM
1 \l 1923
But I recognize all of the difficulties, legal and practical, that were
discussed this morning. I don't
think that makes it impossible. I
think you can go ahead the way you have without having direct jurisdiction over
re‑sellers to require the carriers to include in their contracts with re‑sellers
the same kind of obligations that you are putting on
them.
LISTNUM
1 \l 1924
It's interesting that in Australia, again, it's a mandatory model. Somehow they manage there. It would be interesting ‑‑ and I
don't have the answer, but it would be interesting to talk with them and find
out how they do it. I think it's
largely legislatively but from a practical enforcement perspective, again, how
do they ‑‑ how do they actually enforce the
requirements?
LISTNUM
1 \l 1925
I think ultimately the CRTC needs new powers of enforcement, but I also
think that in the interim short of disconnection which we all recognize is
unlikely to happen in other than very extreme cases, there probably are a number
of other measures that could be taken and maybe we just need to brainstorm a bit
about that.
LISTNUM
1 \l 1926
Publicity; maybe the CRTC could even be involved here in warning
consumers about, say, bad actors who are not joining or not
complying.
LISTNUM
1 \l 1927
You know, until you have got the powers you need ‑‑ we should think
about other ways that we can use, you know, market forces and self‑help
mechanisms out there to achieve the results we are looking to
achieve.
LISTNUM
1 \l 1928
COMMISSIONER KATZ: One of
the things that I am not sure if it was Mr. Bibic or Mr. Grieve mentioned this
morning, is the hundreds or maybe thousands of small little players that are out
there, ISPs and search providers.
If the Commission did decide to make membership mandatory, do you think
it is an all or nothing proposition or should there or could there be exemptions
under certain categories?
LISTNUM
1 \l 1929
MS LAWSON: I think there
could be exemptions. I haven't
thought that through but I wouldn't say it has to be all or nothing. I think we want this to be as
comprehensive as possible.
LISTNUM
1 \l 1930
The optimum situation is that every one, every single small provider
involved ‑‑ I think if it's structured so that they only pay on a complaint
basis then that should solve the funding problem. But there may be good reason in some
cases. There may be good reason for
exempting certain carriers or certain situations and I think you should be
willing to consider that.
LISTNUM
1 \l 1931
But I think the goal should be as comprehensive as
possible.
LISTNUM
1 \l 1932
COMMISSIONER KATZ: Thank
you.
LISTNUM
1 \l 1933
COMMISSIONER MORIN:
Yes. In your ‑‑ at the
end of your oral presentation you are saying that all TSP members must promote
the existence of the CCTS on all bill statements. In my mind it's a very important
proposition. We had the industry's
answer this morning but do you have some examples of this way of doing things
through other words?
LISTNUM
1 \l 1934
MS LAWSON: Good question,
and I don't have ‑‑ excuse me.
‑‑‑ Pause
LISTNUM
1 \l 1935
MS LAWSON: Yes, we think
that this is done in Australia but we are not sure. My colleague, Mr. Lawford, can probably
answer about the Australian approach.
LISTNUM
1 \l 1936
And I'm sorry. We would have
to look, and I could certainly undertake to do some research and get back to you
on that. No examples are coming to
mind at the moment.
LISTNUM
1 \l 1937
But I would, you know, reject the suggestion that you heard this morning
that it is simply too expensive to do.
I think particularly if it's a standard notification on the bill then
that should not be an overly onerous expense for the
industry.
LISTNUM
1 \l 1938
COMMISSIONER MORIN: Thank
you.
LISTNUM
1 \l 1939
THE CHAIRPERSON: Okay. Well, thank you very much for your
contribution.
LISTNUM
1 \l 1940
MS LAWSON: Thank
you.
LISTNUM
1 \l 1941
THE CHAIRPERSON: Madam
Secretary.
LISTNUM
1 \l 1942
THE SECRETARY: Thank you,
Mr. Chairman.
LISTNUM
1 \l 1943
I would just like to indicate for the record there will be a slight
change in the order of appearance to accommodate the availability of the next
participant.
LISTNUM
1 \l 1944
I would now ask Mr. Ronald Cohen of the Canadian Broadcast Standards
Council to come forward to the presentation table.
‑‑‑ Pause
PRESENTATION /
PRÉSENTATION
LISTNUM
1 \l 1945
MR. COHEN: Mr. Chairman, Mr.
Vice‑Chairman, Monsieur Conseiller, the CBSC is pleased to have the opportunity
to appear before you today to discuss with you the CBSC's complaints resolution
process.
LISTNUM
1 \l 1946
With me are our Executive Director, John McNab, and our Director of
Policy, Teisha Gaylard.
LISTNUM
1 \l 1947
The present hearing deals with the establishment of an important
institution for the public, namely the Commissioner of Complaints for
Telecommunication Services, a self regulatory body which, like the CBSC, will be
responsive to the express concerns of the public.
LISTNUM
1 \l 1948
The CBSC is pleased to have the opportunity to appear before you for the
purpose of outlining its processes in the hope that they may be usefully
illustrative to the Commission.
LISTNUM
1 \l 1949
While I expect that there will be many similarities between the CBSC and
the CCTS, there may also be divergences which may reflect nothing more than the
fact that the CCTS has been created to reflect the needs of the
telecommunication services which can be reasonably expected to differ in some
respects from those of private broadcasters.
LISTNUM
1 \l 1950
Among the more obvious underlying differences, I believe it is worth
observing that the CBSC deals with complaints relating to content rather than to
service.
LISTNUM
1 \l 1951
Consequently, one, the CBSC's decisions may take a dissimilar form from
those that will ultimately be rendered by the
Commissioner.
LISTNUM
1 \l 1952
Two, the Council's findings or conclusions may be of a different nature
as there are no pecuniary or compensatory components to CBSC
decisions.
LISTNUM
1 \l 1953
And, three, the written reasons for the CBSC's non‑quantifiable
determinations may require more time to render.
LISTNUM
1 \l 1954
In any event, it is not our intention to make comments on the CCTS'
proposed set‑up or to suggest that the extent to which it may not match that of
the CBSC implies any deficiency of planning on their part.
LISTNUM
1 \l 1955
We will talk about the CBSC's experience in the hope it will be relevant
and we will be glad to respond to any questions you may have in order to ensure
that that is the case.
LISTNUM
1 \l 1956
This is a rather nuts and bolts presentation by the CBSC, bereft,
therefore, of colourful or anecdotal components.
LISTNUM
1 \l 1957
So then, with that cautionary note, here is how the Canadian Broadcast
Standards Council works.
LISTNUM
1 \l 1958
The CBSC has a Secretariat, adjudicating panels and a national executive
which is our Board of Directors.
The Secretariat which is based in Ottawa includes the National Chair and
the Executive Director. There are
also a Director of Policy, a Manager of the CBSC's ethnocultural outreach
project and, as presently constituted, a complaints
officer.
LISTNUM
1 \l 1959
All complaints from the public, whether sent directly or indirectly to
the CBSC, generally via the CRTC, are dealt with in the Ottawa office. In fact, there is no other office,
although we do have strong adjudicator representation around the
country.
LISTNUM
1 \l 1960
While our personnel are, of course, responsive to the public, in order to
inform complainants of our processes on a 24‑7 basis we rely heavily on our
fulsome website.
LISTNUM
1 \l 1961
When adjudications are required ‑‑ and I'll say more about that
shortly ‑‑ these are undertaken by our adjudicating panels. There are five regional panels and two
national panels. Each may include
up to six public adjudicators and six industry
adjudicators.
LISTNUM
1 \l 1962
When adjudications occur, these are done by an equal number of public and
industry adjudicators from the appropriate panel sitting as no fewer than four
persons and no more than six, except in the case of national panels when, as
National Chair, I sit as a seventh adjudicator.
LISTNUM
1 \l 1963
We have an additional group of up to 16 at large adjudicators who may sit
on an ad hoc basis on any panel which is missing an adjudicator for the purposes
of a given adjudication.
LISTNUM
1 \l 1964
Each regional panel has a chair and a vice‑chair. Each national panel ‑‑ there are
two of those ‑‑ has an industry vice‑chair and two vice‑chairs are also
selected from the overall complement of public adjudicators attached to those
national panels. All of those
chairs and vice‑chairs together with the National Chair make up the CBSC's
National Executive.
LISTNUM
1 \l 1965
The CBSC currently administers four industry codes, the CAB Code of
Ethics, the CAB Sexual Portrayal Code, the CAB Violence Code and the RTNDA,
Radio‑Television News Directors Association of Canada, Association of Electronic
Journalists, as it's currently known, Code of Journalistic
Ethics.
LISTNUM
1 \l 1966
There are two additional codes currently under consideration by the CRTC
one of which, the Journalistic Independence Code, was discussed at some length
during the course of the recent diversity of voices hearing. The other is the CAB Equitable Portrayal
Code for which public comments sought by the CRTC closed about two weeks
ago.
LISTNUM
1 \l 1967
If and when approved, the latter code will replace the sexual portrayal
code.
LISTNUM
1 \l 1968
The Council also ensures compliance with the membership obligations and
standards which are set out in the CBSC manual.
LISTNUM
1 \l 1969
The CBSC publishes an annual report which outlines its activities in the
past year, discusses its decisions, describes its ethnocultural outreach
activities, summarizes the complaints statistics, identifies its own
members ‑‑ broadcast members and adjudicators and anticipates some of the
activities and trends it will engage in or encounter in the coming
year.
LISTNUM
1 \l 1970
The CBSC applies the above‑mentioned codes and membership obligations and
standards to its 625 members, which include conventional radio and television
licensees, satellite radio services and specialty service television
stations ‑‑ television services.
LISTNUM
1 \l 1971
Membership is entirely voluntary and while we have the great majority of
private broadcaster licensees, the CBSC certainly does not have every last one
of them.
LISTNUM
1 \l 1972
The CBSC's funding derives from the Canadian Association of Broadcasters
on behalf of the CAB's members and directly from those few licensees which are
members of the CBSC and not members of the CAB.
LISTNUM
1 \l 1973
The CBSC also has derived funding from significant benefits associated
with private broadcaster transactions.
LISTNUM
1 \l 1974
In every material sense the CBSC operates at arms' length, that is to say
independently from its broadcaster members. The reality is that the CAB and the
CBSC's private broadcaster members make it a point to remain scrupulously
distant from the entire adjudication process. Indeed the statistics mentioned at the
diversity of voices hearing which you will remember make it very clear that
about 75 per cent of the formal panel decisions go against
broadcasters.
