Canadians can cancel phone contracts without penalty after two years under new wireless code

Date:

Key provisions of Canada’s new wireless code

The following provisions will have national application and come into force Dec. 2, 2013:

  • Cellphone providers must unlock unsubsidized handsets immediately and no later than 90 days after the start of a contract for subsidized devices if requested. Carriers may still charge a fee for the service, which allows customers to use their handsets on competitors’ networks.
  • Contracts must be written in plain language, set out prices clearly and indicate whether those rates include taxes.
  • Once a contract for postpaid wireless service is signed, the provider must provide a permanent copy of the contract (on paper unless otherwise agreed) and must include a “critical information summary”.
  • Providers must notify customers when they are roaming in another country and, unless the consumer specifically directs otherwise, must suspend both international and national roaming services once they reach $100.
  • Similarly, carriers must cap overage fees related to mobile data charges at $50 per month unless the customer explicitly agrees to pay the additional charges.
  • The code did not include caps on overages for voice or text usage.
  • Cancellation is effective the day a consumer notifies their provider of their intention to terminate service.
  • Providers of prepaid services must keep account balances open for seven days following the expiration of an activated card to allow time for the consumer to “top-up” their service and retain that balance, however, the CRTC did not mandate that prepaid account balances never expire.

Read full article here.

Christine Dobby – Financial Post – June 3, 2013.

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