Bill forces companies to disclose average download speeds

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OTTAWA — A lawmaker's bill to ensure more truth in advertising for internet plans has passed both the House of Commons and the Senate and is on its way to becoming law.

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Bill C-288, introduced by Conservative MP Dan Mazier, would require the CRTC to require internet companies to disclose not only the maximum speeds but also the average download and upload speeds of an internet plan in their advertising, and to require them to disclose speeds during peak demand times as well.

The bill, first introduced in 2022, now only requires royal assent, which is expected soon. Once enacted, the CRTC would have to hold hearings with the public and industry on new advertising standards.

Mazier said the current system allows companies to sell consumers download and upload speeds that are advertised as top speeds. For example, the service may offer downloads of up to 50 megabytes per second, but speeds that high are rarely achieved.

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“We realized that currently, internet companies or internet service providers are allowed to sell speed or theoretical speed, and that didn't sit well with us,” he said. “There is no other industry in Canada that could sell a consumer a product like that.”

He said the pandemic has put significant pressure on home internet and slowed down congested networks.

“Many of these internet companies can't keep up with demand, so they're overbooked. Then they have to control what's happening and manage the system, so they slow everything down,” he said.

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Scott Hutton, a CRTC official, has previously said the regulator wants to establish uniform disclosure standards so Canadians know what they are buying. He said the CRTC has made similar efforts, but the bill would help get the job done.

“We want to look at how to measure quality of service and typical download and upload speeds during peak periods. We want to make sure Canadians can compare apples to apples when purchasing internet service,” he told senators who considered the bill last month.

Hutton said the CRTC hopes that introducing clearly measurable standards will also reduce costs for consumers.

“This will have a positive impact on prices by providing Canadians with clear, accurate and concise information that will enable them to shop, compare and contrast the available offers to make those decisions.”

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Mazier's bill passed the House and Senate relatively unchanged, receiving unanimous support in both chambers. Bills introduced by lawmakers rarely become law, but are usually shelved for government business.

Mazier expressed his joy that the law had passed without any problems.

“It’s a really good example of what a bill from a member of parliament can do,” he said.

National Post
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