The CRTC caps the termination costs of wireless phones

In its decision of March 4, 2020, the CRTC specifies that the code on wireless services applies to all the financing plans for aircraft sold with a wireless service package, including plans for 36 months and more.Until now, the code has not applied in terms of more than 36 months.

"Device financing plans must comply with all protection measures provided for by the Wireless Services Code in order to guarantee that consumers are duly protected," said the organization in a press release.

No costs after 24 months

The Wireless Services Code was created in 2017 by the CRTC so that it is easier for consumers to avoid surprise invoices, to obtain information on their contracts from their supplier and to ensure thattheir supplier respects their rights and responsibilities.It requires that early termination costs be reduced to zero in the space of 24 months.On the other hand, if you decide to put an end to your contract during this period, costs may be invoiced, according to formulas specified in the code.

However, the CRTC noted that the cap of termination costs after 24 months of cell phone contracts was not always respected by certain suppliers.

Since 2019, the main mobile operators have offered packages that separate payments for mobile phones from monthly service costs, which has the effect of lengthening the duration of the contract beyond the period of the service plan, whichis generally 24 months.

The CRTC says it has noted that if the wireless service plan ended after two years, but that the payment terms of the new device ended after three years, the difference of one year could be expensive for consumerswho wanted to change the package or an operator.

"One of the fundamental principles of the Code on Wireless Services is the capacity of customers to take advantage of competitive offers on the market.We want to ensure that the financing plans of devices cannot be used to maintain customers with their current supplier at the end of their service contract, "said CRTC president Ian Scott.

About fifty complaints per year

The Consumer Protection Office says it receives around fifty complaints each year relating to the termination costs in cell phone."This number is relatively stable for the last three years," said the manager of strategic partnerships and media relations at the OPC, Charles Tanguay.

A month to comply

Wireless service providers will have a month to update their contracts and documents and train their staff accordingly of this decision.

The CRTC requests the Commission of Complaints relating to telecom-television services (CPRST) to separate the monitoring of complaints relating to the financing plans of devices.

According to the CRTC communications surveillance report, subscribers with 5 GB wireless packages paid an average of $ 48.82 in 2019, a fall compared to 2016 where the average monthly price of a similar package was 77, $ 47.

In 2018, the CRTC ordered wireless service providers to offer mobile wireless service packages with data only at lower cost and encouraged them to continue to improve their offers to meet the needs and expectations of consumers,especially for low -income households.

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