LISTNUM
1 \l 1975
As a matter of procedure, once the broadcaster has filed all of its
responses and any supplementary documents, it has nothing more to do with the
file. The next the station learns
of the result is when it and the complainant receive the decision text the day
before it is released to the general public.
LISTNUM
1 \l 1976
Anyone is entitled to file a complaint, provided he or she has heard or
seen the actual broadcast about which the complaint is made. In other words, the CBSC does not
consider that persons who have, for example, read a newspaper account of or
heard a news broadcast about some allegedly offensive broadcast matter are
eligible to file a complaint.
LISTNUM
1 \l 1977
Complaints must be submitted in writing. This encourages complainants to focus
their concerns and facilitates the broadcaster's duty to respond to the
complaint. Exceptions to this in
writing principle are naturally made in circumstances in which the complainant
is unable to do so on account of some
disability.
LISTNUM
1 \l 1978
To be eligible, a complaint must be code relevant and specific. It must, in other words, identify the
broadcaster and refer to a precise enough date and time that will enable the
broadcaster and the CBSC to identify the challenged
program.
LISTNUM
1 \l 1979
The complaint must also be addressed by a CBSC code. Thus, for example, a complaint about the
clothes worn by the news anchor will not generally be addressed by the Council,
although a complaint about a news anchor not wearing any clothes might well
be.
LISTNUM
1 \l 1980
In the event that the complaint indicates that litigation or any other
form of legal redress is contemplated by the complainant, or indeed by someone
else with respect to that very broadcast, the CBSC will not deal with the
file.
LISTNUM
1 \l 1981
Time demands are such that the council prefers to let forum shoppers not
cut into scarce CBSC resources required for those committed to complaint
resolution via the self‑regulatory process.
LISTNUM
1 \l 1982
The CBSC has a very active ethno‑cultural outreach program, and details
about the CBSC and its codes and processes are provided either in hard copy
brochures or on our website in 42 languages, in addition to English and
French.
LISTNUM
1 \l 1983
Accordingly, complaints may be submitted to the CBSC in any language,
although the council will respond in one of the two official languages. That said, when a decision is rendered
about a third language program, the CBSC issues its press release in, of course,
French and English, but also in the language in which the program was originally
broadcast.
LISTNUM
1 \l 1984
The CBSC will shortly be publishing its codes in alternative formats,
although only on the basis of Canada's official languages.
LISTNUM
1 \l 1985
The CBSC provides a toll‑free number to potential complainants. It also takes calls from members of the
public in order to explain its processes and codes. As a matter of practice, the identity of
complainants is not disclosed in CBSC decisions unless the complainant is an
organization or an individual whose identity may be material to the filing of
the complaint.
LISTNUM
1 \l 1986
Every piece of correspondence submitted to the council receives a
response from the CBSC, which takes the opportunity, even when a complaint does
not concern a CBSC code or member, to tell the writer about the Canadian
Broadcast Standards Council and its processes. It is part of the CBCS's education
mandate as anticipated in Public Notice
CRTC‑1991‑90.
LISTNUM
1 \l 1987
Moreover, every incoming piece of correspondence that identifies a
broadcaster is actually forwarded to that broadcaster, even though not all of
them may be characterized as eligible complaints. Of these pieces of correspondence, the
broadcaster is obliged to respond to every eligible complaint within 21
days. The broadcaster, in effect,
provides its side of the story to the complainant, who advises within 14 days
thereafter by the submission of a ruling request or equivalent document whether
he or she wishes a CBSC panel to adjudicate the file.
LISTNUM
1 \l 1988
No reason or justification for this request by the complainant need be
given. The process is user
friendly, indeed dead simple.
LISTNUM
1 \l 1989
Nor does the CBSC require rigorous adherence to the deadlines I have just
mentioned, but the failure of a broadcaster to respond at all after a reasonable
lapse of time will result in a finding of breach against the station or
service. It is only after the
receipt of a ruling request that the CBSC's Director of Policy reviews the
complaint and calls in recordings of the challenged program to determine if the
file should be sent to a panel for an adjudication and a formal decision. In the event that the issue is one that,
on the basis of the CBSC's jurisprudence would clearly be resolved in favour of
the broadcaster, it will be dealt with by the CBSC's summary decision
procedure. In such a case, a
detailed letter from the national chair generally of four or five pages
providing reasons and replete with jurisprudential references will be sent to
the complainant.
LISTNUM
1 \l 1990
All CBSC formal decisions are released to the public and posted on the
CBSC website. The drafting of
decisions is generally not any simpler or more mathematical or predictable than
the complex subjects treated. They
are, of course, presented with written reason, which are meant to serve as
precedents or guidelines for future decisions on content
matters.
LISTNUM
1 \l 1991
The CBSC's goal, nonetheless, is to adjudicate, draft and release all
formal decisions within six months of the date of the ruling request that
triggers the council's investigative involvement in the first
place.
LISTNUM
1 \l 1992
In the event of a decision upholding the complaint, the broadcaster is
required to air a CBSC‑worded announcement of the decision result on two
occasions.
LISTNUM
1 \l 1993
In the case of radio, once during the time period when the challenged
broadcast was first aired and once during peak listening hours. In the case of television, once during
the time period in which the challenged program was aired and once during prime
time.
LISTNUM
1 \l 1994
In the event of a decision not upholding the complaint, the broadcaster
is under no obligation to announce it, although it is free to do
so.
LISTNUM
1 \l 1995
In the event that the review by the CBSC of a number of episodes of a
given program gives a panel reason to believe that a breach may recur, the CBSC
has the ability to require a broadcaster to indicate in writing the precise
steps it will take to avoid the recurrence of that breach.
LISTNUM
1 \l 1996
The foregoing is a skeletal and dry representation of the CBSC's
processes, which have evolved and become considerably more sophisticated and
sensitive to the needs of the public, the broadcasters and the regulator than
they were in the council's early days.
LISTNUM
1 \l 1997
The council has also had the opportunity to meet with other international
participants in the self‑regulatory and regulatory content area. I believe that it is fair to say that
our process and our codes fare well in any such comparisons, in no small measure
because of the participation, support and commitment of the private broadcasters
integral to our process.
LISTNUM
1 \l 1998
We wish the CCTS great success in their endeavour, and are certain that
corresponding support from their telecom services will ensure a comparable
result.
LISTNUM
1 \l 1999
We are available to answer your questions
LISTNUM
1 \l 11000
THE CHAIRPERSON: Thank you
very much.
LISTNUM
1 \l 11001
You are the gold standard for a self‑regulatory agency. Everybody refers to you as one that
works well. I am very grateful that
you have come and made a presentation.
LISTNUM
1 \l 11002
As you heard this morning, there are lots of issues for the CCTS which
are quite different than yours, but one which is very common is the industry
suggests that it should be voluntary.
You are voluntary.
LISTNUM
1 \l 11003
What happens with broadcasters who have not opted into your organization
if there is a complaint from them?
What do you do with it?
LISTNUM
1 \l 11004
MR. COHEN: Any complaint
that comes to us about a non‑member is basically sent to you, sent to the
CRTC. So, when we get complaints,
as we do, about the CBC or Radio Canada, those are sent back from us to the CRTC
because we attract complaints about all kinds of issues.
LISTNUM
1 \l 11005
When we got complaints about cable service, they were sent to the Cable
Television Standards Council.
Indeed, if we got complaints, as we might well, about local telephony, we
would send them to the CCTS.
LISTNUM
1 \l 11006
So, that is what we do with those.
LISTNUM 1 \l 11007
Where, however, you are called upon to deal with them, the result can be
a result, comme le résultat dans le cas de CHOI‑FM, qui est probablement
l'exemple le mieux connu de tous les exemples qu'on pourrait imaginer dans les
mains du CRTC, dans ce domaine.
C'est‑à‑dire on a fait une station qui ne participait pas, qui ne
s'inscrivait pas dans le domaine du CCNR.
LISTNUM
1 \l 11008
So, that is just an excellent example of a result that can
occur.
LISTNUM
1 \l 11009
THE CHAIRPERSON: You weren't
here this morning when I asked Interim Commissioner McKendry to do the very
thing that you suggest, that if he gets a complaint that doesn't fall within his
jurisdiction to send it on to us.
He said he couldn't do that, that there would be a violation of
privacy. He could only inform the
complainant that we are here, could give the complainant our number and our web
address, but he couldn't send the actual complaint
forward.
LISTNUM
1 \l 11010
I gather you do not feel such limitation?
LISTNUM
1 \l 11011
MR. COHEN: We
don't.
LISTNUM
1 \l 11012
THE CHAIRPERSON: Secondly,
this morning there was also a discussion about opting out. Have any of your members ever opted out
because a decision that you gave was unacceptable to them or
unpalatable?
LISTNUM
1 \l 11013
MR. COHEN: Never. May I add, Mr. Chairman, that not only
never, there were opportunities clearly for that to occur. Among the more obvious ones would have
been Global Television back in the days of Mighty Morphin Power Rangers. Certainly Q107, the Wick station
originally, later a Corus station in Toronto in the days of Howard Stern, it
could have been the same in the case of CHUM's station, CHOM‑FM in Montreal in
the days of Howard Stern.
LISTNUM
1 \l 11014
That is why, when I gave some considerable credit indeed to the
broadcasters at the end of the formal presentation, I meant it. There have been opportunities over time
when there might have been withdrawal and when in fact such withdrawal did not
occur, and I don't expect that it ever would honestly.
LISTNUM
1 \l 11015
THE CHAIRPERSON: Your
principal power of enforcement is in effect publicity, that you publicize when
somebody's behaviour is outside the code and it has been found to be wanting and
it becomes, if I understand it, a self‑fixing mechanism.
LISTNUM
1 \l 11016
MR. COHEN: I would say that
probably is the primary tool that we have, although again I think it is fair to
say that the broadcasters have essentially agreed to play on a level playing
field insofar as content is concerned, and by and large we are responsible for
the levelling of that playing field and the application to each of them of the
same set of standards.
