Consumer groups can appeal CRTC phone overpayment ruling

Consumers can appeal a CRTC decision to not refund up to $650 million in overpayments to telephone customers, the Federal Court of Appeal has ruled.

"We are pleased to have a chance to convince the court the money should be returned to consumers," said Michael Janigan, general counsel for the Public Interest Advocacy Centre, which represented the consumer groups in the proceeding Monday.

In February, instead of giving refunds to customers, theCanadian Radio-television and Telecommunications Commissiondecided that the major telephone companies could use money, raised by overbilling for local phone service, for projects such as expanding broadband capacity in rural and remote communities.

The following month, consumer groups such as the National Anti-Poverty Organization (NAPO) and the Consumers Association of Canada (CAC) sought leave to appeal the decision.

The companies overcharged customers across the country about $50 each, which now adds up to $650 million. The overpayments came as a result of a 2002 effort by the CRTC to encourage competition in the local phone services market by making rates high enough to attract new companies.

These newcomers would be able to come in and underprice existing services, encouraging competition and allowing customers to get lower rates.

The consumer groups will file the appeal documents with the Federal Court of Appeal. A hearing and decision are expected next year.