CRTC launches code to help consumers better understand TV bills

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The federal broadcast regulator is introducing new rules that compel television service providers to make their bills easier to understand as subscribers are offered more choice in choosing channels.

A new Television Service Provider Code of Conduct was released on Thursday, designed to force cable and satellite companies to give their customers clear information about the channels they're paying for, when promotional offers will expire, and better notice of service calls and price changes.

But the code won't be enforced until at least September of 2017, in order to give companies time to update their computers systems. For a small number of providers, the new rules won't kick in until they renew their licences in September of 2018.

The Canadian Radio-television and Telecommunications Commission (CRTC) promised the code after its Let's Talk TV hearing, held in 2014, when "many" frustrated Canadians said "cable and satellite companies do not always provide adequate information about service packages and pricing." The CRTC published a draft version in March of 2015 to get feedback.

Earlier that year, the regulator commissioned a survey conducted by Harris/Decima which found that only 60 per cent of consumers were satisfied with the clarity of their TV contracts, while just 54 per cent were content with the flexibility their providers allowed them to cancel or modify their service. Between 2011 and 2014, the CRTC received 4,369 complaints about TV distributors related to billing, channel placement, disconnection and contract-related issues.

During Let's Talk TV, the most common complaints were: Complicated service agreements and promotional offerings; confusion and disputes about charges, changes to service or promotions; and frustration with the wait times for service calls.

These are the six main things the code will require:

• Give consumers information they need “in a format that is easy to understand,” including a list of the channels and packages they subscribe to.
• Make it clear how long a promotional offer lasts, what the regular price will be when it ends, and set out any obligations that come with it, such as contract durations – for example, having to agree to a minimum six-month term.
• For service calls, repairs and installations, give customers a an estimated time frame and tell them of any potential charges, while also providing information about how they can reschedule or make a complaint. The commission had considered mandating that window of time be no more than four hours, but decided it wasn’t realistic.
• Make sure prices in written agreements are clear, and show whether they include taxes or other fees.
• Give consumers 30 days’ notice of any change in the price of channels, bundles or rented equipment.
• TV distributors will have to offer customers with disabilities a 30-day trial period to decide whether the service is what they need.

Although the code won't be mandatory for more than 18 months, the CRTC is urging distributors to move ahead as quickly as possible.

"Providers are strongly encouraged to take the necessary actions now, so that Canadians have the information to choose the provider that best meets their needs," said CRTC chairman Jean-Pierre Blais, in a statement. "Doing so may also prove to be a competitive advantage in the marketplace."

The code is partly intended to help ease the process for viewers who want to take advantage of new packaging options that will soon be on offer.

By March, TV distributors must have a smaller, "skinny" basic package of channels available along with smaller bundles. By December, all channels must be available to buy individually on top of the small basic package – a long-awaited choice best known as "pick-and-pay."