LISTNUM
1 \l 11017
In the circumstances, I think they live with that in the way we all live
with the fact that on a given occasion a general election may not result in the
party that some of us have individually selected that obviously is always the
case, and yet basically we are content to play by the rules of the game, and
those are our rules of the game. It
is the levelling of the playing field and I think broadcasters feel comfortable
with the fairness of the decisions that we will render and that the same
principles will apply across the board.
LISTNUM
1 \l 11018
THE CHAIRPERSON: Lastly,
what about systemic issues? We have
heard a lot about that today. The
way the constating documents for the CCTS are, the Commissioner can only deal
with systemic issues if so asked by a special majority of the
board.
LISTNUM
1 \l 11019
You just heard CIPPIC suggesting that, no, on the contrary, that is a
part of the function that the council demands of the Commissioner. You should be doing
it.
LISTNUM
1 \l 11020
You administer codes. I am
sure the codes do not talk about trends and systemic issues. What do you do in terms of trends and
systemic issues?
LISTNUM
1 \l 11021
MR. COHEN: First of all, we
are not going to make a comment about what the Commissioner should or shouldn't
do in that regard.
LISTNUM
1 \l 11022
THE CHAIRPERSON: I
appreciate that. I just gave a
little background.
LISTNUM
1 \l 11023
MR. COHEN: Absolutely. I fully
understand.
LISTNUM
1 \l 11024
The CBSC would like to believe that when it comes to content there are
not issues which are likely to fall outside either the actual wording or the
implied wording of the codes. We
are in a very fortunate position.
LISTNUM
1 \l 11025
We don't administer statutes and regulations in the way in which the CRTC
must do, in the way in which courts must do. We operate much more along the lines I
think desired by the broadcasters, possibly desired by the Commission, even on
an unofficial basis, not to be presumptuous, and that is that we are there to
solve problems that are brought to our attention by members of the
public.
LISTNUM
1 \l 11026
We don't like to look at our codes and say that our codes limit us and
that a genuine substantive issue, systemic indeed, trendy or of the nature of a
trend by nature falls outside. So
we will attempt always to resolve an issue.
LISTNUM
1 \l 11027
Let me give you a very concrete example.
LISTNUM
1 \l 11028
When the violence code came into effect, the new violence code at the end
of October, 1993, it took effect on the 1st day of January, 1994. It dealt only with matters relating to
violent content on television programs.
It provided, among other things, a watershed of 9:00 p.m. to 6:00 a.m.
for adult content of a violent nature.
LISTNUM
1 \l 11029
Over the course of time, what the CBSC did was to interpret those words,
however clear and specific they were, they applied to violent content intended
for adult audiences. We gradually
interpreted that to mean any form of adult content, whether sexual, whether
relating to course language, that this provision that was put in the violence
code was really understood by broadcasters to be a broad application for the
benefit of tous les foyers in the country.
LISTNUM
1 \l 11030
So, we interpreted that provision, which I must admit to you is very
clear on its face, speaking as a lawyer to a lawyer, we interpreted that much
more broadly and gradually over time, when the CAB Code of Ethics was revised in
2002, that Code of Ethics included a provision to deal with the watershed and
all forms of adult programming. But
between 1994 and 2002, we dealt with that trend, if you will; we dealt with that
societal issue on that basis because it seemed that we would be rendering a more
responsive service to the people in this country if we did that than if we
looked at the issue and simply said, sorry, we can't do it, there is no
provision to help.
LISTNUM 1 \l 11031
So, we operate on the basis, I would say, of, you know, le Code civil du
Québec, qui contient tous les principes qui sont applicables, en effet, à toutes
les situations imaginables, en principe.
LISTNUM
1 \l 11032
That is how we function really with our codes. We try to extend them to cover all
possible situations dealing with complaints that come to
us.
LISTNUM
1 \l 11033
THE CHAIRPERSON: Thank
you.
LISTNUM
1 \l 11034
I will come back to the voluntary bit. You have a near 100 per cent
subscription. To what extent do you
attribute that to the carrot which we hang out to broadcasters in suggesting
that we will release them on certain conditions of licence subject to them
becoming a member of your association?
Is that a meaningful incentive or is it the success of your organization
that attracts people?
LISTNUM
1 \l 11035
MR. COHEN: Well, of course,
with such a tempting question ‑‑
LISTNUM
1 \l 11036
THE CHAIRPERSON: That wasn't
meant as a softball.
‑‑‑ Laughter / Rires
LISTNUM
1 \l 11037
MR. COHEN: Clearly I would
like to believe that it has a good deal to do with the success of the
self‑regulatory process that we have put in
place.
LISTNUM
1 \l 11038
I also really do believe that the broadcasters look with a sense of some
pride at a system that they set up.
There is no denying that.
They set it up with the Commission beginning back in 1986 and then pretty
much had it structured by 1988, and then by 1990 it was incorporated and was in
place and so on.
LISTNUM
1 \l 11039
I think they like the result.
Does some of it also relate to the fact that if we have to bring in a
pitcher in late innings of the ballgame, that you are the pitcher, there may be
something that relates to that, but I think that they like what they see, they
like the fact that they all play with the same set of
rules.
LISTNUM
1 \l 11040
I think it is the whole process together. But I think it is important ‑‑ and
that is why I said that in my concluding remarks ‑‑ I think it is very
important that everybody lines up and plays ball in that way. That is the only way it can really work
effectively.
LISTNUM
1 \l 11041
THE CHAIRPERSON: Thank
you.
LISTNUM
1 \l 11042
Commissioner Morin.
LISTNUM 1 \l 11043
CONSEILLER MORIN : Oui. En
page 4, vous dites que 75 pour cent des décisions qui sont rendues le sont
contre les radiodiffuseurs, et vos jurys, si je peux dire, sont représentés, à
part égale, par des gens de l'industrie et par le public en général, et malgré
tout, vos jurys, au niveau national comme au niveau régional, rendent des
décisions contre l'industrie.
Alors, ça veut dire ça que, finalement, il faut qu'il y ait des membres
de l'industrie qui votent ces décisions là, qui prennent
position.
LISTNUM 1 \l 11044
Au fond, est‑ce que vous pourriez nous dire simplement comment ça
fonctionne, en général? Autrement dit, est‑ce qu'on assiste toujours à des blocs
très serrés et, finalement, il y en a un qui penche d'un côté ou c'est souvent
des décisions partagées par les deux blocs?
LISTNUM 1 \l 11045
Et au fond, comme question finale, est‑ce que, au fond, ce qui est
important aussi, c'est les codes de l'industrie, auxquels vous avez fait
référence au début de votre exposé, pour prendre des
décisions?
LISTNUM 1 \l 11046
M. COHEN : Tout d'abord, je pense que je l'ai mentionné à l'autre
audition, ça fait déjà à peu près deux mois, quoi.
LISTNUM 1 \l 11047
Ce qui arrive, et ne pas oublier ce fait, c'est que dans le cas de 397
décisions sur les 405 décisions qui sont rendues à date, un total de 405
décisions rendues de 1991 à date, 397 étaient unanimes.
LISTNUM 1 \l 11048
Alors, ce n'est pas tout simplement une question de dire qu'il y avait
des gens dissidents, il y avait un ou deux gens dissidents. Non. Les décisions étaient unanimes dans la
plupart des cas.
LISTNUM 1 \l 11049
Causer par quoi? Bien,
disons que quand j'ai mentionné à la dernière audition, et vous faisiez partie
du banc de décision à ce moment là, je pense que ce qui est important, c'est que
le chiffre de plus ou moins aux alentours de 75 pour cent est un chiffre
applicable dès 1999 et 2000, c'est‑à‑dire cette année
fiscale.
LISTNUM 1 \l 11050
Ce qui est important, c'est que nous avons établi un mécanisme pour
rendre le nouveau fardeau que nous éprouvions à ce moment là plus
efficace.
LISTNUM 1 \l 11051
Avant cette date là, on n'avait pas le système de décision sommaire que
j'ai mentionné aujourd'hui. Nous
n'avions que les décisions formelles.
Alors, les pourcentages de décisions rendues contre les radiodiffuseurs
étaient plus bas. Il y en avait
suffisamment, bien sûr, mais c'était plus bas.
LISTNUM 1 \l 11052
Mais dès cette date là, nous avions ce mécanisme de décision sommaire,
que j'ai mentionné, sur la décision qui est rendue dans un cas où la décision ne
sera pas rendue contre un radiodiffuseur, d'un côté. D'un deuxième côté, disons que le
principe était tellement bien établi depuis tellement longtemps que le résultat
de la décision sera évident.
LISTNUM 1 \l 11053
Je vous donne l'exemple de Janet Jackson et son sein nu, par
exemple. Excellent exemple vu la
crise qui a été causée aux États‑Unis.
C'est de la chance que les Canadiens n'étaient pas trop préoccupés par
cette affaire. Mais quand même, il
y en avait quelques Canadiens qui l'étaient.
LISTNUM 1 \l 11054
Mais vu que nous avions rendu des décisions depuis, en effet, 1993,
disant qu'un sein nu à la télévision n'empêcherait pas une attitude, disons,
relaxe de la part des Canadiens, que le pays ne se trouverait pas bouleverser
par cette situation, alors, il y avait, en effet, tellement de jurisprudence de
cette nature que... je crois que c'était 2004. J'oublie la date quand même du Super
Bowl en question, mais nous avons rendu notre décision par voie d'une décision
sommaire. Ce n'était pas même une
décision formelle demandant un comité de décision.
LISTNUM 1 \l 11055
Tout ceci pour dire que, avec ce système efficace en place, il n'est pas
essentiel pour nous de rendre une décision formelle en faveur d'un
radiodiffuseur dans le cas de cet exemple de sein nu à la
télévision.
LISTNUM 1 \l 11056
Alors, à ce moment là, les pourcentages de décisions formelles publiques
affichées sur notre site web, ces décisions sont, en forte majorité, rendues
contre les radiodiffuseurs, vu l'autre mécanisme qui existe et qui facilite, en
effet, le rendement des décisions, des décisions non publiques plus efficaces et
tout ça.
LISTNUM 1 \l 11057
Je ne sais pas si ça répond un petit peu à la
question.
LISTNUM 1 \l 11058
CONSEILLER MORIN : Oui. En
fait, ma deuxième question, c'était : Au niveau des codes, est‑ce que c'est
vraiment important, parce que je suis, moi‑même, surpris des chiffres
là?
