More News of Council Activities

Since the last blog posting much has happened. The use of a blog to keep friends of the Council up-to-date is new to me and for that reason it has not be frequent. I intend to remedy that!

Canadian Payments Association

In the last blog, I reported on my appointment to the Stakeholders Advisory Council (SAC) of the Canadian Payments Association (CPA). The first meeting with its new council member orientation took place in Toronto on April 29. What an interesting organization. To read about the CPA and its manadate go to the CPA website http://www.cdnpay.ca/

The SAC meets only twice a year but the members are involved in committeess and ad hoc task forces on payment issues. I attended the meeting of the Bill Payments Task Force in Vancouver on June 12 and 13. The Task Force was developed as a result discussions from the November 2007 Stakeholder Roundtable. The Task Force was charged with developing policies for CPA in four areas of identified concerns:

• Facilitating Faster Payments;

This is a very interesting one for consumers since it is dealing with the present lag between money moving from your account to pay a bill and the actual posting of the payment to your account. For example, if I pay a utility bill at a financial institution in person or on line, the money is immediately removed from my bank account but it may not be posted to my utility account for some days. This lag may result in late payment charges. In other national jurisdictions there is "real time" posting which eliminates late payment charges. CPA is examining how the "real time" can be implimented in Canada.

• Scope of CPA - New Players and New Service Offerings;

CPA is limited in its legislative mandate to setting rules for the clearing of payments. With new players entering into the payment system, for example the credit cards becoming debit cards, does regulation have to be changed? Credit cards currently are not part of the payment system and not governed by CPA.

• Consistency Handling Payments - Common Standards and Processes;

CPA is doing a study of payment handling to determine the best practices and whether the CPA rules need to be changed to ensure common standards and practice.

• and, Transparency - Clear Roles & Responsibilities of Parties.

Consumers are not generally aware of the payment handling system nor are they aware of their responsibilities under the CPA rules. CPA is examinig how the system can be more transparent.

CPA has recently launched a consultation on 2 issues:

• Proposed Framework and Draft Rule for PIN-less Point Of Sale Debits
  (Document Reference SAC08-026) to consultation@cdnpay.ca by August 20, 2008.

• and, Proposed Changes to Requirements for Member Financial Institutions' Clearing Arrangements (Document Reference SAC08-027) to consultation@cdnpay.ca by September 15, 2008.

The new PIN-less POS Debit is of major concern to the Council. The proposal is for a "touch and go" system like those already in place for gasoline purchases at some gas stations which automatically place the charge on your credit card without entering a PIN or without signature. The move to having a PIN-less POS Debit card is not unlike the value or cash loaded cards that exist for Starbucks. However, the new card will allow for charges without varification by PIN or signature for up to $100 per transaction taken from your bank account (or alternatively charged to your credit card). This may put the consumer at considerable liability for charges on a misplaced or stolen PIN-less card. The Council will be participating in the consultation.

After a two week holiday in May, I returned to a hectic schedule of meetings that took me to Ottawa, St. John's Newfoundalnd and Labrador, Vancouver and Seould, Korea.

Canadian Consumer Initiative (CCI)

The members of CCI (the informal coalition of consumers groups which includes the Council, Option Consommateurs, L'Union des consommateurs, Public Interest Advocacy Centre, Automobile Protection Association and the Alberta Council on Aging) met in Ottawa for a series of meetings. On May 26, we met with Commissioner Sheridan Scott, Competition Bureau, and her senior to discuss consumer issues being addressed by the Bureau. On March 28 we met with the Office of Consumer Affairs (OCA), Industry Canada to discuss national consumer issues and the problems that consumer groups have with the adminstration of the OCA Contributions Program. It was a very successful meeting with the Director General of OCA, Michael Jenkin, and senior staff. We agreed to make a proposal to OCA on needed changes to the Program and have subsequently agreed to meet in Ottawa on September 30 for a full-day session. OCA is inviting the Department of Finance and the Financial Consumer Agency of Canada to attend. Christina joined me at the OCA meeting.

The Rideau Institute, which co-ordinates CCI under contract, arranged for a series of meetings with 25 Parliamentarians and senior staff over the next three days. It was a hectic round of meetings where we presented our common consumer advocacy positions on a numer of issues: electronic funds transfer, pre-authorized debits, food labelling, energy efficiency in the national building code and raising the status of the consumer voice in Cabinet. The Consumer Voice issue has generated significant interest by senior government members and staff as well as opposition members. It has been suggested that the government establish a Secretary of State for Consumer Affairs. We continue to press this option.
For the first time, CCI was able to meet with Jack Layton, leader of the New Democratic Party and his chief of policy. We also met with Mr. Dion's senior policy advisor. Both meetings were very positive. Lucienne Bushnell joined me and Christina in the Hill Blitz. Christina was there for the Wednesday OCA meeting and afternoon Hill sessions and Lucienne joined me for Wednesday and Thursday. It is wonderful to have Lucienne, a francophone, now living in Montreal to be able to cost-effectively participate in the Hill activities. Her grasp of consumer issues and her facility in both french and english is a major enhancement of the Council.

