Rogers CEO summoned to Ottawa after avoiding questions about price increases in contracts

The CEO of Rogers Communications has been summoned to testify before a parliamentary committee after trying to avoid the limelight on Thursday by sending a subordinate to defend contracts for TV, internet and home phone that can increase in price while customers are locked in.

Last month, after Go Public reported that Rogers was increasing the monthly price of television box rentals, the standing committee on industry and technology requested testimony from Tony Staffieri.

After delaying an appearance once, Staffieri was set to appear on Thursday. Instead, at the last minute, Rogers’ president of residential operations, Bret Leech, joined the committee virtually, unleashing a storm of criticism from MPs across all parties.

“They … did a rope-a-dope,” said NDP MP Brian Masse, who tabled the original motion to hear from Staffieri. “I don’t have much interest in questioning this witness.”

“This is pathetic,” Conservative MP Rick Perkins said, adding that Staffieri declined two other invitations earlier this year — although he did appear once in March. “How many times do you have to be kicked in the you-know-what before you say I’ve had enough?” 

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“I think what we’re experiencing here is much like the service customers experience with Rogers,” Conservative MP Michelle Rempel Garner said. “The behaviour of the CEO towards this committee … they think we’re stupid, colleagues, they really do.”

The committee unanimously passed a motion summoning Staffieri to appear within seven days.

A Rogers spokesperson told Go Public that Staffieri did not appear, as requested, due to “an unforeseen scheduling conflict” but will co-operate with the summons and appear before the committee next week.

The issue that prompted the request to hear from Staffieri was a $7 price hike for every Rogers TV box in a household but one ($12 for newer customers), which unleashed a wave of frustration from the company’s customers across the country.

Hundreds of people wrote to Go Public, many saying they were misled into signing contracts they thought guaranteed a regular monthly price for the duration of the agreement — unaware of a clause in the contract that allows Rogers to increase prices for various services.

“They’re [contracts] marketed as a fixed rate … except if you’re a Rogers customer, apparently, you gotta read the 42 pages of the contract,” Perkins said in committee. “Buried in that is the escape valve.”

Masse said companies such as Rogers have a responsibility to respond to parliamentary requests to address concerns about their operations. “When these companies often get public dollars for investments on their infrastructure and so forth, and tax cuts and breaks and grants, they should be more forthcoming with regards to how they treat Canadians,” he said.

During the committee’s discussion, Leech was shown on the large screen sitting silently, along with other MPs attending the meeting virtually. He did not utter a single word and was instructed by MPs to let Staffieri, his CEO, know they were displeased with his absence.

MPs have also asked to hear from Bell Canada CEO Mirko Bibic and Telus CEO Darren Entwistle about price increases that consumers say have caught them off guard. No date was specified for their appearances.

CRTC holding consultations

The Canadian Radio-television and Telecommunications Commission (CRTC) says it is also worrisome that Canadians are being surprised by unexpected price changes in Rogers contracts.

“We share their concerns,” Scott Hutton, the CRTC’s vice-president of consumer, analytics and strategy, told Go Public. “We are fully aware that Canadians are struggling with affordability these days.”

Last week the regulator announced public consultations that it says will, in part, review contract clauses that allow companies to increase prices during a contract.

“That issue will be squarely on our agenda,” Hutton said. “To address in-contract changes and how Canadians can be protected.”

WATCH | Tony Staffieri skips appearance before committee:

Rogers CEO Tony Staffieri skipped an appearance at a government committee to answer questions about revelations from a CBC News Go Public investigation into ‘misleading’ contracts that resulted in customer bills being higher than anticipated.

Hutton also sent a sternly worded letter three weeks ago to Bell, Rogers, Telus and other telecom providers, reminding them that “Service providers should not be surprising their customers with price increases beyond the price they had originally agreed to.”

Hutton said Canadians “need to be far more aware” of the Commission for Complaints for Telecom-television Services (CCTS), a mediator for telecom providers and their customers.

People who can’t resolve a dispute with their provider can file a complaint. The CCTS told Go Public that in October, it observed an “uptick in complaints generally from Rogers TV customers,” shortly after Rogers implemented its increase for TV box rentals.

WATCH | No-show by Rogers CEO before parliamentary committee angers MPs:

Conservative MP Michelle Rempel Garner says she ‘cannot believe’ the CEO didn’t show up as expected.