LISTNUM 1 \l 11059
M. COHEN : Oui.
LISTNUM 1 \l 11060
CONSEILLER MORIN : L'unanimité sur des questions assez subjectives quand
même.
LISTNUM 1 \l 11061
M. COHEN : Oui.
LISTNUM 1 \l 11062
CONSEILLER MORIN : Alors, à plus forte raison, quand on a des plaintes
précises, on devrait, en théorie, atteindre un niveau peut‑être d'unanimité
encore plus grand, pourvu que les codes sont très clairs au niveau de la régie
des plaintes comme telle.
LISTNUM 1 \l 11063
M. COHEN : Les codes sont essentiels, sont très importants. Les principes décrits dedans sont très,
très importants, sont de grande valeur.
Mais de là à conclure que, nécessairement, toute question imaginable
est... disons, le résultat de chaque décision serait plus ou moins mathématique
suivant l'existence de ces grands principes, non, pas du
tout.
LISTNUM 1 \l 11064
Ça prend quand même l'application, une pensée, un raisonnement, et c'est
pour ça que nous rendons des décisions motivées. C'est parce que ça prend du
temps.
LISTNUM 1 \l 11065
On ne commence pas nécessairement chaque réunion d'un comité de décision
avec l'unanimité, pas du tout. On
commence très souvent avec des personnes qui sont rangées d'un côté et des
personnes qui sont rangées de l'autre, et pas nécessairement question de
l'industrie versus le grand public.
LISTNUM 1 \l 11066
On peut commencer comme ça, mais en discutant les enjeux, en regardant
les précédents, la jurisprudence, on arrive, la plupart des fois, à une décision
unanime. Alors, ça résulte des
codes. Ça résulte de la
discussion. Ça résulte du jugement
non doctrinaire, si vous voulez, de la part des gens qui
participent.
LISTNUM 1 \l 11067
CONSEILLER MORIN : Alors, de votre expérience, le fait qu'il y ait deux
groupes, l'un du public et l'un de l'industrie, qui soient sur le même niveau,
ce n'est pas une objection fondamentale pour le fonctionnement de
votre...
LISTNUM 1 \l 11068
M. COHEN : Aucunement. Et
pour ce qui est de la crédibilité du système, je pense que c'est
essentiel.
LISTNUM 1 \l 11069
Ça ne serait pas une bonne idée, je pense, d'avoir tout simplement les
gens du grand public, sans avoir la participation, le jugement, l'expérience des
gens de l'industrie. Ça aide
énormément, et souvent, franchement, les gens de l'industrie sont souvent plus
forts sur eux‑mêmes que les gens du grand public parce qu'ils savent, hein! Est‑ce que c'est quelque chose que je
ferais à ma station?
Aucunement. Je vais vous
dire ce que je ferais dans de telles circonstances.
LISTNUM 1 \l 11070
Alors, c'est bien important d'avoir des gens qui, d'un côté, du côté,
disons, du grand public, ne croient pas nécessairement que les radiodiffuseurs
ne peuvent jamais avoir raison, ça serait déloyal, et de l'autre côté, d'avoir
des représentants de l'industrie qui pensent que l'industrie ne peut jamais se
tromper.
LISTNUM 1 \l 11071
Alors, il faut avoir des gens qui sont raisonnables des deux côtés, et le
résultat, je pense que c'est vraiment de
valeur.
LISTNUM 1 \l 11072
CONSEILLER MORIN : Mais si vous aviez... c'est vous qui nommez les gens
du grand public, mais si vous aviez à nommer des gens qui seraient, disons, des
watchdogs de l'industrie de la radiodiffusion, est‑ce que vous seriez à
l'aise? Parce qu'on parle ici de
consommateurs, est‑ce que vous seriez à l'aise de nommer des gens qui sont
plutôt critiques, d'une façon positive, qui sont critiques de l'industrie de la
radiodiffusion? Est‑ce que vous
seriez à l'aise de les nommer sur vos comités?
LISTNUM 1 \l 11073
M. COHEN : Oui. Oui, et on
l'a fait dans le passé. Je vais
vous donner un exemple.
LISTNUM 1 \l 11074
L'ancienne directrice exécutive de Media Watch, qui était sûrement une
organisation qui critiquait l'industrie de la radiodiffusion, elle est sur un de
nos comités de décision depuis probablement une dizaine d'années. Ça, c'est Meg
Hogarth.
LISTNUM 1 \l 11075
Shari Graydon, qui est un nom qui vous est peut‑être connu également,
elle était très impliquée avec Media Watch. Elle critique l'industrie de la même
manière. Elle vient de devenir
membre d'un de nos comités de décision.
LISTNUM 1 \l 11076
Fo Niemi, qui est le directeur exécutif de CRAR à Montréal, je n'ai pas
souvent entendu des mots positifs de lui concernant les radiodiffuseurs, même
pas concernant le CCNR, pas souvent.
Il fait partie de notre comité de services
spécialisés.
LISTNUM 1 \l 11077
Non, on n'a pas peur d'avoir des gens qui peuvent, d'après leur
expérience... critiques de nous autres ou de l'industrie. On les a. Je pense que ça ajoute, enfin, à des
résultats qui sont vraiment bien pensés, et c'est ça qui est important, en fait,
pas de whitewash, pas de blanchissage.
LISTNUM
1 \l 11078
THE CHAIRPERSON: Thank you
very much.
LISTNUM
1 \l 11079
COMMISSIONER KATZ: I have
one quick question, if I may, clarification more than anything else, Mr.
Cohen.
LISTNUM
1 \l 11080
On page 5 you talk about the broadcaster being obligated to respond to a
complainant within 21 days. Is that
business days or calendar days?
LISTNUM
1 \l 11081
MR. COHEN: Calendar
days. But the truth is that we are
not overly demanding in that regard.
Sometimes you get complaints in large numbers back in the Howard Stern
days, for example, even possibly with the Bruce Allen situation, where we I
guess had about 300 complaints. The
broadcaster sometimes needs a bit more time, for one reason or another. So, we are flexible with that, but 21
calendar days is what we aim at.
LISTNUM
1 \l 11082
THE CHAIRPERSON: Thank you
very much.
LISTNUM
1 \l 11083
I gather our next panellist is going to be with us on video, so we will
take a short break while we make the connection.
LISTNUM
1 \l 11084
THE REGISTRAR: Mr. Chairman,
again, the ARCH presentation will be tomorrow morning.
LISTNUM
1 \l 11085
THE CHAIRPERSON: We will
still have a break. Let's have a
ten‑minute break.
‑‑‑ Upon recessing at 1533 / Suspension à
1533
‑‑‑ Upon resuming at 1542 / Reprise à
1542
LISTNUM
1 \l 11086
THE CHAIRPERSON: Okay,
Madame Boulet, who is next?
LISTNUM
1 \l 11087
THE SECRETARY: Thank you,
Mr. Chairman.
LISTNUM
1 \l 11088
We will now proceed with the next party, which is the Consumers Council
of Canada and the National Anti‑Poverty Organization.
LISTNUM
1 \l 11089
Mr. John Lawford will be presenting his colleague, after which you will
have 20 minutes for your presentation.
LISTNUM
1 \l 11090
Mr. Lawford.
PRESENTATION /
PRÉSENTATION
LISTNUM
1 \l 11091
MR. LAWFORD: Thank you,
Madam Secretary.
LISTNUM
1 \l 11092
My name is John Lawford and with me today is Esteban Uribe, who is our
articling student at the Public Interest Advocacy Centre.
LISTNUM
1 \l 11093
PIAC is here representing the Consumers Council of Canada and the
National Anti‑Poverty Organization. I am going to refer to us as the Consumer
Groups.
LISTNUM
1 \l 11094
The Consumer Groups already have provided the Commission with written
comments in this proceeding and we will follow those comments but we are here to
emphasize the most important parts and we are available for questions from the
panel, en anglais ou en français.
LISTNUM
1 \l 11095
The Commission has called for comments in this oral hearing to be
structured according to the conduct letter and we will generally follow that in
the requested order but we shall deviate from that where we wish to emphasize
the viewpoint of a customer looking for redress with his or her
telecommunications services.
LISTNUM
1 \l 11096
This proceeding, Mr. Chair, is really about the type of
telecommunications ombudsman the customers of telecommunications services in
Canada will get in light of the government's order to create such an
ombudsman.
LISTNUM
1 \l 11097
According to the Cabinet order, it must be at least two things: independent of industry and effective
for consumers.
LISTNUM
1 \l 11098
Membership. Membership must
be mandatory. The Cabinet order
clearly says:
"And whereas the Government in
Council also considers that all telecommunication service providers should
participate in and contribute to the financing of an effective consumer agency
and that its structure and mandate would be approved by the Commission..." (As
read)
LISTNUM
1 \l 11099
Alongside that clear text we have the CCTS Members reading, which in
their comments we believe is cockeyed.
This is quoting them:
"The Members note that the order in
council contemplates a voluntary industry body that would be an integral
component of a deregulated telecommunications market. The order in council indicates that all
TSPs should participate in and contribute to the financing of the agency but not
that they must." (As read)
LISTNUM
1 \l 11100
The Commission should note the Members' false logic in linking the
unsubstantiated statement that the order in council contemplates a voluntary
industry body, which is nowhere in the text of the order because the word
"voluntary" is not even mentioned there, with the reading of "all" or "should"
that we believe only comes from the mind of Planet ILEC.
LISTNUM
1 \l 11101
The Telecommunications Policy Review Panel, as noted in Recommendation
6.4, said:
"All telecommunication service
providers should be required to be members in good standing of their proposed
telecommunication consumer agency."
LISTNUM
1 \l 11102
MR. LAWFORD: We do not
understand the members' reticence to require all telecommunication service
providers to join the ombudsmen scheme.
If they do allow outliers customers will continue to be victimized by
shady or outrageous schemes but the entire industry will appear to sanction
these operators by denying their customers
redress.
LISTNUM
1 \l 11103
The Commission should also note there is a very real possibility that a
major cable, internet or telephone company simply will not join the scheme or
will quickly dropout after a dispute with the governing body of the
ombudsman. In such a case, the
consumer groups urge the Commission to hold that it is inequitable under the
clear terms of the Cabinet order that the customers of a particular carrier
should have less independent redress than the customers of another
carrier.
LISTNUM
1 \l 11104
The Commission should also note the perverse incentive that voluntary
membership will dangle before even the largest telecommunication service
providers. If they dropout of the
scheme there may be savings and the business sense in this case may engender
enough carriers to leave the scheme so it is either ineffective or
collapses.
