Friday, May 30, 2008
One-sided consumer contracts
Earlier this week, I received a home phone offer that was mailed to the attention of one of my college kids. It reads:
However, there is another line that says "Bundle discount may be terminated by [us] upon 30-day notice." In other words, we may decide to raise that $14.95 rate by 33% and you will still be stuck with us for the rest of your 2-year contract.
How can it be reasonable for the service provider - a major Canadian telco - to lock up a customer for 2 years, but be free to change the price substantially in the middle of the contract period? What exactly is the meaning of a contract if one side gets to change a key term, price.
This is reminiscent of the issue of system access fees being outside of the contract.
As I have said before, I'm not as bothered by system access fees as by the concept that some carriers believe that they can change fundamental pricing in the midst of a contract. If the service provider changes the rate, they should have to offer to release the customer from the contract.
Fair is fair.
Technorati Tags:
system access fees, contract
You're currently enjoying Internet service from [us], and we're delighted to have you with us. In appreciation, we'd like to extend a special offer on our new Home Phone packages.The letter then describes packages starting at $14.95 per month and an additional $5 discount on a bundle of home phone and internet. At the bottom of the letter are 6 lines of micro-print that says (among other things) that the $14.95 rate is available "to customers who subscribe to home phone with a 2-yr. contract."
However, there is another line that says "Bundle discount may be terminated by [us] upon 30-day notice." In other words, we may decide to raise that $14.95 rate by 33% and you will still be stuck with us for the rest of your 2-year contract.
How can it be reasonable for the service provider - a major Canadian telco - to lock up a customer for 2 years, but be free to change the price substantially in the middle of the contract period? What exactly is the meaning of a contract if one side gets to change a key term, price.
This is reminiscent of the issue of system access fees being outside of the contract.
As I have said before, I'm not as bothered by system access fees as by the concept that some carriers believe that they can change fundamental pricing in the midst of a contract. If the service provider changes the rate, they should have to offer to release the customer from the contract.
Fair is fair.
Technorati Tags:
system access fees, contract
Posted by Mark Goldberg @ 5/30/2008 06:00:00 AM 
Comments:
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The problem is that it's not just the price they can change ... with all of the getout clauses inserted by the major providers of telecom services (phone and cable) they can change virtually ANYTHING they choose.
The basic terms of service are becoming more and more put in favour of the service provider and deregulation (for example of Bell Canada) is only making this worse.
The basic terms of service are becoming more and more put in favour of the service provider and deregulation (for example of Bell Canada) is only making this worse.
Posted by 
: 2:09 PM, May 31, 2008
: 2:09 PM, May 31, 2008
Play their game:
Edit the contract as you see fit, make yourself a copy, and mail the original to them as a counter-offer.
If they provide you the service, then they accepted your offer.
Didn't read it? Then a lucky corporation (which can downplay its excess bargaining power) gets to void the contract, or it gets to waste a lot of money litigating a losing fight. (Are shareholders listening? That wasted money is yours.)
Edit the contract as you see fit, make yourself a copy, and mail the original to them as a counter-offer.
If they provide you the service, then they accepted your offer.
Didn't read it? Then a lucky corporation (which can downplay its excess bargaining power) gets to void the contract, or it gets to waste a lot of money litigating a losing fight. (Are shareholders listening? That wasted money is yours.)
Posted by : 1:13 AM, June 02, 2008
: 1:13 AM, June 02, 2008
This happened to me as well twice in the past few months. First, my cellphone provider raised the rates on a number of services, including voice mail, so I complained to the CCTS and had my contract voided and I moved to prepaid. Second, my television provider decided to introduce a system access fee. Again I complained to the CCTS, which doesn't actually deal with TV service, but again I got satisfaction - my complaint was forwarded to the provider, who called me and gave me a discount for the rest of my contract that amounted to more than the access fee. Bottom line: the CCTS works, use it!
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Posted by 
Peter Nowak : 11:09 AM, June 02, 2008
Peter Nowak : 11:09 AM, June 02, 2008 << Home
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