Sept. 25 (Bloomberg) -- Canadian Prime Minister Stephen Harper said he'll allow telecommunications regulators to ban fees for unsolicited text messages on mobile phones and other ``unfair charges,'' to bolster consumer protection rules.

``We are obviously responding to a specific concern, which is the imposition of charges for unsolicited text messages,'' Harper told reporters today in Victoria, British Columbia. ``We think this is completely unfair to consumers; completely unwarranted.''

BCE Inc., Canada's biggest telephone company, and Telus Corp., the second-biggest, last month started charging wireless customers for each text message they receive. Rogers Communications Inc., Canada's largest wireless carrier, doesn't charge for this. Bell and Telus give credit to customers who get so-called ``spam'' messages.

Harper, under pressure from opposition parties for more oversight over fees charged by banks and phone companies and ``price gouging'' by oil retailers, has made consumer protection a central part of his campaign for the Oct. 14 elections.

A ban on unsolicited commercial text messages is unnecessary because the industry has already addressed the issue, said Marc Choma, a spokesman for the Ottawa-based Canadian Wireless Telecommunications Association.

``Cell-phone spam in Canada really is non-existent,'' Choma said.

Gas Retailers

Harper also pledged tougher fines on gasoline retailers that overcharge customers, higher penalties for price fixing and false advertising, and a crackdown on Internet ``spam'' e-mail. Last week, he promised new regulations to make it harder for cigarette makers to market their products to children.

The Canadian Radio-television and Telecommunications Commission would also be empowered to block ``unfair charges'' in the future, and the country's telecommunications act will be amended to create a ``code of conduct'' for wireless services, Harper said.

``We are a party that believes in free enterprise, free trade and free markets,'' Harper said. ``But they do not absolve government from obligations to the population, including the obligation to draw the line when the rights and interests of Canadian consumers need protection.''

Harper also said this ``is not the time to move forward'' on loosening ownership restrictions in the telecommunications industry, as recommended by a government-appointed competition panel in June. Harper said that may lead to Canadians losing control of the industry.

More Competition

The panel recommended non-residents be allowed to set up phone companies or acquire firms with less than 10 percent of market share. After five years, the telecommunications sector could then be further liberalized in a way that is ``competitively neutral'' to Canadian companies, according to its recommendations.

``We do need at some point to open up this market to ensure that we have good consumer competition, but we want to do so in a way that the Canadian marketplace, the Canadian industry, is prepared for it so it doesn't just all get bought out by foreign companies,'' Harper said.

Harper said Canada's economy has slowed, but it's faring better than other economies during a global credit crunch.

``This will continue to be a slow and intense and somewhat difficult period,'' Harper said. ``I think we will be fine, not great, but fine, as long as we don't do stupid things.''

A message left with the BCE media office wasn't returned.

To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net; Theophilos Argitis in Victoria, British Columbia at 2889 or targitis@bloomberg.net.

Last Updated: September 25, 2008 16:03 EDT