Project Summaries - Service d'aide au consommateur de Shawinigan

1 – 453, 5^e Rue
Shawinigan, Québec
G9N 1E4
Tel: 819-537-4752
FAX: 819-537-5259
E-mail: sac_04@inno.org

1. Cell Phones Exposed

$66,414

"Many cellular telephone companies use advertising or incomplete statements that sometimes lead average consumers to make a commitment without knowing what they are really committing to. It is in the public interest and the interest of consumer protection to identify and analyse weaknesses in the commercial activities of cellular telephone service providers."

SAC will compile data from government stakeholders, cellular telephone companies and Canadian users. This will be done in part by creating a newsgroup. Gathering this information will enable SAC to identify the business practices used in this sector, which will be dissected and analysed. Blatant cases will then be forwarded to and discussed with the national and federal government agencies concerned.

Methodology

• extend the activities to an entire Canadian market;
• ask for input from consumers, involve the government agencies concerned and ensure the cooperation of cellular telephone companies;
• meet with the stakeholders and project participants and obtain from them the information and documents needed to carry out the project;
• create a newsgroup on the Internet and invite Canadian consumers to take part;
• analyse the information and documents;
• identify the business practices used in this sector and dissect them;
• identify blatant cases of questionable business practices;
• produce an educational brochure based on case analyses;
• make consumers aware of the results by distributing the brochure in hard copy and electronically and creating a FAQ section on the SAC Web site;
• bring blatant cases to the attention of the Competition Bureau and the Office de la protection du consommateur, discuss the cases with them and get their reaction;
• draft a report;
• release the report at a press conference.

SAC will make Canadian consumer aware of the results by distributing the report through the media and using educational tools like a brochure and an FAQ section on the SAC Web site. The report will include recommendations that the SAC will submit to the various stakeholders affected by its study.

2. Mail Rebates: Not Always a Gift

$42,085

"Mail rebates are a fairly recent phenomenon and have been very common in businesses for a number of years. However, after complaints from consumers, it has been learned that while they are appealing, rebates can be disappointing, too. Consumers complain about difficulty meeting the eligibility requirements, long waiting times and having to ask repeatedly for their rebates. As a result of these problems, most consumers give up before they receive the rebate they were promised."

SAC (Service d'aide au consommateur) will to conduct a survey of consumers and Canadian companies that issue mail rebates in order to clarify the potential problems. The study will focus on the following aspects: how rebates are represented; how service is delivered; consumer satisfaction with the practice and consumer complaints; the regulations and statutes applicable to rebates; possible solutions to make the practice fair to consumers. The results of the survey will be measurable through three main activities:

1. A Canada-wide survey conducted by a specialized polling firm;
2. An opinion poll of Quebec consumers;
3. Production of a final report including a general overview of the issue, the results of the survey and recommendations to all the players.

More specifically, the activities will entail:

• a North American search through the Internet, print media and specialized magazine in order to better identify the magnitude of the problem;
• based on that search, questionnaires will be developed for consumers regarding their experience with mail rebates; the questionnaires will be used for the surveys;
• a secondary search to shed light on the problem of mail rebates in view of the statutes and code governing the practice;
• news releases to regional media announcing the start of the project, a regional survey and a survey through the SAC Web site and a call for the public to share their experiences;
• the Office de la protection du consommateur and other Canadian and American consumer protection agencies will be asked to share with SAC their observations regarding the practice of mail rebates;
• a recognized polling firm will then be hired to conduct a Canada-wide survey; SAC will use more or less the same questionnaire used in the regional and provincial surveys; the surveys will be carried out over a period of two months;
• the survey data will be compiled and analysed;
• a detailed report will be written.

The report will be available to the general public and all the Canadian players concerned.