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Cellphone retailers fail mystery shopping test, researchers plan to tell CRTC inquiry

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When Sean Grassie​, Kristianne Anor and Tara Hristov headed to cellphone retailers in the Ottawa area recently, they weren’t your average customers looking for a cellphone plan — they were University of Ottawa law students, on assignment as mystery shoppers.

Their mission? To test the consumer experience at the cellphone counter.

The students and the team’s co-leader will present their « frustrating » findings today in Gatineau, Que., at a week-long CRTC public hearing into misleading and aggressive sales practices by Canada’s telecom service providers.

The hearing is part of an inquiry the federal government ordered, after months of reporting on the issue by Go Public, which heard from more than 800 frustrated telecom customers and more than 200 current and former employees of the companies.

« The marketplace doesn’t work well for consumers, » says Mary Cavanagh, a professor at the University of Ottawa’s Centre for Law, Technology and Society, « and we think the government is abdicating their responsibility if they don’t deal with it. »

Mary Cavanagh co-led a mystery shopper study that found cellphone retailers gave ‘incomplete, unclear or misleading information’ when asked about service plans. (Submitted by Mary Cavanagh)

The mystery shoppers made 36 visits to six major cellphone retailers in Ottawa and Gatineau testing to see how much information they’d be provided about buying a cellphone and a service plan — such as price, data limits and cancellation fees — and whether they’d be given any written material to take away for review.

« People are not getting enough information to make an informed decision, » Cavanagh told Go Public.

‘No consistency’

The mystery shoppers began their research in the summer of 2016, visiting six major retailers to test what would happen when they inquired about purchasing a cellphone service plan. 

The shoppers visited two different locations for each retailer, armed with a checklist based on the Wireless Code — designed to empower and inform consumers.

They repeated that test in the summer of 2018, and added a second test — asking about buying a cellphone along with a service plan.

« We found virtually no consistency, » says Cavanagh, « in either the information topics covered, or in the quality of the information that was conveyed. »

Out of 36 visits, only once did an employee give clear, comprehensive and accurate information to the mystery shoppers.

The checklist

As soon as the mystery shoppers left each retailer — sometimes a store, sometimes a kiosk in a mall — they would fill out a 16-page checklist of over 100 questions.  

Here are some of the questions on the checklist:

  • Did the salesperson speak clearly?
  • Did the salesperson ask enough questions to identify your needs?
  • Did the salesperson explain overage charges?
  • Did the salesperson explain how a contract can be cancelled?
  • Did the salesperson discuss what would happen if the device was lost or stolen?

More than 50 per cent of the time, topics from the checklist were never mentioned, despite prompts by the shoppers themselves and employees from all six retailers repeatedly gave poor or incorrect information.

The burden should not be on the consumer to ask all the smart questions.– Mary  Cavanagh , university prof

« The information was completely lacking, » says Cavanagh. 

« You should be telling me about warranties. You should be telling me about extensions, about what happens after an offer terminates. The burden should not be on the consumer to ask all the smart questions. »

The group’s research findings also noted that there was « very little use of followup questions to put a customer’s needs into context, » that many of the interactions seemed « rushed even when they were the only customers in the kiosk » and that staff provided only « minimal responses » to questions.

Employees not helpful

Besides the checklist, the mystery shoppers made written observations about what happened, immediately after leaving a cellphone provider’s store or kiosk. 

In one instance, a mystery shopper noted, « When we asked for something in writing, she [the employee] said she did not have anything to give us and could not print from the computer, so she wrote out some basics on a sticky note and gave that to us. »

On another visit, an employee told a mystery shopper that they could « take a picture of a piece of paper on the wall, » that had some pertinent details.

One mystery shopper writes that another employee « just handed me the brochure and then stared at me after each question. »

‘Something in writing’ needed

Not one visit resulted in a mystery shopper leaving with detailed information in writing.

The research paper says the mystery shoppers « observed a consistent reluctance and/or explicit denial of requests for written information or documentation that a customer could take away with them. »

A team of researchers from the University of Ottawa discovered that retailers selling cellphone plans were reluctant to provide information in writing. (CBC)

« It’s completely unfair to consumers, » she says. « We know that people are very poor at retaining complex information that’s only delivered verbally. »

At the CRTC hearing, Cavanagh and her students will be urging the regulator to introduce rules making it mandatory for cellphone retailers to provide details in writing to potential customers.

« What are they [telcos] afraid of? » says Cavanagh. « What’s at risk for them in providing a more robust package of information? It’s needed to make what is called an informed decision. »

‘Hide the pamphlets’

Anuj Taxali says he was deliberately instructed not to help customers make an informed decision when he worked in a retail cellphone store several years ago.  