The next CCI meeting will take place September 8 in Montreal and the next Hill Blitz is scheduled for November 18, 19, 20 (unless there is an election!).

National Standards System (NSS) Annual Conference

Christina and I were invited to the National Standards System Annual Conference in St. John's Newfoundland and Labrador June 2 to 5 2008. Health Canada sponsored my travel, accommodation and registration and the Canadian Standards Association (CSA) did the same for Christina. It was a full schedule of speakers and workshops for the four days with opportunities for Christina to learn more about the Standards System, meet industry and government representatives and make personal contacts with prospective partners and members of the Council. In fact, it was at the Conference where the CEO of the Underwriters Laboratories Canada (ULC) made his commitment to become corporate members. Their application has been received.

2008 OECD Ministerial on the Future of the Internet Economy

After a four day return to Victoria, I left on June 14 to fly to Seoul, Korea to attend the 2008 OECD Ministerial on the Future of the Internet Economy. The Ministerial meeting was the first on the internet since Canada hosted the 1998 meeting in Ottawa. The Korean Government provided financial assistance to civil society representatives (NGOs) to attend the meeting. The Ministerial meetings were scheduled June 17 and 18. On June 16, civil society groups met in full session to discuss internet issues. The result was the Civil Societies Seoul Declaration which states that the Internet should be available to all. We therefore call attention of the OECD to Ministers to the following issues :

• Freedom of expression
• Protection of Privacy and Transparency,
• Consumer Protection.
• Employment, Decent Work and Skills.
• Promotion of Access to Knowledge.
• Internet Governance.
• Promotion of Open Standards and Net Neutrality.
• Balanced Intellectual Property Policies.
• Support for Pluralistic Media.
• Inclusive Digital Society.
• Cultural Diversity

A full report on the Ministerial and the Civil Societies Seoul Declaration can be found at http://thepublicvoice.org/.

The Council was an active participant at the Ministerial and participated in the Canadian delegation which was led by Michael Dicerni, Deputy Minister, Industry Canada and Jennifer Stoddart, Commissioner, Officer of the Privacy Commissioner. Our CCI colleague, Genevieve Reed from Option Consommateur, was also there.

Another return to Victoria for rest and relaxation before a return to Toronto for meetings and participation in a privacy forum spronsored by the Ontario Priacy Commissioner and the University of Ontario.

Electramedia and the Website

I met with Paul Chato, principal of Electramedia our webiste management and design firm, to continue the discussion we started in February about the redesign of the website. In addition, we discussed the creation of a sub domain to provide the Council with a discrete website on gasoline prices which is a proposed project with the Canadian Petroleum Products Institute (CPPI) one of our corporate members. More to follow as we discuss the Council "brand" and what we want the website to reflect.

Changes to Debit Card Fees and new Debit Card Competition

On more than one occasion, I have become aware of the fact that there are changes being considered. It has been raised at the CPA and more recently at the Competition Bureau in Toronto where I was approached by one of the retail paricipants at the meeting to advise that changes were being contemplated that might have significant cost implications for consumers. The current rules for the manner in which debit (Interac) fees are set are based on a Competition Bureau consent order made 12 years ago as the result of a Tribunal ruling. Changes which effect the order cannot be done without the consent of the Competition Bureau. It is widely suspected that Interac wishes to change the fee structure from a fixed fee per transaction (transfer) to a percentage of sale value. This would mean a major increase in cost to the retailer for use of Interac and most probably be passed on to the consumer. In addition to the Interac changes, it is also suspected that Visa and Master Card (now publicly traded companies) are interested in entering the debit business. The Council will continue to follow the issue and make contact with our corporate members Visa and the Retail Council of Canada to find out what the implications for consumers are.

Public Forum on Ontario's Proposed Enhanced Driver's Licence (EDL)

I was invited to participate in the Canadian IDentity forum on the proposed Ontario EDL. The Ontario government has introduced legislation to provide for an Enhanced Driver's Licence which would be accepted as proof of identity and citizenship by the US Border Authority. The British Columbia government is already in the project testing phase of a BC EDL.