LISTNUM
1 \l 11105
Finally, regarding the TSPs' reticence to enter into the ombudsman
scheme, we note that this seems largely based on the proposed cost
structure. Now, here I'm talking
about the smaller TSPs.
LISTNUM
1 \l 11106
This inequity is easily avoided in our opinion by adopting the Australian
TIO funding model where providers pay only for their own complaints and pay a
portion of overhead proportionate to the complaints that they engender. When they have no complaints they do not
pay. If their complaints are indeed
few they will pay little and far less than the CCTS membership requires, even
after it's been reduced as was proposed in the documentation this
morning.
LISTNUM
1 \l 11107
Turning now to governance and independence, the companies created in
advance of this hearing the voluntary Commissioner for Complaints for
Telecommunications Services, or CCTS.
Its independence from the telecommunications industry, as required by the
Cabinet order, is illusory.
LISTNUM
1 \l 11108
First, the composition of the board of directors leaves effective control
in the hands of the industry and actual veto power over major actions of the
ombudsman. This is accomplished by
pretending that the three industry director positions that the companies have
allotted themselves will not vote as a block against the four unorganized
independent directors whose independence appears to be predicated on their being
as far as possible from being aligned with the interests of customers who are,
after all, the clients of the ombudsman and the reason we are here today, as
possible.
LISTNUM
1 \l 11109
Secondly, major decisions of the board such as the appointment or removal
of a commissioner or removal of a board chair, dispute resolution powers and
duties of the commissioner as outlined in the procedural code; amendment of that
code and approval of industry codes of conduct and standards, and themselves
only required on request of a TSP member, are required to be approved not only
by a majority but also by the special two‑thirds majority or extraordinary
resolution.
LISTNUM
1 \l 11110
We do not take issue with the effective industry veto of financial
matters such as the CCTS budget.
However, the matters that are alluded to all relate to the core mandate
and operation of the Commissioner.
Such power clearly does not permit the Commissioner independence from the
telecommunications industry.
LISTNUM
1 \l 11111
The Commission must approve, according to the order, only a body that has
this independence from the telecommunications industry, and that can only be
achieved in our opinion by balancing an industry block of directors with a block
of directors that clearly has the interests of consumers foremost in mind in
appointing or finding another mechanism to choose a tiebreaking neutral director
and chair.
LISTNUM
1 \l 11112
This is the approach in Australia.
But a telecommunications industry ombudsman takes it one step further by
making a balance of industry and consumer groups for a policy and operational
level, called "the council" while leaving purely financial and corporate matters
to the TIO, which is a telecommunications industry member‑only
board.
LISTNUM
1 \l 11113
And I will just note parenthetically that that seems to be the only way
that you can satisfy the order in council, because it says it has to be both
industry funded and independent and it's the best corporate structure from our
point of view to do that.
LISTNUM
1 \l 11114
Independence could also be achieved, however, by having no members of the
industry on the board and seven members completely unaffiliated with industry or
consumer groups; seven people off the street. Arguably, the board's independence from
industry could be assured with seven consumer representatives and no industry
directors at all. While this is
probably impractical and counterproductive, it illustrates the main point, and
that is that the ombudsman is tasked by cabinet to be independent from industry
and not independent from consumers or consumer
groups.
LISTNUM
1 \l 11115
We therefore urge the Commission to adopt a practical Australian model
and add an operational council that is balanced in membership between industry
and consumer members and leave a narrow set of corporate duties to the
wholly‑industry populated board of directors.
LISTNUM
1 \l 11116
I am going to return to the poll that was referred to this morning. It was done by Bell and TELUS together
for the Telecom Policy Review Panel, and Commissioner Morin referred to it. In that case there was 85 percent
support for the mediation and arbitration role of the ombudsman and 86 percent
for the ombudsman to suggest guidelines or best practices to the industry after
repeated complaints of a particular type, and to report on these
publicly.
LISTNUM
1 \l 11117
While the companies' proposal covers some of the mediation and
arbitration ground, it covers none of the investigation of repeated problems and
suggested guideline ground.
Instead, upon extraordinary resolution which itself only initiated upon
the request of an industry member for a guideline, the board may authorize to
the ombudsman to suggest to the industry, and maybe even privately, a
guideline.
LISTNUM
1 \l 11118
We suggest to the Commission that the likelihood of, in effect,
guidelines, and we give an example; internet service providers unilaterally
changing contract terms in consumer contracts, whether that's due to supply
changes from their wholesaler or not, and the consumer is not a party of that,
would be extremely unlikely to arrive out of that
structure.
LISTNUM
1 \l 11119
But this investigation and guideline power is referred to in the cabinet
order which also nicely sums up the expected mandate of the whole ombudsman's
office.
LISTNUM
1 \l 11120
The mandate of the effective consumer agency should include the
development and approval of industry ‑‑ of related industry codes of
conduct and standards, an annual report and it should identify issues or trends
that may warrant further attention by the Commission or
government.
LISTNUM
1 \l 11121
The CCTS members, though, in section 23(b)(9) and section 86 of the CCTS
bylaws, are conflating both of these requirements by talking about the
development or approval of industry‑related codes of conduct and standards and
the requirement to, as appropriate, identify issues or trends that may warrant
further attention by the Commission or
government.
LISTNUM
1 \l 11122
But more seriously, the reporting of bad trends by the industry is
subject to the approval in section 86 of the bylaws and it has to be on the
request of the TSP members.
Further, it shall maintain the confidentiality of any telecommunications
service provider members.
LISTNUM
1 \l 11123
Obviously, such trend reporting is contrary to the interests of all the
carriers and the individual carriers if they are so identified and, thus, is
likely to be suppressed in an industry‑created version of this ombudsman with
this power. The ombudsman should be
able to follow the cabinet order and perform these core functions without
industry approval and should be able to name the actors, a task that would be
difficult without independence from the industry and is practically impossible
under the CCTS scheme.
LISTNUM
1 \l 11124
Now, regarding the Commissioner's annual report, the CCTS members
undertake in their comments to do that.
Consistent with the requirements set out in the order in council, CCTS
will publish the annual report in which it will describe the nature and number
and resolution of eligible complaints for each TSP. That, as I understand it, has been
accepted and is explicitly specified in the order in
council.
LISTNUM
1 \l 11125
But we just wanted to bring to the Commission's attention that the
Australian report from the TIO is wonderful in this regard and it goes into lots
of detail, case studies, and it's an excellent resource for all parties in the
industry. However, the U.K. OTELO
model, which we haven't discussed much today, is much more brief and much less
informative and I haven't been able to find the annual report of CISAS, which is
more the wireless ombudsman in the U.K.
But that will ‑‑ that obviously doesn't aid people trying to improve
the industry either from the consumer end or from
government.
LISTNUM
1 \l 11126
We turn now to the thorny issue of jurisdiction over regulated
services. At present and in
practice, no consumer really gains redress directly from the CRTC with the
exception of some wireline disconnections unless a consumer group takes up the
issue as well.
LISTNUM
1 \l 11127
If the consumer is foreborne and regulated, telecommunication services as
noted means nothing. Again, they
should be afforded similar remedies in similar situations. And the only difference in many cases
will be a particular area code that has been deemed competitive while another
area has not, but the service will be exactly the
same.
LISTNUM
1 \l 11128
For customers in small ILEC‑controlled areas, they may be permanently
shutout from consumer remedies without the extension of the ombudsman's scheme
to regulate its services. This is
counterintuitive to the consumer and inequitable. Again, we invite the Commission to view
this proceeding from the viewpoint of the customer above all and to err, if
anywhere, on the consumer's side.
LISTNUM
1 \l 11129
We are, again, mystified that TSPs would not wish to please their
customers in regulated areas as much as in foreborne areas, especially as they
are well aware of the lack of effective means of redress open to customers in
these types of complaints in individual cases in regulated telecom
services ‑‑ and that is also mentioned at page 6‑7 of the TPRP
report ‑‑ and especially since they also confidently assert that soon all
their territories will be foreborne.
LISTNUM
1 \l 11130
This is why we urge the Commission on behalf of potential users of the
ombudsman services to include regulated services and the mandate of the
ombudsman.
LISTNUM
1 \l 11131
Other matters of scope for CCTS are unnecessarily narrow and these have
been treated to some extent with specific propositions. They are detailed in our written
submission and we will address them in the written reply. However, we did touch in questions a
little bit on matters such as prices and matters such as advertising ‑‑
false advertising.
LISTNUM
1 \l 11132
Just if I could take one second to address that in my comments, capped
services is in the Australian report which came out two days ago from 2007. They cover advertising of capped
services and unlimited rates, and this is the sort of thing that we are talking
about. We are not talking about
regulation of actual prices through the ombudsman. We are talking about advertising of
prices that lead people into telecom contracts.
LISTNUM
1 \l 11133
We also wish to draw to the attention of the Commission, based on the
CCTS' own numbers so far, just how many complaints are rejected already in one
month; 90 as opposed to 99, which they call "in scope". If you add to this the 12 rejected
because they are from non‑members, we are already at 102, which is more rejected
than accepted.
LISTNUM
1 \l 11134
The consumer groups submit there is no reason for the ombudsman not to
have concurrent jurisdiction with the Office of the Privacy Commissioner, which
is currently overwhelmed with complaints and behind. It has no power, importantly, to award
any damages.
LISTNUM
1 \l 11135
Obviously, we should also have coordination with agencies that can also
help consumers and that can be undertaken with a view to solving the consumer's
problem most expeditiously by the best method. But there is no reason to cut off CCTS
or ombudsman jurisdiction but, rather, to channel it by interagency protocols
that minimize the burden on the complainant and keep the issue moving
forward.
LISTNUM
1 \l 11136
By far, however, in our view the biggest loophole in the whole CCTS
scheme is the contract limitation of liability exception which the panel has
already explored to some extent with the CCTS, but which we understand to limit
the Commissioner's monetary jurisdiction in many cases to zero. And I'll deal more with that on
remedies.
LISTNUM
1 \l 11137
Telemarketing, the consumer groups do not support having the CCTS handle
the telemarketing complaints.
Rather, that should be a separate body.
