Orazietti's cell phone legislation passes second reading

NEWS RELEASE

DAVID ORAZIETTI, MPP

**************************** Orazietti's cell phone bill passes second reading in Ontario Legislature

Legislation proposes most comprehensive protection for consumers in Canada

QUEEN'S PARK - Today, in the Provincial Legislature, Sault Ste. Marie MPP David Orazietti’s Bill 133, the “Wireless Phone, Smart Phone and Data Service Transparency Act” passed second reading with support from all political parties.

Orazietti’s comprehensive new legislation, which proposes greater protection and transparency for consumers of wireless phone and data services, received all party support in the Legislature and has been referred to the Standing Committee on General Government.

“The provincial government has a responsibility to ensure that the cell phone contracts millions of Ontarians are signing are fair and transparent and I am very pleased that Bill 133 passed Second Reading in the Provincial Legislature with all party support,” said Orazietti. “This is a pocket book issue consumers want addressed and Bill 133 proposes measures aimed at reducing costs, capping cancellation fees, preventing automatic renewal and making contracts more transparent."

David Orazietti’s Bill 133 is the most comprehensive consumer protection legislation on cellular phone contracts in Canada.

The bill requires clear disclosure of all optional and mandatory services, including the disclosure of “hidden fees” and contract cancellation penalties.

The legislation would also limit contract termination fees, among other provisions.

The bill was first introduced in the Legislature on November 16, 2010.

“This bill will help remove barriers to real competition for ordinary consumers of wireless services,” said Michael Janigan, executive director and general counsel of the Public Interest Advocacy Centre. “It will help level the playing field for customers who currently feel trapped by onerous one-sided conditions.”

"Contracts for cellular voice and data services and equipment rate as top-10 sources of consumer complaints in Ontario," said Consumers Council of Canada President Don Mercer. "Many consumers feel their rights are unfairly limited and find it hard to understand their responsibilities under these agreements. Quebec has exercised its authority for contracts in this area. Now this bill in Ontario proposes action as well. Provinces across Canada should take responsibility and prompt action, and ultimately work toward a nationally harmonized approach that recognizes today's consumers are highly mobile. The Consumers Council of Canada encourages members of the Ontario Legislature to seriously engage this bill as a practical measure."

"For a long time consumers have been victims of the nefarious marketing practices of wireless telephone companies,” said Mel Fruitman, vice-president of the Consumers’ Association of Canada. “This protection for consumers is necessary and long overdue. We are pleased that the bill is moving forward and hope it receives speedy passage."

Bill 133 proposes that wireless service providers be required to:

- Clearly disclose the cost of all optional and mandatory services included in an agreement.

- Provide service agreements in plain language, making them more understandable to consumers.

- Reduce the cancellation fee charged to consumers.

- Improve transparency regarding automatic renewal.

- Notify the consumer when they may incur additional charges as a result of exceeding usage limits.

- Eliminate activation dates and expiry dates on pre-paid cards for wireless service.

- Make costs more transparent when advertising the price of wireless services.

- Unlock any device that has been paid for in full or is no longer bound by a service agreement.

Quick facts

- A 2010 report by the New American Foundation comparing wireless plans from around the world found Canadian consumers pay the highest minimum monthly charge for cell phone services out of the 11 countries.

- Over 22.5  million Canadians subscribe to wireless services.

- 77 percent of Ontarians subscribe to cell phone services.

- The Commissioner for Complaints for Telecommunications Services (CCTS) reports that complaints about wireless carriers comprised 52 percent of the complaints it received in the 2009-2010 monitoring period.

- 75 percent of the complaints about post-paid wireless services received by the CCTS for 2009 fell within the following categories: billing errors, termination disputes, customer service grievances and terms and conditions changes.

- Cellular phone service is the business category for which Better Business Bureaus in Canada have processed the most complaints in 2010.

- Complaints about cell phones and long distance charges consistently appear on the Ministry of Consumer Service’s annual list of “Top 10 Consumer Complaints.”

- In 2007 David Orazietti, MPP introduced Bill 11, “Protecting Children and Youth from Second-Hand Smoke in Automobiles Act, 2007.” The Bill was adopted by the Ministry of Health Promotion and Sport and amended the Smoke Free Ontario Act in 2009.

- In 2008, Orazietti introduced Bill 59, the “Apology Act, 2008,” which enables individuals and organizations, such as hospitals and other public institutions, to apologize for an accident or wrongdoing, without it being used as evidence of liability in a civil legal proceeding under provincial law. The Bill was adopted by the Ministry of the Attorney General and the Ministry of Health and Long Term Care as the Apology Act in 2009.

- In 2010, Orazietti introduced Bill 56, the “Breast Cancer Screening Act ,” which proposed increased access to breast cancer screening. Bill 56 passed Second Reading and was referred to the Standing Committee on Social Policy. In the 2011 Ontario budget the province announced the largest investment and expansion to the Ontario Breast Screening Program (OBSP) in more than 20 years and included reducing the age of entry to the OBSP.

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