NEWS RELEASE DAVID ORAZIETTI ************************** Orazietti's cell phone bill passes second reading in Ontario Legislature Legislation proposes most comprehensive protection for consumers in Canada, reduces cell phone costs QUEEN'S PARK

NEWS RELEASE



DAVID ORAZIETTI



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



Legislation proposes most comprehensive protection for consumers in Canada, reduces cell phone costs



QUEEN'S PARK - Today in the Provincial Legislature, Sault Ste. Marie MPP David Orazietti’s Bill 5, the “Wireless Phone, Smart Phone and Data Service Transparency Act, 2011,” passed Second Reading with support from all political parties.



“The provincial government has a responsibility to ensure that the millions of cell phone contracts signed by Ontarians are fair and transparent and I am very pleased that Bill 5 has passed Second Reading in the Provincial Legislature with all-party support,” said Orazietti. “This is a pocket book issue that consumers want addressed and Bill 5 proposes measures aimed at reducing costs, capping cancellation fees, preventing automatic renewal and making contracts more transparent."



Bill 5 would put an end to unfair practices by wireless service providers by requiring clear disclosure of all mandatory and optional services, including the disclosure of “hidden fees” and contract cancellation penalties.



The legislation proposes the most far reaching protection in Canada for consumers of wireless services and would place limits on excessive contract termination fees, among other provisions.



Originally introduced in 2010 as Bill 133, the legislation passed first reading on November 16, 2010 and second reading on April 14, 2011 with all-party support.



The legislation expired in June 2011 at the end of the legislative session.



The legislation was re-introduced at Queen’s Park on November 23, 2011 and today passed second reading with all-party support.



Bill 5 has been referred to the Standing Committee on General Government.



“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."



“The Better Business Bureau (BBB) has received more complaints about cellular phone services and supplies in Canada during 2010 than any other issue,” said Ric Borski, president and CEO of the BBB of Mid-Western and Central Ontario. “The BBB supports in principle any provisions that enhance marketplace transparency and promote better business practices.”



Bill 5 proposes that wireless service providers be required to:

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

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

Reduce the cancellation fee charged to consumers through a prescribed formula.

Improve transparency regarding automatic renewal and unilateral contract changes.

Notify the consumer when they may incur additional charges as a result of exceeding usage limits or for attempting to use a service outside geographical limits set out in the agreement.

Ensure that a consumer is not liable to pay for services not received by the consumer while a device provided by the supplier is being repaired by the supplier.

Provide billing statements in paper form at no extra cost at the request of the consumer.

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, at no additional cost, 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 eleven countries.



Over 22.5 million Canadians subscribe to wireless services.



81 percent of households in Ontario 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, 2010,” 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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