Canada’s Watchdog Wants ‘Nutrition Labels’ for Internet and Wireless

The Competition Bureau says it’s time for internet and phone providers to be more upfront with their pricing — and that means clearer, standardized labels that show what Canadians will actually pay.

Speaking at a recent CRTC consultation last Friday on the matter, Associate Deputy Commissioner Brad Callaghan pushed for the introduction of a “broadband nutrition label,” similar to what’s already in use in the U.S. These labels would help consumers compare internet plans more easily, using a familiar format similar to food packaging.

Of course, all ‘Big 3’ telecoms in Canada are opposing the idea. Rogers, Telus and Bell don’t want US-style internet labels here. There’s nothing to see here, folks. Everything is just fine and dandy in Canada.

“We agree—the label is a good idea and Canadians are already familiar with it,” Callaghan said.

The Bureau wants these labels to display the full monthly cost of a plan — not just a base rate with fine print for added fees. That’s because Canada’s Competition Act prohibits “drip pricing,” which hides mandatory charges until checkout.

“Keeping the label consistent with the drip pricing provisions means making sure that the carriers cannot be permitted to display a price that is unattainable,” the Bureau explained.

The proposal also calls for labels to be required wherever internet plan details are shown — and to be included in notices when a customer’s contract is about to end. That way, people can actually use the info when it matters most.

Dr. Jonathan Fonberg, the Bureau’s behavioural science expert, said the idea is to make switching easier by cutting through confusing fine print. “Consumers are less likely to engage with information if the effort required to identify and understand that information is high,” he said.

The Bureau also wants these labels extended to wireless phone plans. “Every Canadian wireless network operator also offers home Internet,” Callaghan noted. “Extending the labels to wireless could deliver significant benefits for minimal additional cost.”

Essentially, the Competition Bureau is pushing for simpler and more honest communication from telecom providers, aiming to boost competition by making it easier for Canadians to shop around. But of course, telecoms don’t want this. It will cost money to do this and might increase prices for consumers (of course it will).

“With clear, standardized information to compare their options, consumers can take advantage of competition more easily,” Callaghan said. “And companies will compete harder to keep them.”

What do you think? Should the CRTC implement these labels for internet and wireless pricing in Canada? As it stands, tracking internet and wireless pricing is a tall task here, as websites change frequently and so do pricing.