Question Period Note: ACTION ON JUNK FEES

What is Innovation, Science and Economic Development Canada doing to reduce hidden or unexpected (i.e., junk) fees for Canadians?

• Higher prices are putting pressure on Canadians, and action is needed to make life more affordable.
• To lower the cost of living, the Government of Canada is taking action to cut junk fees everywhere it can.
• Budget 2024 proposes that:
o the government will work with provinces and territories to identify and target junk fees charged in Canada, and
o the Office of Consumer Affairs will also help reveal deceptive junk fee practices by advancing research and advocacy projects.

• The government has taken steps to crack down on junk fees and will keep working hard to make like more affordable.

Budget 2024

Budget 2024 announced that the Government of Canada will strengthen transparency for optional services fees charged by airlines, such as for seat selection, checked and carry-on baggage, meals on board, and in-flight entertainment. The Government will do this by working with the Canadian Transportation Agency and airlines to ensure these fees are clearly laid out.

Budget 2024 also announced that the Government is calling on all orders of government to do their part to cut junk fees and that it will work with provinces and territories to identify and target junk fees charged in Canada, including through the federal Office of Consumer Affairs, which will help reveal deceptive junk fee practices and advance research and advocacy projects.

Budget 2024 also noted the Government of Canada’s significant progress on limiting junk fees through its previously announced iniatitives, including amending the Competition Act to strengthen protections against hidden prices, directing the CRTC to improve competition and support consumers, introducing the Financial Consumer Protection Framework Regulations to help Canadians avoid fees, and streghtening the Air Passenger Protection Regulations.

Fall Economic Statement 2023 and International Roaming

The Fall Economic Statement (FES) announced further actions the Government of Canada is taking to crack down on junk fees, including strengthening consumer protections in the air travel, banking and telecommunications sectors. The FES stated that the Canadian Radio-television and Telecommunications Commission (CRTC) “will conduct a prompt investigation of international mobile roaming charges, and will provide an update and concrete next steps in 2024.” It also announced that the government will support independent research on this issue and will announce additional actions to crack down on junk fees in the months ahead. This research will build upon studies on junk fees previously conducted by ISED’s Office of Consumer Affairs.

In March 2023, the Minister of Innovation, Science and Industry wrote to the CRTC and noted Canadians’ concerns regarding ancillary fees for telecommunications services, including those incurred for international roaming. The CRTC Chair replied that the CRTC would launch a study of international roaming fees and subsequently did so in spring 2023.

Policy Direction to the Canadian Radio-television and Telecommunications Commission (CRTC)

The government issued a new binding Policy Direction to the CRTC in February 2023. The CRTC is required to translate the direction into its detailed regulation of the telecom industry.

Notably, the new policy direction aims to improve consumer rights by requiring the CRTC to implement new measures to address unacceptable sales practices, improve transparency and clarity of service pricing, strengthen consumer codes, making it easier for consumers to change or cancel services, and enhancing the Commission for Complaints for Telecom-television Services (CCTS).

Competition Act

Through Bill C-59, the government is further cracking down on drip pricing (when additional charges or fees affect consumers’ abilities to make informed decisions about prices) by strengthening prohibitions against the digital marketing of unattainable prices without the inclusion of mandatory fees. The proposed amendments will also enable Canadians to bring deceptive marketing claims directly to the Competition Tribunal.

• In addition to Budget 2024 commitments, the Government is using all available tools to reduce the unnecessary fees Canadians pay, including through reforming competition law and directing federal agencies, such as the Canadian Radio-television and Telecommunications Commission (CRTC), to strengthen consumer protections.