In his written submission to the CRTC — and in an earlier Go Public story — Taxali said that in 2014 he briefly worked at a Toronto cellphone store that was frequented by senior citizens.

Although they were just looking for a low cost « pay as you go » plan, Taxali writes that his manager « told us to hide the pamphlets » about that option. 

« She told us to instead sell these customers more expensive … plans with a large number of minutes and internet data, » writes Taxali, « even though we genuinely believed these plans were not the most appropriate option for such customers. »

Seniors struggle in retail stores

Taxali’s allegations are disturbing to Wanda Morris, vice-president of advocacy for CARP, a national advocacy association for people over age 50.

« That is such an unethical practice, » says Morris. « After working so hard to get less costly [cellphone] options for people that suit their needs, it’s hard to hear about people being misled. »

CARP is part of the Fair Communications Sales Coalition, a group that includes the National Pensioner Federation and the Public Interest Advocacy Centre (ACORN), which advocates for low income families.

Wanda Morris, of CARP, says older Canadians need written cellphone contract details that they are able to take home for review. (Submitted by Wanda Morris)

The coalition is also making a presentation to the CRTC today, arguing that Canadians are being misled and coerced into signing up for products and services that they knowingly would never have purchased.

« We’ve certainly heard from people that they don’t feel they’re getting the full story when they go into a store, » says Morris. « If they’re shown anything to read at all, they’re given print that’s too small to read. »

Mary Cavanagh is hoping the federal government is paying close attention to this week’s hearing.

« Is this the kind of marketplace that they really want to support? » asks Cavanagh. « Is this a competitive marketplace that also supports consumers? I would say so far, not very well. »

With files from Enza Uda

Submit your story ideas

Go Public is an investigative news segment on CBC-TV, radio and the web.

We tell your stories and hold the powers that be accountable.

We want to hear from people across the country with stories you want to make public.

Submit your story ideas at Go Public.

Follow @CBCGoPublic on Twitter.

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Anglais

Nostalgia and much more with Starburst XXXtreme

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Get a taste of adventure with Starburst XXXtreme based on the legendary NetEnt Game. The nostalgic themes are sure to capture fans of the classic version as they get treated to higher intensity, better visuals, and features. The most significant element of the game is its volatility. Patience will not be an essential virtue considering the insane gameplay, and there is a lot of win potential involved. It retains the original makeup of the previous game while adding a healthy dose of adrenaline. 

Starburst Visuals and Symbols

The game is definitely more conspicuous than before. The setting happens over a 5-reel, 3-row game grid with nine fixed win lines, which function if a succession from the left to the right reel is present. Only those players that that attain the highest win per bet line are paid. From a visual standpoint, the Starburst XXXtreme slots illustrates lightning effects behind the reels, which is not surprising as it is inherited from the original version. Available themes include Classic, Jewels, and Space. The game is also available in both desktop and mobile versions, which is advantageous for players considering the global pandemic. According to Techguide, American gamers are increasingly having more engaging gaming experiences to socialize to fill the gap of in-person interaction. Starburst XXXtreme allows them to fill the social void at a time when there is so much time to be had indoors. 

Starburst XXXTreme Features

Players get to alternate on three features which are Starburst Wilds, XXXtreme Spins, and Random Wilds. The first appears on reels 2,3, or 4. When these land, they expand to cover all positions while also calculating the wins. They are also locked for a respin. If a new one hits, it also becomes locked while awarding another respin. Starburst XXXtreme offers a choice between two scenarios for a higher stake. In one scenario with a ten times stake, the Starburst Wild is set on random on reels 2,3, or 4, and a multiplier starts the respin. The second scenario, which has a 95 times stake, starts with two guaranteed starburst wilds on reels 2,3, or 4. it also plays out using respin game sequence and features. The game also increases the potential with the Random Wilds feature to add Starburst Wilds to a vacant reel at the end of a spin. Every Starburst Wild gives a random multiplier with potential wins of x2, x3, x5, x10, x25, x50, x100, or even x150.

The new feature is sure to be a big hit with the gaming market as online gambling has shown significant growth during the lockdown. AdAge indicates the current casino customer base is an estimated one in five Americans, so Starburst XXXtreme’s additional features will achieve considerable popularity. 

What We Think About The Game

The gambling market has continued to diversify post-pandemic, so it is one of the most opportune times to release an online casino-based game. Thankfully Starburst XXXtreme features eye-catching visuals, including the jewels and space themes. These attract audience participation and make the gameplay inviting. The game also has a nostalgic edge. The previous NetEnt iteration featured similar visuals and gameplay, so the audience has some familiarity with it. The producers have revamped this version by tweaking the features to improve the volatility and engagement. 