The forum was sponsored by the Information and Privacy Commissioner of Ontario, Ann Cavoukian and the University of Toronto, Faculty of Information. It was the idea of Professor Andrew Clement of the Faculty of Information who believed that it was important to have a public discussion of the EDL and its privacy implications. Speakers included representatives of the Canada Border Services Agency, Ontario Ministry of Transport, Binational Tourism Alliance, Council of Canadians, Queen's University -The Surveillance Project, the Consumers Council of Canada, the Canadian Natioal Institute for the Blind. Technical information was provided by the Ontario Ministry of Government Services and GS1 Canada who set standards for Radio Frequency Identity Devices (RFIDs) which are imbedded in the EDL.

The Council was only one of the speakers who raised the question of security of personal information with the EDL. These included the encryption and range of reading of the RFID, location of the data base (Canada or US?), and the information required to be authorized for a EDL. In BC, the data resides with the US Border Authority and the questions required to be authorized for an EDL are considerably more intrusive than those that required to get a Canadian passport.

The Commissioner assured the audience that she would be diligent in overseeing the process in Ontario and encouraged all those concerned to make representation at the hearing when scheduled. The sponsors of the forum were surprised at the standing room only attendance at the forum and the level of discussion. The forum presentations, including the Council's, can be seen at the forum website http://www.idforum.ca/.

Council Director of Research and Communications

The Board of Directors at its Conference Call Board Meeting on July 3 approved the staffing proposal made by the Executive Director, Christina Bisanz. On July 17, I met with Christina and Ken Whitehurst to discuss the terms of his contract with the Council as Director of Research and Communications. The contract was signed and Ken began work on July 17. Ken will have responsibility for project management and development as well as developing and implementing a communications strategy.


BC Gift Card Legislation

Having returned to Victoria on July 18, I arranged for a meeting with Susan Walker, Senior Policy and Legislative Analyst of the Office of the Solicitor General BC to discuss the status of their regulations on Gift Cards. The BC approach has been to mirror the Ontario and Manitoba legisaltion and the Council will make representation when hearings are held in the fall.

Office of the Privacy Commissioner of Canada

Elizabeth Denham, Assistant Privacy Commissioner asked to meet with me when she made a visit to her provincial colleague, David Loukidelis, Information and Privacy Commissioner of British Columbia. She and I met over coffee for an hour on July 25. Ms. Denham has been given the mandate, personnel and budget to implement a regional outreach plan directed at small and medium enterprises (SMEs) but she want to extend that to individual Canadians. The intent is to raise awareness among SMEs of privacy issues and help them to become compliant with federal legislative requirements. She expressed real interest in the Contributions Program proposals that both Option Consommateurs and the Council made in March. Although the proposals were not funded out of the 2008 budget, she encouraged both of us to submit again in 2009. In the mean time, she would like to investigate working with Option and the Council in her regional outreach plan. We have tentatively set a meeting to discuss this with her and her senior staff when Option and the Council will be in Ottawa on September 29.

A Busy First Month With The New Executive Director

Posting by Bill Huzar, President Consumers Council of Canada

Privacy Commission Contribution Program
The Council submitted two project proposals on time to the Office of the Privacy Commissioner. The first, for $48,000, is Part 2 of a project that was submitted by Option Consommateurs to develop a plain language guide to privacy rights and responsibilities for Canadians. Option, if funded, will research and produce the guide. The Council will take the guide, translate it and product test it across the country and arrange for distribution to consumers. The second, for $50,000, was developed by Elizabeth Nielsen and deals with the privacy issues raised in her OCA project on Nanotechnology. The announcement of funding should be made by the end of this month.

Since I was scheduled to participate in its 2008 Visa Canada Security Symposium, Christina Bisanz, the Council's new Executive Director, set up a daunting two seek schedule of meetings beginning with a Central Advisory Committee Meeting on March 25. What follows is a detailed report on the meetings.

March 25 2008

Central Canada Advisory Committee Meeting
Alison Knight chaired the meeting held in the new office boardroom. The members in attendance were favourably impressed with our new quarters. The agenda (attached) was specifically designed to engage the members in the continuing work of the Council.
I reported on the changes that had taken place in personnel and office location and the response by all was positive.
I was surprised at the high level of participation by the members.
There was considerable interest in the work of David Simpson on the ISO Social Responsibility. Members suggested that we make David available as a speaker to association conferences and meetings to spread the word on the good work the Council is doing by supporting David. The members were unanimous in their encouragement of the Council to continue to support David’s ISO involvement and indicated their continued financial support.
The members were surprised by the Nanotechnology Project and encouraged the Council to add it to the list of things offered as conference and meeting presentations.
The most heated discussion centred around the Competition Bureau’s report on self-regulated professions. They advised the Council to follow up on the reaction to the report by the national associations of the professions reported on.
The members suggested meeting again in June.

