CRTC agrees that industry can self-regulate itself when it comes to short codes

On 21 January 2009, the CRTC received an application by l’Union des consommateurs (l’Union) requesting the Commission to intervene in the wireless services market to regulate billing of text messages from short codes – which is what marketers use for SMS / mobile marketing campaigns.

Based on the filings by Canadian Wireless Telecommunications Association (CWTA) and members, the Commission has denied the application.

“In this decision, the Commission denies the application by l’Union des consommateurs requesting the Commission to intervene in the wireless services market to regulate billing of text messages from short codes.”

In concluding, the Commission affirmed CWTA’s position, namely:

1. The Commission considers that the evidence presented by l’Union does not lead to the conclusion that market forces have systematically failed to resolve complaints about billing of text messages from short codes.
2. The Commission is of the view that it can rely on market forces,(2) including industry self-regulation through the mechanisms put in place by the CWTA and the CCTS, to resolve complaints about billing of text messages from short codes.

Full text of the Decision is available at http://www.crtc.gc.ca/eng/archive/2009/2009-445.htm

This is good news for mobile marketers who rely on SMS as part of their marketing efforts. Having the CRTC step in & regulate short codes would have likely slowed down and further complicated a process that is already perceived to be complex.