That is characterized by the potential win cap of 200,000 times the bet. Starburst XXXtreme does not just give betting alternatives for players that want to go big. The increase of multipliers also provides a great experience. If the respins in the previous version were great, knowing that multipliers can go hundreds of times overtakes the game to a new level. 

Players should get excited about this offering. All of the features can be triggered within a single spin. Whether one plays the standard game or takes the XXXtreme spin route, it is possible to activate all of the features. Of course, the potential 200,000 times potential is a huge carrot. However, the bet size is probably going to be restricted and vary depending on the casino. It is also worth pointing out that a malfunction during the gameplay will void all of the payouts and progress. Overall, the game itself has been designed to provide a capped win of 200,000 times the original bet. 

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Anglais

‘We’re back’: Montreal festival promoters happy to return but looking to next year

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In downtown Montreal, it’s festival season.

In the city’s entertainment district, a musical act was conducting a sound check on stage Friday evening — the second day of the French-language version of the renowned Just For Laughs comedy festival. Tickets for many of the festival’s free outdoor shows — limited by COVID-19 regulations — were sold out.

Two blocks away, more than 100 people were watching an acoustic performance by the Isaac Neto Trio — part of the last weekend of the Festival International Nuits d’Afrique, a celebration of music from the African continent and the African diaspora.

With COVID-19 restrictions continuing to limit capacity, festival organizers say they’re glad to be back but looking forward to next year when they hope border restrictions and capacity limits won’t affect their plans.

Charles Décarie, Just For Laughs’ CEO and president, said this is a “transition year.”

“Even though we have major constraints from the public health group in Montreal, we’ve managed to design a festival that can navigate through those constraints,” Décarie said.

The French-language Juste pour rire festival began on July 15 and is followed by the English-language festival until July 31.

When planning began in February and March, Décarie said, organizers came up with a variety of scenarios for different crowd sizes, ranging from no spectators to 50 per cent of usual capacity.

“You’ve got to build scenarios,” he said. “You do have to plan a little bit more than usual because you have to have alternatives.”

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Anglais

MELS new major movie studio to be built in Montreal

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MONTREAL — MELS Studios will build a new film studio in Montreal, filling some of the gap in supply to meet the demand of Hollywood productions.

MELS president Martin Carrier said on Friday that MELS 4 studio construction will begin « as soon as possible », either in the fall or winter of next year. The studio could host productions as early as spring 2023.

The total investment for the project is $76 million, with the Quebec government contributing a $25 million loan. The project will create 110 jobs, according to the company.

The TVA Group subsidiary’s project will enable it to stand out « even more » internationally, according to Quebecor president and CEO Pierre Karl Péladeau. In the past, MELS Studios has hosted several major productions, including chapters of the X-Men franchise. The next Transformers movie is shooting this summer in Montreal.

Péladeau insisted that local cultural productions would also benefit from the new facility, adding that the studio ensures foreign revenues and to showcase talent and maintain an industry of Quebec producers.

STUDIO SHORTAGE

The film industry is cramped in Montreal.

According to a report published last May by the Bureau du cinéma et de la télévision du Québec (BCTQ), there is a shortage of nearly 400,000 square feet of studio space.

With the addition of MELS 4, which will be 160,000 square feet, the company is filling part of the gap.

Carrier admitted that he has had to turn down contracts because of the lack of space, representing missed opportunities of « tens of millions of dollars, not only for MELS, but also for the Quebec economy. »

« Montreal’s expertise is in high demand, » said Montreal Mayor Valérie Plante, who was present at the announcement.

She said she received great testimonials from « Netflix, Disney, HBO and company » during an economic mission to Los Angeles in 2019.

« What stands out is that they love Montreal because of its expertise, knowledge and beauty. We need more space, like MELS 4, » she said.

There is still not enough capacity in Quebec, acknowledged Minister of Finance, the Economy and Innovation Eric Girard.

« It is certain that the government is concerned about fairness and balance, so if other requests come in, we will study them with the same seriousness as we have studied this one, » he said.

Grandé Studios is the second-largest player in the industry. Last May, the company said it had expansion plans that should begin in 2022. Investissement Québec and Bell are minority shareholders in the company.

For its part, MELS will have 400,000 square feet of production space once MELS 4 is completed. The company employs 450 people in Quebec and offers a range of services including studio and equipment rentals, image and sound postproduction, visual effects and a virtual production platform.

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