March 26 2008

2008 Visa Canada Security Symposium
For the second time, the Council was invited to participate in this annual event. Whipple Steinkrauss was invited in 2006. The Council was asked to represent the consumer perspective on a panel on The State of Data Security and Public Policy. (Agenda is attached) I was able to use our contacts with CCI and the Standards Council Consumer and Public Interest Committee to flesh out the consumer perspective. The most surprising thing about the symposium was the position taken by Derek Fry, President Visa Canada in his opening remarks supporting the recommendations of the House of Commons Ethics Committee in amending Canada’s privacy legislation PIPEDA making it mandatory for companies to report security breaches to the Privacy Commissioner.
The report by Bob Russo, General Manager of Payment Card Industry Data Security Standards Council, was very reassuring on the level of security demanded by Visa, AMEX and Master Card of their retail clients.

March 27 2008

Sobeys

Christina had arranged to meet with Scott Cooper, Vice President marketing and product innovation of Sobeys Inc a national food retailer. Christina explained the role the Council could play with Sobeys as a corporate member and we agreed to continue the discussion at a future meeting.

OTEC Training & HR Solutions
Christina and I enrolled in a seminar on “Engaging Generation Y” as part of the development of the Trillium Project. The half day session was interactive and expanded our consciousness of the attitudes of the millennium generation (those born from since 1980). In addition to what we learned about the age group and its motivation, we made contact with some very interesting 30ish management individuals who we will try to involve in the work of the Council.

March 28 2008

Investment Funds Institute of Canada (IFIC)

Christina and I met with Joanne De Laurentis, CEO of IFIC to discuss possible consumer projects between the Council and IFIC. There is great potential with IFIC particularly with the issue of plain language and financial literacy. IFIC is considering the creation of a two page risk assessment document for investors which would supplement the normal prospectus for investments which we all agree is impossible for normal consumers to understand. The Council was informed about the industry’s financial education committee and encouraged to become involved in it. Christina will follow this with Whipple and our financial issues committee.

Matt Kelly
Christina and I met with Matt Kelly of Level5 Strategic Brand Advisers in the small committee room adjacent to our office. We discussed the potential of Matt joining the Council as a member of the Board filing the vacancy created by Christina’s resignation. He was genuinely interested in the changes that are taking place and expressed a desire to be part of the strategic reassessment of the Council and its operation. Having done the branding analysis of the Board upon which he reported to the December Board meeting, Matt is fully aware of the potential the Council holds. He was offered a position on the Board subject to Board approval.
(Subsequent to the meeting, the Board approved Matt’s joining the Board to fulfill the vacancy and to put his name forward for 2008-2009. Christina has completed the Board Orientation with Matt.
Welcome, Matt.)

March 31 2008

Sanford Brands
Christina met with John Hyslop and Mona Steitieh of Sanford Brands, our newest corporate member to discuss what potential there is to work together particularly on the issue of identity theft and security. Christina will report further on the meeting.

Ontario Ministry of Government and Consumer Services
On Friday, March 28 I was contacted by Minister McMeeken to advise the Council that he would be introducing Ontario’s Payday Loans Act, 2008 in the legislature on Monday, March 31. We were offered a briefing of the bill before the release and asked to attend the legislature for the introduction. I met with his Executive Assistant on Monday and received a full briefing on the bill. I attended the Legislature for the announcement and was interviewed in the lobby by the press. (There was no media pickup.)
The bill has some good points including a funded consumer education component but is far from as comprehensive as that passed in Manitoba. We will have to watch carefully as the Expert Panel (which does not include us) hold hearings on rate setting over the summer.

April 1 2008

Public Policy Forum

The Public Policy Forum held a symposium “Governing Ontario: McGuinty Mandate #2” on Tuesday April 2nd. The day long event (agenda attached) gave the Council profile among the 100+ business and government representatives in attendance. Of particular interest for the Council was the discussion on the greening of Ontario. I was able to bring to the discussion the BC experience in incentives for energy efficiency and the carbon tax which are on the agenda for the McGuinty government and the Council’s initiative in energy efficiency in the National Building Code. In the area of energy production, it was clear that the McGuinty commitment to nuclear was firm but that energy efficiency was high on the agenda. Our OCA study on Smart Meters should provide us with research to bring the Council into the forefront in the discussion.
I was approached by Brendan Hawley,a lobbyist for the Canadian Gas Association who wants to talk to the Council about consumer issues which they have identified. Janet Ecker, former Ontario Minister of Education and Treasurer, who is now the President of the Toronto Financial Services Alliance which represents banks, insurance companies and brokers who want to make Toronto a world financial centre like London or New York and we discussed the issue of financial literacy. She offered to meet to discuss how the Alliance and the Council might work together on the issue.

