From 10,000 Feet

A few weeks ago in this column, I wrote about businesses who regularly take advantage of Canadians and who seem to get away with it because of their size. One of those companies I named was Bell Canada. Recently, the multi-media conglomerate was fined $10,000,000 (the maximum allowed by law) for deceptive advertising practises. Bell advertised a bundle of services for $69.90 but in 100 lines of fine print disclaimers and mandatory fees, they raised the minimum price to $80.27. This practice began in 2007 and has continued to the present. In spite of the Competition Bureau’s decision, Bell continues to assert that this practice is ethical.

Since Bell Media owns roughly half of the newspapers, local television and radio stations in this country, plus a number of specialty channels, some of which are news oriented, I was certain that most of the media would not be covering this story. But it is important news for those of us who have been “baited with a low price” and then “switched to a higher price”. Though $10,000,000 is a significant fine, in the “big picture”, it is not a deterrent. Over the course of 7 years, $10,000,000 is nothing more than a “cost of doing business” for a company that has made millions from this deceptive practice. If it takes 7 years to prosecute a company, what is the deterrent? Furthermore, it is only one issue among a myriad of complaints Canadians have had with Bell’s business practices that have yet to be scrutinized. Although the decision is welcome news, it does little for the millions of customers who were taken advantage of by Bell.

In the US, fleecing the consumer has reached new heights with a practice called “cramming”. Wireless phone companies such as Verizon and AT&T have been fined for unauthorized billing “discrepancies”. The practice of billing for services often never received is blatant “fraud”, yet little is being done to stop the practice. Verizon has issued statements denouncing the billing practice and the FCC has fined them $50,000,000 but cramming is still alive and well in the US and also in Canada.

In Canada, the scam is configured differently but the result is the same. Companies offer you a “special” deal but then bill you the regular price for the service. A simple mistake they say, but its frequency defies a reasonable person’s ability to believe in mistakes. Other forms of cramming are billing for items that were included in your contracted service and for services never ordered. One wireless provider has already been slammed for their high number of “billing mistakes”.

If you think the problems you are having with your provider are unique to you, then you may be encouraged and angered to learn that you are not alone. Your situation may be just another example of being “crammed”.

We live in a world of information overload where “perception becomes reality” and where those perceptions can be manipulated to create an illusion of being ethical. Some corporations believe they can have the rewards of being ethical and unethical at the same time, but invariably, people perceive the illusion is false.

Corporations seem faceless but they are run by people who ultimately are responsible for the actions of the company. We fail to do justice when we prosecute the company instead of the individual. These people commit crimes but never suffer any consequences – they, in fact, benefit from their crime through bonuses and promotions and their reputation is never soiled. No wonder the problem is spreading.

Crimes are not committed by “legal entities” but by people who have narcissistic perceptions of life. Distorted values lead them into the deception that “more is better”, that “survival is of the fittest”, and that “winning is the only thing”. People with these values destroy community, cooperation, and common purpose. They destroy what makes a company and country great. They believe that what they have, is more important than what they are, and that happiness comes from unbridled consumption. They are sociopaths in suits for whom materialism has become their master and they have lost a sense of community or goodwill toward others. Our country and our world are in a “values crisis”. Without intervention, we can only expect things to get worse. This problem and the news story may seem small and even insignificant, but they point to a need for government at all levels to address the growing need for the defence of consumers and prosecution of the individuals who defraud them.

A few months ago, I rented a car in Costa Rica. To my surprise, the car rental company offered to provide me with a mobile phone for 30 days with unlimited calling anywhere in the country for just $10. I was shocked at how economical it was to provide the service. When I enquired about pricing, I discovered that costs were low and that prices were influenced more by what people could pay rather than what it cost to provide the service. I wondered why similar service in Canada was 8 times the cost?

Last fall, I contacted Bell Canada to turn off my phone for the 4 months I was planning on being away. They informed me there was a charge to NOT provide the service. The fee for cutting my phone off for 3 months was $40 or $50 for 6 months. I could disconnect completely but the fee for reconnecting was $110. Because of the way Bell structured its pricing, they forced me to pay $40 for no service plus $20 for service (the 4th month) I could not use, for a total of $60.00. My regular bill for that period would have been just $80. My point, as you may well see, is how can Bell realistically charge me $60 to not provide an $80 service? I paid it reluctantly because there was very little I could do about it and there was no other better choice. I was reminded of the 70s when a Bell representative threatened to cut off my service if I didn’t pay $5.00 a month for connecting an answering machine to “their” line. Then there was the time when I had completed my mobile phone contract only to be charged a $50 fee for transferring my account to Pay-As-You-Go. Bring up the topic of mobile phone carriers at any party and everyone has a story to tell.

I don’t want to give you the impression that I think all companies are bad, they are not. This week I had two amazing experiences with (big box) retailers who demonstrated excellent service and customer care which exceeded my expectations. But alas, not all companies operate fairly. There are plenty of companies that adopt policies that take advantage of the customer, especially if there is limited competition.

One of the great anchors we have as Canadians is our Charter of Rights. It protects us against injustice on a variety of human rights’ issues. We do, however, have limited rights and remedies when dealing with companies. Banks, mobile phone companies, cable, and satellite companies all have an internal complaint resolution system which you MUST go through before a government agency will even look at your complaint. It seems like these companies are being protected by the government and it is a violation of a person’s rights to be forced to resolve a complaint the way the company wants to resolve it. No one can slander or demean you for your age, orientation, cultural background, or religion; however, it seems to be quite Ok to cheat you as long as it can be done via “company policy”. Then if you have enough fortitude to fight back, you have to do it on their terms. No wonder nothing changes.

Canadians need a Consumer Bill of Rights which protects them from the subtle and overt economic bullying, intimidation, and coercion that seem to occur far too often. Read any company’s consumer (legal) agreement and discover how few rights you actually have. There are pages of conditions that protect the company and NOTHING which represents the rights of the consumer. The consumer is left with no rights or provisions for recourse because the company can do anything at any time. The agreements are so one-sided they are ridiculous and I haven`t even addressed the issues related to online transactions and the way some websites require you to pay before you get the conditions of sale. If the consumer ever needed representation and defending, it is now!  The federal government should act to establish basic rights that Canadians can expect from companies that do business in Canada.

We are a peaceful people not given to confrontation, but just because we don’t complain or often report unfair practices, doesn’t mean it isn’t happening. If we need a Charter of Rights in everyday living – and we do, then without a doubt, a Consumer Charter of Rights is needed by Canadians to protect them from unfair practices in the marketplace.