An Ontario politician is launching an effort to curb consumer shock when they open their cellphone bills - and he's urging Ottawa and the other provinces to join the fight.
Liberal David Orazietti introduced draft legislation Tuesday that he says would protect consumers from the "unfair practices" of wireless service providers, such as high fees and confusing contracts.
More than 22 million Canadians use cellphones or smartphones, including 77 per cent of Ontario residents, he pointed out. And according to a recent survey, Canadians are paying the highest rates.
"The Better Business Bureau indicated that this year, this was their No. 1 complaint," Mr. Orazietti said.
"There are ongoing challenges with respect to transparency and regulations in this industry, and we want to see changes to that and greater protection for consumers."
If passed, Mr. Orazietti's private member's bill would reduce cancellation fees, make advertising and the costs of using a cellphone more transparent and clarify contracts so that Ontario consumers know what they're paying for.
It would force companies to warn users when they're close to their limit that they may be zapped with extra charges, and "unlock" any phone once it's paid for - or no longer bound by a contract - so that consumers can switch service providers without buying a new device.
Quebec implemented legislation in July that limits cancellation fees and stops companies from automatically renewing contracts. Steps are being taken in both the United States and Europe to rein in extra charges, Mr. Orazietti said.
Private member's bills rarely become law, but Ontario's governing Liberals have previously backed two of Mr. Orazietti's bills - including a ban on smoking in cars with kids.
Consumer Services Minister John Gerretsen acknowledged that cellphone services are among the top 10 complaints to his ministry, but wouldn't say if the government would support the bill.
"We'll certainly take a look at this bill, work with them and see if we can't improve the protection of consumers," he said.
Consumer advocates want the other provinces and the federal government to get involved in levelling the playing field between cellphone users and wireless companies, saying it will boost competition.
The telecommunications industry is regulated by the federal government, but contracts fall under provincial jurisdiction, they said.
"Canadian consumers have for a long time been victims of the nefarious marketing practices of the wireless telephone companies," said Mel Fruitman of the Consumers' Association of Canada.
"Overpaying in many cases, being locked into charges that they feel are improper, that they can't get out of even when the marketplace has moved on. When there are other options available to them, they are stuck."
Among 11 countries, Canadians are paying the highest minimum rates for postpaid cellphone service - $67.50 per month, according to a recent survey by the New America Foundation. That compares to $59.99 per month in the U.S. and $32.40 in the United Kingdom.
The wireless market has never been regulated in Canada, unlike landline phones where the cost for basic service is set, said Michael Janigan, executive director of the Public Interest Advocacy Centre.
The lack of regulation in Canadian wireless services has benefited consumers in some ways by fostering innovative competition, said Ken Whitehurst, executive director of the Consumers Council of Canada.
But there's an "enormous number" of complaints from people who don't understand their contracts. Those gripes could hurt the industry if consumers take them to court, he said.
Most wireless carriers already adhere to a code of conduct that includes many of rules outlined in Mr. Orazietti's bill, said Marc Choma, spokesman for the Canadian Wireless Telecommunications Association.
Unhappy consumers can also lodge their complaints with an independent party, the Commissioner for Complaints for Telecommunication Services.
"If the customer isn't happy with the offering that they have at one company, there's certainly another company out there that's willing to take their business," Mr. Choma said.
"So there's lots of choice out there. We just don't want to see government regulation, as opposed to competition, that's going to be driving the market."