Independent media needs you. Join the Tyee.

The Hook: Political news, freshly caught

New rules let customers cancel phone contracts without penalty after two years

Wireless customers will be able to cancel their cellphone contracts after two years without any penalties -- even if they've signed up for longer terms -- under a new set of rules unveiled Monday by the federal telecom regulator.

However, the Canadian Radio-television and Telecommunications Commission didn't go as far as an outright ban on the three-year contracts that Canadians vented so much about earlier this year as the national code for wireless services was being drafted.

"We didn't focus on the length of the contract, we focused on the economic relation," CRTC chairman Jean-Pierre Blais said in an interview.

"So, in effect, it's equivalent to those asking for a ban of three-year contract without us actually banning three-year contracts, because what we're saying is the contract's amortization period can only be for a maximum period of 24 months."

In the lead-up to public hearings held earlier this year, the CRTC said it heard a lot of angry comments about three-year contracts.

The regulator also had a backer in the federal Competition Bureau, which supports measures to limit contract length.

"What we were concerned about was ensuring that there was a dynamic marketplace, that is, that people didn't feel entrapped in their contracts when they want to maybe use the offer of a new entrant or a competitor across the street," Blais said.

"So it really is about freeing up Canadians to choose either stay with their current carrier, under renegotiated terms, or go to a competitor."

A consumer group welcomed the new code.

"The wireless code has rules to help wireless customers where it counts -- the bottom line," John Lawford of the Public Interest Advocacy Centre said in a statement.

"It also makes it easier to switch companies because those costs are limited and are clear."

Wireless carriers Telus, Rogers and Bell were not immediately available for comment.

The ability to walk away scot free from a wireless agreement after two years is one of several provisions aimed at appeasing consumers in the CRTC's new set of national standards for the content and clarity of cellphone contracts.

The CRTC is also capping extra data charges at $50 per month and international data roaming charges at $100 per month to avoid huge, surprise bills.

The regulator will require providers to allow customers to unlock their devices after 90 days, or immediately if they pay the full amount of the device.

Customers will be allowed to return their cellphones within 15 days and specified usage limits if they're unhappy with their service, and they will also be able to accept or decline any changes to two-year contracts.

The regulator is also requiring companies to produce contracts that are easy to read and understand.

The code, which all service providers in Canada will have to abide by, will apply to new wireless contracts starting Dec. 2.

Steve Rennie reports for the Canadian Press.

Find more in:

What have we missed? What do you think? We want to know. Comment below. Keep in mind:

Do:

  • Verify facts, debunk rumours
  • Add context and background
  • Spot typos and logical fallacies
  • Highlight reporting blind spots
  • Ignore trolls
  • Treat all with respect and curiosity
  • Connect with each other

Do not:

  • Use sexist, classist, racist or homophobic language
  • Libel or defame
  • Bully or troll
  • Troll patrol. Instead, flag suspect activity.
comments powered by Disqus