Andrea Howarth
Christina and I met with Andrea Howarth, Ontario MLA and NDP Critic for the Ministry or Government and Consumer Services. This was our first meeting with the Ontario opposition critics and in the hour and a half we spent with her we explained the operation and mission of the Council and she offered to meet with us on consumer issues as they arise.

April 2 2008

Canadian Petroleum Products Institute

Christina and I met with Faith Goodman, Vice President of CPPI at her request. She wanted to talk about a long-term corporate membership relationship and had some ideas of project work that the Council could undertake funded by CPPI. Christina agreed to draft a project proposal on the pricing of fuel oil which Goodman suggested as a first project.

Lio and Associates

Christina and I met with Michael Lio to go over the fourth quarter financials and the final reports on the OCA projects. We transferred all the remaining files at Lio and Associates to the Council for delivery to the new offices.

April 3 2008

Competition Bureau

Christina and I attended the Ontario Regional Competition Bureau meeting in Toronto. It was an opportunity for Christina to meet the regional Bureau people and members of the business community who regularly attend. Attendance was poor but several consumer issues were discussed including prepaid phone cards, deceptive environmental claims in advertising, anti-spam legislation and textile labelling. Peter Woolford of the Retail Council brought to our attention after meeting an intended change in the consent agreement held by Interac which would increase debit card transaction fees to retailers and therefore would increase consumer prices. I shared this information with the members of CCI and we agreed to follow it closely.

Association of International Automobile Manufacturers of Canada
At the request of David Adams, President of AIAMC, we met at his office to discuss corporate membership and consumer issues facing his association. We were joined by Mark Nantais, President of the Canadian Vehicle Manufacturers’ Association. We met for an hour and agreed to meet again to further discuss their relationship with the Council.

Sheridan College
Peggy Vickers of Sheridan College met with Christina and me over coffee to begin the discussion on the partnership role between the College, the Council and CSA on the Trillium project. We agreed to meet together at the end of the month to begin the project.

Lisa MacLeod
We met with Lisa MacLeod, Ontario MLA and Conservative Opposition Critic for the Ministry or Government and Consumer Services at her invitation. We discussed the Council and how important it was for the Council to be non-partisan. We expressed our belief that it was vital in policy making for the government and the opposition to discuss issues with the Council and get an independent consumer perspective. She was enthusiastic with the prospect and agreed to maintain contact and to meet whenever a consumer issue was brought to her or our attention.

April 4 2008

Frank Williams
We met with Frank Williams over lunch to bring him up-to-date on the changes at the Council. Williams is the Council consultant on the two-year OCA project on consumer protection. He brought us up-to-date on the project which he feels will be completed ahead of schedule in the fall.

Canadian Standards Association
Susan Winters, Manager, Consumer Services Program met with us at their offices to discuss the Trillium Project partnership. She agreed to meet with Peggy and Christina at the end of the month to begin the project.

Measurement Canada Membership and Project
Measurement Canada contacted me regarding the membership and project proposal. I was advised that there had been a delay in the start date of the consultation which involved the project proposal from May to October and that they would give us a response to our proposal later in the spring or early summer.

April 14 2008

Canadian Consumer Initiative (CCI)

CCI held a conference call on April 14 to lay out the plans for the Hill Blitz now scheduled for May 27-29. We have been invited to meet with the Competition Bureau on May 26 and will meet with OCA on May 28. I have invited Lucienne and Christina to the CCI meeting with OCA and to participate in the lobbying activities on May 28.

April 16 2008

Audit Committee

The Audit Committee met on April 16 to review the year end financials and make recommendations for the budget process for 2008-2009. We agreed to meet again on April 30 to review the contract with Christina and a budget for 2008-2009. The Committee will report with recommendations to the Executive and they in turn will report to the Board.


On other matters
I have received a three year appointment to the Stakeholder Advisory Council of the Canadian Payments Association and will attend my first meeting on April 29 in Toronto.

I have been invited as a civil society representative to the 2008 OECD Ministerial on the Future of the Internet in Seoul, Korea June 16-19 2008 and have accepted subject to funding by the Korean Government.

The Western Canada Advisory Committee will be meeting in Vancouver on April 30. Christina and I will join by conference call from Toronto.