PIAC refiles Part I application against shomi

OTTAWA, April 27, 2015 – The Public Interest Advocacy Centre (PIAC) today refiled an application to the Canadian Radio-television and Telecommunications Commission (CRTC) asking that the regulator stop the “shomi” over the top TV service from being offered only to Rogers or Shaw internet customers.
“Shomi cannot tie internet access to Shaw or Rogers without hurting other internet providers and their customers,” said John Lawford, Executive Director and Counsel to PIAC. “We have called on the CRTC to stop this unduly preferential offering.”
The CRTC’s latest Let’s Talk TV decision initiated an inquiry into a potential regulatory fix for “hybrid video on demand” (HVOD) services that tie “over-the-top” (OTT) delivered programming to conventional broadcasting subscriptions.  While PIAC is commenting on that process to deal with potential preferences in the broadcasting distribution field it had to address lingering problems with the shomi service that likely would not be addressed in the CRTC’s HVOD hearing.
“Canadian consumers watch more and more over-the-top programming,” said Geoff White, Legal Counsel to PIAC. “We want the rules to be clear so that all internet users can benefit equally from new offerings in this market.”
PIAC had previously filed two complaints, against shomi and Bell-led OTT service CraveTV – which the CRTC had returned – with an invitation to refile in the event that the proposals made by the CRTC were not adequate to address any perceived problems of undue preference.
For more information please contact:
John Lawford
Executive Director and General Counsel
Public Interest Advocacy Centre (PIAC)
(613) 562-4002 ×25
Mobile: (613) 447-8125
jlawford@piac.ca
 
Geoff White
Counsel to PIAC
(613) 562-4002 ×24
Mobile: (613) 612-1190
gwhite@piac.ca
www.piac.ca

The Cost of Loyalty Programs

Written By Gina Roberts

Many Canadians are signed up for loyalty programs because being rewarded for everyday purchases seems beneficial. They add to the ‘shopping experience’. Just swipe for points and savings; but there is a danger to this simple method.

PIAC’s “Customer Loyalty Programs: Are Rules Needed?” report shows that ease of use is a determining factor in how much consumers enjoy a loyalty program. In response to this, some businesses have tied their programs to credit cards so consumers can gain points easier and faster to spend on rewards.

Rewards vary depending on the program: some exchange points for discounts and some for items or services. Because points are redeemable, many consumers using these programs view points as a currency interchangeable with money. In reality, the value of these rewards in relation to consumer expenses can be less than 2%, which means consumers must spend far more than the reward’s worth to see them.

By attaching loyalty programs to credit cards consumers may be spending money they don’t have to get these rewards.

The report identified that consumers with loyalty programs usually spend money at particular stores to gain points and are encouraged to use their program card. When it’s is attached to a credit card it’s easier to use and consumers can pay at the same time. This becomes dangerous as people will make more purchases with credit, which garners interest, and have to pay off a debt. On top of this, special offers and promotions associated with loyalty programs encourage consumers to make additional purchases with their cards in order to get more points. This can lead to substantial credit card debt, just to gain points and rewards at a rate of 2% or less.

Younger (ages 19 – 29) credit card users with loyalty programs may be particularly exposed to credit debt because they’re more receptive to receiving information on promotions, special offers, and deals, as well as make purchases, than other users. Furthermore, this age group is more connected with social media and networking technologies which businesses are utilizing more and more to reach consumers, giving this group easier access to deals and offers wherever they go.

Consumers should be aware of their spending habits, but those with loyalty program affiliated credit cards should pay particular attention. The point totals may not add up to the costs.

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