Consumer Issues with lnternet Service: Is Industry Self-Regulation Working?

Organization

Public Interest Advocacy Centre (PIAC)

Published

2004

Summary

This report highlights problems with consumer protection for customers of internet services. A survey conducted as part of the study found that almost two thirds of consumers think that the government should develop and enforce consumer protection rules. In particular, sixty-two percent of customers thought it was very important for the government to develop rules with respect to quality of service. The study reviewed the current mechanisms for self regulation and the handling of customer complaints and finds them wanting. It concludes that consumer problems such as spam, service outages and delays, and billing complaints are handled by individual internet service providers (ISPs) in ways which are frequently not transparent or standardized. ISP practices may create an imbalance in service arrangements to the customer's disadvantage. The PIAC report also warns that the high level of concentration in the high speed Internet market, dominated by two suppliers, cable and local telephone companies, bodes ill for future internet consumer welfare. The report recommends action first by the ISPs themselves to more effectively deal with consumer problems by implementing more effective self regulation through a number of models currently available. Failing such initiative, the report finds public support for appropriate regulatory intervention.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database