Canada’s telecommunications regulator has announced new rules to prevent companies from charging customers fees when they cancel, change, or activate plans. The Canadian Radio-television and Telecommunications Commission (CRTC) aims to facilitate consumer choice by eliminating unexpected costs associated with switching internet and cellphone plans. These regulations will take effect on June 12, with additional consumer protection measures expected to be introduced soon to enhance the process of selecting and comparing plans.
In late 2024, the CRTC initiated consultations to empower cellphone and internet users, focusing on feedback regarding notifications, self-serve options, and fees. The commission is exploring strategies to ensure customers are informed about plan expirations, thus avoiding billing surprises. Moreover, potential self-serve tools are being considered to simplify plan changes or cancellations.
The CRTC’s actions were prompted by amendments to the Telecommunications Act by the federal government, mandating the implementation of new consumer protection measures. Vicky Eatrides, Chairperson and CEO of the CRTC, emphasized the significance of granting Canadians more control over their telecommunications services. Eliminating extra charges for plan adjustments enables consumers to switch to more suitable deals without financial barriers.
Additionally, the CRTC is contemplating the introduction of standardized labels for home internet plans, akin to food nutrition labels, to enhance consumer understanding of pricing and speed information. A public hearing held last June discussed the potential benefits of this approach in improving consumer literacy when evaluating home internet options.
In a separate initiative, the CRTC is reviewing consumer protection codes, including the Internet Code and the Wireless Code, with the intention of streamlining and consolidating them into a unified code. This move aligns with the regulator’s commitment to enhancing transparency and accessibility within the telecommunications industry.
While the United States’ Federal Communications Commission previously mandated standardized labels for internet providers to disclose cost and performance details, some Canadian telecom industry representatives questioned the efficacy of such requirements in benefiting consumers. These industry stakeholders argued that they already provide essential information to customers during the plan selection process.
The CRTC is set to conduct another public consultation to assess and potentially revise its consumer protection frameworks, signaling ongoing efforts to adapt regulations for the benefit of Canadian telecom consumers.