Canada’s telecommunications regulator has announced that it will prohibit companies from imposing charges on customers for cancelling, changing, or activating plans. The Canadian Radio-television and Telecommunications Commission (CRTC) aims to facilitate the process for consumers to switch internet and cellphone plans, enabling them to take advantage of better offers without unexpected costs. These new regulations are set to take effect on June 12.
In addition to this change, the CRTC plans to introduce more consumer protection measures in the upcoming months to streamline the process of shopping for, comparing, and selecting plans. The commission initiated consultations in late 2024 to empower cellphone and internet users, seeking input on potential modifications concerning notifications, self-service options, and fees.
To prevent bill shocks, the CRTC is evaluating strategies to notify customers when their plans or discounts are nearing expiration. The commission is also exploring self-service alternatives to facilitate plan changes or cancellations for customers.
These proposals arose following amendments to the Telecommunications Act by the federal government, mandating the implementation of new consumer protection measures by the CRTC. Vicky Eatrides, the Chairperson and CEO of CRTC, emphasized the importance of empowering Canadians with more control over their internet and cellphone services. She highlighted that eliminating additional fees for plan activation, changes, or cancellations allows consumers to switch to better deals without incurring extra costs.
Separately, the CRTC is deliberating whether service providers should be mandated to present specific information about home internet plans, such as price and speed, through a standardized label format. This concept, akin to food nutrition labels in grocery stores, aims to enhance consumer understanding when selecting home internet plans.
The CRTC held a hearing on this proposal in June, where experts argued that standardized labels could improve consumer literacy in the home internet plan market. The commission also plans to conduct a public consultation to review consumer protection codes, including the Internet Code and the Wireless Code, with the objective of simplifying and consolidating them into a single code.