CCTS Compliance Monitoring Report 2018

Executive Summary

CCTS launched its Compliance Monitoring and Enforcement Program in 2018.  In the inaugural year of the program we found:

  • 49 service provider brands failed to certify that they were adhering to our Public Awareness Plan and 65 service providers didn’t provide the financial information required by the CCTS;
  • More than 1,000 noncompliance issues observed in 2018 and more than half (56%) were cases where the PSP didn’t provide us with the required information.The second highest noncompliance issue was about service providers not refraining from collections activity against a customer (42%).
  • There were a few instances of major noncompliance in not adhering to CCTS participating requirements:
    • AllCore’s participation was terminated in August 2018 for not implementing resolutions it needed to provide to 2 customers;
    • BV Communications refused to implement a Decision and provide compensation to a customer. Right before referring the matter to the Board of Directors to consider its termination, BV Communications compensated the customer;
  • And CCTS has identified a number of PSPs who are not fully compliant with the Public Awareness Plan and is working with the service providers to bring them into compliance.

Outline

  1. About the CCTS Compliance Monitoring and Enforcement Program
    1. Background: discusses how and why we launched CMEP
    2. Purpose of report: summarizes the past year’s compliance monitoring and enforcement activities and results
  1. Promoting Public Awareness about CCTS
    1. Describe requirements of PA Plan
      1. Annual Compliance Certification process. Explain what we did.
        1. Dataset 1: “Name and shame” PSPs that didn’t provide ACC form
      2. Responding to non-compliance with PA Plan: describe activities we did
        1. Dataset 2: Provide statistics on how many PSPs self-identified issues of non-compliance.
        2. What we plan to do: work with PSPs so they remedy the non-compliance.
    2. Investigating compliance with PA Plan: We conducted PA Plan audits of top 25 PSPs by doing X, Y Z. Our results are:
      1. Dataset 3: Provide statistics on how many PSPs self-identified full compliance and how many were actually compliant, etc. NTD: We asked fordirection from BoD on what to report?
      2. What we plan to do – work with PSPs and monitor compliance moving forward.
  1. Monitoring Non-compliance
    1. Describe at a high-level what are the Procedural Code requirements we monitor –PSPs provide information required during complaints handling process; PSPs must refrain from collections activity when a customer submits a complaint.How do we do this?  Explain compliance breaches are monitored and tracked by our complaint-handling staff. When there are issues of major non-compliance such as PSP not implementing a resolution, it gets escalated to Manager, CCA. (see “enforcement activities”).2018 Procedural Code noncompliance issues
      1. Dataset 4: 1,000+ PC noncompliance issues summarized
      2. Dataset 5: PC noncompliance issues breakdown by PSP
    2. Compliance with Financial and Financial reporting obligations
      1. Dataset X: Certification of Retail revenues forms.  These PSPs are non-compliant and ??
      2. Dataset X: Payment of CCTS fees.  These PSPs are non-compliant and will be sent to collections.
  1. Enforcement activities
    1. Highlights of “Major” Cases of Non-compliance
      1. AllCore
      2. BV
    2. Other highlights
      1. ICA Canada Online – cease and desist

Background

In March 2016, the Canadian Radio-television and Telecommunications Commission (CRTC) reviewed the CCTS’ mandate. During this proceeding, the CCTS expressed concern about the challenges faced when working with Participating Service Providers (PSPs) and particularly with ensuring compliance with their participation requirements. Some of the big service providers explained that the CCTS should engage in regular compliance monitoring in order to ensure PSPs are compliant.[1]

Subsequently, the CCTS’ mandate review resulted in the CRTC expecting[2]the CCTS to:

  1. monitor and track PSP compliance and follow up with enforcement; and to,
  2. publish in a prominent manner the names of PSPs that are not complying with their participation requirements.

So, the CCTS officially launched the Compliance Monitoring and Enforcement Program (CMEP) in January 2018.

The purpose of CMEP is to ensure that PSPs are adhering to the obligations set out in the Procedural Code, Participation Agreement and Public Awareness Plan. This is to ensure CCTS can continue to provide free, efficient service to Canadians.

The CMEP includes four main processes:

  1. Compliance Certification
  2. Public Awareness Plan
  3. Procedural Code obligations
  4. Payment of invoices and fees

CCTS monitors, tracks and takes action on issues of non-compliance, depending on the severity and scale and scope of the particular issue.

Purpose

This report summarizes the compliance and enforcement work that the CCTS carried out this past year to ensure PSPs are adhering to their participation requirements.

The CMEP launched in January 2018 as we started collecting non-compliance issues during the complaint handling process. In February 2018, we reached out to the service providers and asked them to provide Annual Compliance Certification forms and in July 2018 we reached out to the big service providers to let them know that we would be auditing their compliance with the Public Awareness Plan.

The results of CCTS’ monitoring and enforcement activities presented in this report are for the reporting period of January 1 – October 31, 2018.

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