LISTNUM
1 \l 11138
What I don't think is made clear in our written materials is that
we ‑‑ or I think it is clear in the written materials ‑‑ is that we
still want to have someone who calls the CCTS note that it is a telemarketing
complaint but then have a seamless method for transferring them maybe on a hot
call, as we were talking about this morning, to the do not call list when it is
available. And in the meantime,
they should take telemarketing numbers so that we have some idea of how many
people are calling, asking where that do not call list
is.
LISTNUM
1 \l 11139
Complaints procedures: I am
going to move to an area that may seem insignificant but it's huge for users,
and it was dealt with a bit this morning.
Under the CCTS model, although a complainant may be advised on how to
file a complaint by telephone, the complainant must prepare a written complaint
to CCTS. The written complaint may
be filed by letter, mailed in, faxed or filled out on the web page form. And the problem with that is that when
requiring written complaints completed by the complainant, it greatly
discourages the filing of complaints.
LISTNUM
1 \l 11140
First, the complainant may simply not have the internet access or extra
step ‑‑ or the extra step of writing out the complaint, possibly after
having many frustrating interactions with a company made just simply to
encourage them to abandon their claim.
LISTNUM
1 \l 11141
The complainant may also not have English or French as their first
language and experience difficulty, or not be able to write in those
languages.
LISTNUM
1 \l 11142
Many Canadians who take phone service are functionally illiterate or
experience extreme difficulty in writing.
LISTNUM
1 \l 11143
Blind users, as noted, may or may not have a reliable method for putting
complaints in written form.
LISTNUM
1 \l 11144
And the exclusion of e‑mail complaints, which are effectively identical
to the web form, is not allowed under the CCTS, although they're moving on that
this morning, but it seemed baffling at the time.
LISTNUM
1 \l 11145
The practical effect of the writing requirement though we would want to
underline is just a discouraging of the number of bona fide complainants and is
sending out a barrier to consumer redress.
LISTNUM
1 \l 11146
I'll just note that the telephone officers in the Australian TIO take
telephone complaints and they have a computerized system that leads them through
taking the complaint, and it's sort of a tree system where they go down from
level to level and it's almost like a computer program that they tick off the
boxes and it produces the complaint at the end.
LISTNUM
1 \l 11147
There's no reason why we can't do that here and there's no reason why
Canadians should be put through the extra step of writing out the complaint
themselves, unless they're required to do ‑‑ unless they choose to do so,
excuse me.
LISTNUM
1 \l 11148
Remedies. The maximum
damages remedy of a thousand dollars is too low, it should be 10,000 as
recommended by the Telecom Policy Review Panel. And there is a suggestion in the PIAC,
Ombudsman report that it should be a thousand dollars, and I'll take
responsibility for that because I wrote it, but at that time, and since that
time, it's become clear to PIAC, myself and the consumer groups that many
consumer disputes, especially over cell phone and Internet access, tend to
involve larger amounts often made higher by disputes festering for some months
or years, and this is especially so with small business accounts where they may
have many accounts that are in dispute.
LISTNUM
1 \l 11149
If the amount is limited to only $1,000 many individuals will not be able
to obtain sufficient redress in cases where the Ombudsman finds the company was
wrong.
LISTNUM
1 \l 11150
And, as mentioned above, the Commission must refuse the companies the
luxury of the limited liability exception.
Such a limitation reduces the Ombudsman's monetary remedy power to about
zero. But with no power to order
monetary redress in final decisions in the individual cases, the Ombudsman also
loses the valuable persuasive power that would be invaluable in quickly and
effectively settling disputes before that stage with the
companies.
LISTNUM
1 \l 11151
For the review period, if this thing gets going, we believe that there
should be a period of time before which it should be reviewed. To a large extent it matters what it
looks like as to how long it should be before it's reviewed. We're suggesting five years if it's well
functioning so that there's enough data for the Commission to look
at.
LISTNUM
1 \l 11152
Public awareness, that's the last point. Public awareness is absolutely essential
to consumers and the Ombudsman scheme cannot be effective where they don't know
it exists. Customers will not all
experience the problem immediately, but when they do they will need the
Ombudsman services; therefore, there should be a positive ongoing obligation on
the part of carriers, not only to mention and explain the Ombudsman, but to
promote it.
LISTNUM
1 \l 11153
And to that end, all bills should be required to print the phone number
of the Ombudsman on them and there should be a standard message to call if there
is a dispute that cannot be resolved by the carrier.
LISTNUM
1 \l 11154
And this is the point that some people were raising about how difficult
it would be to put that on bills.
LISTNUM
1 \l 11155
Well, you're not going to have people calling the Ombudsman if it says
right on the message, don't call us unless you've tried to work this out with
your carrier first, but if you have problems after that stage you can call
us.
LISTNUM
1 \l 11156
For services that do not provide regular bills, we must remember these
people as well such as pre‑paid mobile, there should be other contact
methods.
LISTNUM
1 \l 11157
The Australian TIO was recently reviewed and a major complaint of
consumer groups was that the
carriers were not referring customers to the TIO, even though they have a
positive duty to do so when a customer requests external resolution or the
customer remains unsatisfied.
LISTNUM
1 \l 11158
And I'll just note that in this 2007 report from the TIO, starting at
page 32, there are references to the numbers of complaints about not being
referred to the telecom Ombudsman and now the telecom Ombudsman in Australia
requires when you get a call from a customer to ask that customer, were you
referred by your carrier. And so
now they've got data on this public awareness effort by the
companies.
LISTNUM
1 \l 11159
Canadian carriers should have this duty to refer customers to our
Ombudsman and such referrals ideally should be sanctioned with an AMP if that
power is ever given to the CRTC.
LISTNUM
1 \l 11160
But the Ombudsman scheme itself could have a penalty mechanism to require
additional payment, for example, for lack of referral so that your complaints
get more expensive if you don't refer.
LISTNUM
1 \l 11161
The Ombudsman could have a mystery shop power to see which companies are
not referring.
LISTNUM
1 \l 11162
And, finally, companies should all have the requirement to refer to the
Ombudsman on all of their web pages and everywhere where they solicit customer
or small business accounts and on all pages within their customer service zones
online, such as the My Bell section of Bell Canada's
website.
LISTNUM
1 \l 11163
Thank you very much. We're
pleased that the Ombudsman is moving forward and we hope we've been of
assistance to the Commission.
LISTNUM
1 \l 11164
And I'm, as I said, happy to take any questions.
LISTNUM
1 \l 11165
THE CHAIRPERSON: Thank you,
Mr. Lawford.
LISTNUM
1 \l 11166
As you yourself said, there is very little difference, if I understand
it, between your presentation and CIPPIC's. You seem to correspond on all major
issues.
LISTNUM
1 \l 11167
If I ask you, you know, you can't have everything in life,
prioritize. Which is your highest
priority; of the points that you made in your submission, what is No.
1?
LISTNUM
1 \l 11168
MR. LAWFORD: The
independence of the Commission is not assured at the moment, or the
Ombudsman. The thing I would want
most would be enough representative and from dedicated consumer groups in the
control of the corporation to make a difference.
LISTNUM
1 \l 11169
THE CHAIRPERSON: So, the
Australian model of five and five and the independent chairman is what you are
saying?
LISTNUM
1 \l 11170
MR. LAWFORD: Yes, something
like that.
LISTNUM
1 \l 11171
THE CHAIRPERSON: You heard
Mr. Bibic this morning making quite clear that this is a Board that deals with
the governance of the corporation, the investigation, redress and everything
done by the Commissioner is totally at his discretion and without any guidance
or interference from the Board.
That doesn't satisfy you, I gather?
LISTNUM
1 \l 11172
MR. LAWFORD: It would
satisfy me if that was true fully, but it's not because of the limitations that
they've put on the changing of the procedural code, on the issuing of the annual
report and all of those other matters that are under extraordinary
resolution.
LISTNUM
1 \l 11173
THE CHAIRPERSON: Okay. And if changing of the governance
structure is really No. 1, what would be No. 2?
LISTNUM
1 \l 11174
MR. LAWFORD: No. 2 would be
removal of the contract liability limitation.
LISTNUM
1 \l 11175
THE CHAIRPERSON: Okay, thank
you.
LISTNUM
1 \l 11176
Commissioner Katz, you had some questions.
LISTNUM
1 \l 11177
COMMISSIONER KATZ: Thank
you.
LISTNUM
1 \l 11178
A question with regard to remedies.
You indicated I think ‑‑ it may not be in the script here ‑‑
that there might be some issues with cell phone and Internet that go back months
and months and a thousand dollars would not be enough.
LISTNUM
1 \l 11179
I thought I heard the members this morning say that the thousand dollar
damage would be over and above any billing disputes that would arise that would
result in repayment or retribution.
LISTNUM
1 \l 11180
Does that go some ways towards alleviating your concern about recovery of
monies paid for value not received?
LISTNUM
1 \l 11181
MR. LAWFORD: It does go some
way towards it. I'm still a little
bit at sea with the rather complicated provisions of the bylaws and procedural
code and I'd like the companies to walk you and us through it at some point to
see where that exception that we will pay back all past points where we billed
you wrong is found.
LISTNUM
1 \l 11182
But there are other situations, again, with ‑‑ say, for example,
this problem they have found in Australia where a company says, oh look, it's
unlimited access and it's a bundle and the consumer says, well, you know, they
said it's unlimited access, but certain services in that bundle, if you exceed a
set amount, which is not well explained, you're going to pay above the amount
that they consider to be a reasonable cap, you're going to pay some exorbitant
amount of money.
LISTNUM
1 \l 11183
In that case the company is saying, we're fully justified in billing you,
look, it was in the terms and conditions.
But what the Commissioner says in Australia is, no, you didn't bring
it ‑‑ make an effort to bring the conditions of the bundle offer to the
customer's attention at the time and, look, they got a $2,000 bill, that's not
fair, pay them back $2,000. And
that's what we're talking about, that kind of
situation.
LISTNUM
1 \l 11184
COMMISSIONER KATZ:
Okay. But it's still the
same issue of a billing dispute that if the Commissioner rules that, in fact,
there was an unlimited ‑‑ no ceiling on the payments, that whatever
additional charges would be reimbursed back to the customer, small business or
consumer.
LISTNUM
1 \l 11185
MR. LAWFORD: I think the
Commissioner or Ombudsman could take that view, but they could also take the
company's argument at face value but still believe that, again, there was a
false advertising aspect to it. So,
that if you looked at the strict letter of the contract, yes, you owe that but
in equity you don't because you weren't told.
LISTNUM
1 \l 11186
COMMISSIONER KATZ:
Okay. A question we asked
CIPPIC earlier as well. Your view
as well is that CCTS should be mandated for everybody.
LISTNUM
1 \l 11187
Is it black and white; is there a situation where there can be some
exemptions in your view and, if so, what would those be, if
any?
LISTNUM
1 \l 11188
MR. LAWFORD: The
Commissioner has already ‑‑ the Chair has already noted the differences
between us. I'm afraid that the
consumer groups that I'm here to represent want everyone in, no
exceptions.
LISTNUM
1 \l 11189
And the reason for that is, again, the equality. You could be a customer of a very, very
small ISP, why should you get any less redress.
LISTNUM
1 \l 11190
I mean, we can find these people.
They've found tens of thousands of providers in Australia and it's taken
a while, it's been running for 15 years, but they know who they are now and they
change, but they find them.
LISTNUM
1 \l 11191
COMMISSIONER KATZ: Last
question. I think we discussed as
well section 24, the famous section 24 of the Act and you heard the members this
morning talk about it as well.
LISTNUM
1 \l 11192
Have you got anything to add to I guess your statement that you made in
paragraph, I guess it's 35 of your submission on October 1st regarding
jurisdiction.
LISTNUM
1 \l 11193
MR. LAWFORD: We do think
that as a condition, under 24, you can make most of the Canadian carriers liable
to become part of this scheme. If
you want to backstop it with 32(g), I don't see anything in the wording there
that covers ‑‑ that doesn't cover that problem.
LISTNUM
1 \l 11194
When it comes to resellers, again, same thing as we used to do with
telemarketing where there has to be a contractual condition that resellers have
to join if they're going to be reselling the services of the CLEC or the other
carrier. That would be the way to
approach that.
LISTNUM
1 \l 11195
In terms of section 40, maybe at the very end of a long dissident process
within the CCTS or whatever we call it, the last sanction could be, look, we are
unplugging you guys, and here is our statutory authority. Section 40 we are going to refer to the
Commission. We are going to say, if
you do it again we have to disconnect you.
LISTNUM
1 \l 11196
COMMISSIONER KATZ: Those are my questions.
LISTNUM
1 \l 11197
THE CHAIRPERSON: Commissioner Morin.
LISTNUM
1 \l 11198
COMMISSIONER MORIN: Would it make sense for you that collective
complaints be permitted?
LISTNUM
1 \l 11199
MR. LAWFORD: Sorry, that the collective complaints
be?
LISTNUM
1 \l 11200
COMMISSIONER MORIN: Permitted; authorized.
LISTNUM
1 \l 11201
MR. LAWFORD: Yes. In a case,
for example, with a building with customers who had all been wrongly billed or
disconnected, there doesn't seem to be any problem from our point of view. It is almost more efficient to just say,
well, we don't have to open 20 files or 200 files. It is the same
issue.
LISTNUM
1 \l 11202
The Commissioner can perhaps give it a little bit more attention because
you are affecting 200 consumers, but let's put it this way. The companies are going to be part of
this process, so the company involved can say, in our opinion, there are
different issues between floor number 7 and floor number 2, and here is
why. If they can convince the
Commissioner or the ombudsman that there is a difference, then the ombudsman
would in that case, I think, be justified and I don't think they need to have
special jurisdiction in their by‑laws to split the
complaint.
LISTNUM
1 \l 11203
COMMISSIONER MORIN: The same question that I have asked before: Do you
have some examples that this process has been authorized by an
ombudsman?
LISTNUM
1 \l 11204
MR. LAWFORD: The examples of the collective?
LISTNUM
1 \l 11205
COMMISSIONER MORIN: Yes.
LISTNUM
1 \l 11206
MR. LAWFORD: I would have to undertake to see the Australian commission
does it that way. I would suspect
that they do take that type of complaint, but I am afraid I don't know off the
top of my head. But I am happy to
undertake that if you wish.
LISTNUM
1 \l 11207
THE CHAIRPERSON: Thank you very much. We much appreciate your comments. They are very
clear.
LISTNUM
1 \l 11208
MR. LAWFORD: Thank you.
LISTNUM
1 \l 11209
THE CHAIRPERSON: Madam Boulet, I think we have time for one more
participant before we break for the day.
LISTNUM
1 \l 11210
THE REGISTRAR: Thank you, Mr. Chairman.
LISTNUM
1 \l 11211
I would call on the next participant: The Canadian Cable Systems Alliance
Incorporated to come forward to the presentation table.
LISTNUM
1 \l 11212
Once you are ready to proceed, if you could please introduce yourselves
for the record, and you will have 20 minutes for your presentation. Please go ahead.
PRESENTATION /
PRÉSENTATION
LISTNUM
1 \l 11213
MR. EDWARDS: Mr. Chairman, Vice‑Chair, Commissioner, I am Chris Edwards,
Vice‑President, Regulatory for the Canadian Cable Systems
Alliance.
LISTNUM
1 \l 11214
I have with me Mr. Harris Boyd, President of Solaricom, and Ms Suzanne
Blackwell, President of Giganomics Consulting. Both are consultants to CCSA on
regulatory matters.
LISTNUM
1 \l 11215
We come with greetings from the planet ILEC, because I think I just heard
that we have become inhabitants, much to my amazement.
LISTNUM
1 \l 11216
I will get into the presentation.
LISTNUM
1 \l 11217
The Canadian Cable Systems Alliance represents over 80 independent cable
companies in all regions of Canada.
The largest of these, EastLink, has been offering telephone and highspeed
internet services in the Maritimes for many years.
LISTNUM
1 \l 11218
While other CCSA members also have been offering broadband services to
their customers for some time, relatively few have launched telephone
services. Although we expect other
members to follow suit in the coming months and years, this will remain a
nascent business for our members for some time to come.
LISTNUM
1 \l 11219
Our competitors, however, have been in the telecommunications business
for over 100 years. Most of it is
large, regional monopoly enterprises.
We find it ironic that now that competition has started to take hold, at
least for the ILECs residential customers in the major urban areas, a complaints
commission is deemed necessary.
Nevertheless, we respect the government's decision to proceed in this
manner, but would like to comment on the mandate, structure, membership and
cost.
LISTNUM
1 \l 11220
CCSA's submissions, in essence, are
these.
LISTNUM
1 \l 11221
Membership in the CCTS should be voluntary, at least for small
companies. Membership fees for
small companies should be minimal so as not to be a barrier to
participation. If membership is
mandatory, small companies should have a voice in CCTS governance and
telemarketing complaint resolution should not be a part of the CCTS
mandate.
LISTNUM
1 \l 11222
Sorry, I missed one point.
The processes should be kept as simple as possible.
LISTNUM
1 \l 11223
CCSA member companies provide broadband services to roughly 325,000
customers in aggregate, accounting for only 4 per cent of the 7.5 million
residential broadband subscribers.
LISTNUM
1 \l 11224
With respect to telephony services, CCSA member companies serve about
140,000 primarily residential customers.
That equates to only 1 per cent of the nearly 13 million residential
lines in Canada.
LISTNUM
1 \l 11225
It is worth nothing that the bulk of these highspeed and local telephone
customers are served by EastLink, and that EastLink has already joined as a
member of the Telecom Complaints Commission. The remaining CCSA members who qualify
as Canadian carriers serve only a very minimal percentage of the total Canadian
market.
LISTNUM
1 \l 11226
With respect to cable television, the industry established its own
complaints commission for cable television services. The Cable Television Standards
Foundation and Council was formed in 1988 and began operation in 1990. It handled complaints by cable company
customers who were not satisfied with the response they received from the
companies directly. It gave
customers an arm's length organization with which to deal.
LISTNUM
1 \l 11227
The industry developed its own customer service standards that were filed
with the CRTC. While participation
in the standards council was voluntary, almost all companies within the industry
joined. The council's board was
composed of companies both large and small, and the council had only three
stakeholder members: A cable industry representative, a consumer representative,
and a programming representative.
The board also included a chairman with a legal background to settle
disputes. Fees were structured so
that small companies could participate for a flat annual fee of as little as a
few hundred dollars.
LISTNUM
1 \l 11228
The CTSC functioned very well, particularly during a period of monopoly
services. With the arrival of
competition, many members felt the council was no longer needed. That was because competitive market
forces could be relied upon to condition the cable companies either to pay close
attention to customers and their issues or risk losing those customers to
competition.
LISTNUM
1 \l 11229
The standards council was simple and effective. The experience gained through the CTSC
should guide us in the establishment of any new complaints
organization.
LISTNUM
1 \l 11230
We need not reinvent the wheel in designing the Telecom Complaints
Commission. We should not ignore
what has been successful in terms of both effectiveness and efficiency in
similar organizations in the past.
LISTNUM
1 \l 11231
As to mandate, one of the lessons learned from the CTSC is that the
mandate of a complaints commission needs to be very clear. In the case of the CTSC, the council
dealt specifically with service standards for cable operations and community
channel activities. A new
commission of complaints for telecommunications should also deal specifically
with service issues rather than pricing.
LISTNUM
1 \l 11232
These are the issues all telecommunications providers will have in
common. These are the issues that
customers need to have resolved if they are to continue to receive high quality
service.
LISTNUM
1 \l 11233
There should be no consideration given to having the complaints
commission deal with telemarketing calls.
Quite simply, this issue has nothing to do with the quality of telecom
services, requires an entirely different type of expertise to handle, and above
all, should be funded by telemarketing organizations, not the
carriers.
LISTNUM
1 \l 11234
CCSA notes that there is almost unanimous agreement among the parties to
this proceeding that the complaints commission should not deal with these
complaints.
LISTNUM
1 \l 11235
Membership in a new complaints commission should be voluntary. The CTSC was also voluntary and worked
very well on that basis. There is
no reason in principle to believe that a telecommunications complaints
commission should be any different.
LISTNUM
1 \l 11236
Most of the large telecommunications companies, which among them serve by
far most of the customers, have already indicated their willingness to join the
CCTS. They have taken a proactive
role in the development of the current proposal. Those companies do not need to be forced
to participate.
LISTNUM
1 \l 11237
However, if the Commission does consider it necessary to require
participation for such larger companies, it should at least establish a
threshold below which mandatory participation would not
apply.
LISTNUM
1 \l 11238
There are good practical reasons for such a distinction. Small companies have very few
customers. Moreover, the small,
locally based customers are very close to their customers. The management of these companies plays
a direct, hands‑on role in handling customer issues that do arise. Their customers are highly unlikely to
find that getting a third party involved in their local issues will result in
these being resolved more quickly or more satisfactorily.
LISTNUM
1 \l 11239
For those reasons, CCSA submits that small companies should be able to
choose whether to participate in a complaints commission. Some such companies may in fact choose
to participate so as to be able to claim voluntary participation in a credible
industry customer service body as a selling feature to
customers.
LISTNUM
1 \l 11240
CCSA notes that it is not alone in this view and that similar concerns
respecting the impact of mandatory participation on small companies were raised
in the comments filed by the Canadian Independent Telephone Company Joint Task
Force. Moreover, the founding
members of the Commission do not insist on mandatory membership by all
carriers.
LISTNUM
1 \l 11241
If membership is not to be voluntary, then CCSA recommends that it be
mandatory only for companies that serve more than 50,000 telecommunication
service customers. Customers who
subscribe to both internet and voice services should be counted only once. While many companies with customer bases
lower than this threshold, particularly the largest of those, may well choose to
participate, those companies should be able to make that decision on their own
as a matter of maximizing their customer service
advantage.
LISTNUM
1 \l 11242
As to governance, the current proposal for the new Commission will ensure
that the large cable companies and the ILECs are well represented in the
Commission's governance and decision‑making processes. There is no guarantee, however, that
there will be any representation from small cable companies. Again, CCSA's concerns in this matter
are shared by the members of the CITC Joint Task Force.
LISTNUM
1 \l 11243
We believe that if small companies are required to join and participate
in the Commission, then they should have a voice in its governance. Otherwise, despite the Commission's
initial governance establishment, its structure, fees and processes will all be
subject to change without any opportunity for input by the small cable companies
affected.
LISTNUM
1 \l 11244
If membership is mandatory, then changes to the Commission's fee
structure and its processes for complaint resolution could have substantial and,
more to the point, disproportionate effects on the businesses of CCSA members
and their ability to compete in the telecommunications
space.
LISTNUM
1 \l 11245
In particular, we are already concerned, based on our review of the
multi‑step complaint processes included as part of the present proposal, that
the large companies will be prone to develop overly complex and extremely costly
processes. Such procedures
represent the thinking of very large, entrenched, centralized and bureaucratized
organizations.
LISTNUM
1 \l 11246
Neither our members nor their customers will be well served by such
procedures. Small companies tend to
develop simple, timely complaint resolution mechanisms geared to their own
small, locally‑based set of customers.
LISTNUM
1 \l 11247
If membership in the Commission is to be mandatory, then there should be
sufficient flexibility in its processes to recognize such fundamental
differences in complain resolution approaches; otherwise, process by itself can
become an unnecessarily costly and time‑consuming burden for small companies who
already know their customers very well.
LISTNUM
1 \l 11248
To ensure that such concerns are raised and dealt with on a continuing
basis, if participation is mandatory then the Commission's by‑laws should
specifically provide for small cable representation, perhaps through CCSA or one
of its members, on the Commission's board of directors.
LISTNUM
1 \l 11249
As to fees, the draft membership agreement included with the proposal
submitted by the founding members of the Commission does not indicate a fee
schedule to be followed after the initial transition period. However, it does state that non‑founding
members will be required to pay a minimum of $10,000 for the year prior to
joining. Clearly, we have heard
that changed today, and that is welcomed news.
LISTNUM
1 \l 11250
For a small cable company with a few hundred or even a few thousand
customers, only some of which will be telecommunications customers, such sums
represents substantial financial hardship.
Payment of such a fee by CCSA members alone would amount to in excess of
half a million dollars. That amount
is entirely disproportionate to those companies relative size in the
industry.
LISTNUM
1 \l 11251
As we mentioned earlier, the former Cable Television Standards Council
operated with a small system membership fees of less than 5 per cent of that
proposed $10,000 recovery.
LISTNUM
1 \l 11252
We question why the new organization should be so costly and, more to the
point, why small cable companies should be called to underwrite such a large
part of its costs. A new fee
structure is required not only to encourage small cable companies to join, but
indeed to make membership feasible.
LISTNUM
1 \l 11253
CCSA recommends that for companies with less than 50,000 telecom
customers, the annual fee should not exceed $1,000. For the very smallest companies, those
with fewer than 10,000 customers, there should be a flat annual fee of no more
than $250. Companies with less than
50,000 customers should not pay any initiation fee.
LISTNUM
1 \l 11254
A structure of fees in that order would not be a significant barrier to
participation in the Commission and could make membership an attractive and
valuable proposition, even to smaller
competitors.
LISTNUM
1 \l 11255
At bottom, the government has taken a strong initiative to accelerate
competition in the delivery of telecommunication services to Canadians in all
regions of the country. In exchange
for new regulatory freedoms for the ILECs, the government has promoted
establishment of a new mechanism to protect those consumers. It would be most unfortunate if that
mechanism is allowed to become in and of itself a new barrier to competitive
entry in Canadian telecom markets.
LISTNUM
1 \l 11256
If membership in the Commission is mandatory, if the fees are
unreasonable in relation to the capabilities of the smaller entrants, and if
uniform complaint resolution processes sacrifice small company efficiencies to
bureaucratic consistency, then the new Commission itself stands to become an
anti‑competitive force.
LISTNUM
1 \l 11257
CCSA and its members support the objectives being served by the creation
of the new CCTS. We ask only that
the CCTS be constituted in a manner that will both serve those objectives and do
no harm to the ILEC small cable competitors.
LISTNUM
1 \l 11258
To conclude, we repeat our basic submissions in this matter. Membership in the organization should be
voluntary, at least for small companies; fees should be minimal so as not to be
a barrier to participation; if membership is mandatory, small companies should
have a voice in the governance of the organization; the processes absolutely
should be kept as simple as possible; and telemarketing complaint resolutions
should not be part of this Commission's mandate.
LISTNUM
1 \l 11259
We would be pleased to answer any questions you have. Thank you.
LISTNUM
1 \l 11260
THE CHAIRPERSON: Thank you very much.
LISTNUM
1 \l 11261
Where does the number 50,000 come from?
LISTNUM
1 \l 11262
MR. EDWARDS: Quite frankly, it is a threshold that would be helpful to
our membership. You could do it on
revenues or you could do it on telecommunications customers. We picked customers as a cleaner
threshold.
LISTNUM
1 \l 11263
THE CHAIRPERSON: Is it used anywhere else as a cutoff
point?
LISTNUM
1 \l 11264
MR. BOYD: No, it isn't.
Essentially where we developed it, if you take EastLink out of the CCSA
membership, none of the other companies would have more than 50,000 telecom
customers.
LISTNUM
1 \l 11265
THE CHAIRPERSON: You say if mandatory, you should have a voice in the
governance. What exactly do you
have in mind?
LISTNUM
1 \l 11266
Let's say, for argument's sake, we say e accept the threshold of 50,000
and the fee structure, et cetera, but it has to be mandatory, everybody has to
be involved. Now you say, fine, we
can buy that but we want to be part of the governance. What do you have in
mind?
LISTNUM
1 \l 11267
MR. EDWARDS: The point there would be that small cable as such should be
represented by a seat on the board.
LISTNUM
1 \l 11268
COMMISSIONER KATZ: You asked my question, Mr.
Chairman.
LISTNUM
1 \l 11269
COMMISSIONER MORIN: I understand your demand about having a voice in the
CCTS, but we are talking here about 300,000 customers. So, what do you think about your
participation on a rotating basis?
LISTNUM
1 \l 11270
MR. BOYD: Rotating amongst our membership or rotating with other
organizations?
LISTNUM
1 \l 11271
COMMISSIONER MORIN: No, rotating on the board.
LISTNUM
1 \l 11272
MR. BOYD: I guess it might depend how rapid that rotation was. If you didn't have a seat for five years
a lot could change in that length of time.
LISTNUM
1 \l 11273
MR. EDWARDS: If I may, really the key concern that we have is that there
are procedural steps involved in participation in the Commission that create
costs for participants. If we have
no voice whatsoever in the governance of the organization, those steps can be
changed, the costs increased without any input by people who are in fact very
greatly affected by increased costs.
Small companies that may serve perhaps 100 basic cable subscribers, 30 or
40 telephony subscribers may be bound by the cost of a process that they cannot
control or in which they have no input whatsoever.
LISTNUM
1 \l 11274
MR. BOYD: If I may, Commissioner Morin has asked the same question of a
number of people about collective complaints. When we had the Cable Television
Standards Council, it did in fact accept collective complaints in the form of
petitions or letters signed by multiple customers.
LISTNUM
1 \l 11275
THE CHAIRPERSON: In terms of governance, could the same person represent
you and the small telephone companies, the joint task force that you are
referring to?
LISTNUM
1 \l 11276
MR. EDWARDS: I would answer that by saying I think the concerns are
virtually identical. So I think the
answer is yes.
LISTNUM
1 \l 11277
THE CHAIRPERSON: Thank you very much.
LISTNUM
1 \l 11278
It has been a long day.
Thank you all for your patience.
LISTNUM
1 \l 11279
Madam Boulet, you have some announcements for the
morning.
LISTNUM
1 \l 11280
THE REGISTRAR: Yes, thank you, Mr.
Chairman.
LISTNUM
1 \l 11281
We will now adjourn for the evening, and we will resume tomorrow morning
at 8:30 with the video conference presentation of ARCH Disability Law Centre,
followed by Primus Telecommunications.
LISTNUM
1 \l 11282
I would also like to inform all parties that they will then have an
opportunity to do a five‑minute closing statement in reverse order of today's
presentations if they wish to do so.
If you do not wish to participate in that phase, if you could let me
know, I would appreciate it.
LISTNUM
1 \l 11283
Therefore, just to remind everyone, we will be starting at 8:30 tomorrow
morning. Thank you very much. Good night.
‑‑‑ Whereupon the hearing adjourned at 4:33
p.m., to
resume on Thursday, November
15, 2007 at 8:30 a.m.
REPORTERS
______________________
______________________
Johanne Morin
Beverley Dillabough
______________________
______________________
Monique Mahoney
Barbara Neuberger