Friday, June 19, 2026
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Canada Bans Certain Phone and Internet Switching Fees

TORONTO, June 19, 2026 – Starting June 12, the Canadian Radio-television and Telecommunications Commission introduced new consumer protection rules prohibiting telecommunications providers from charging eligible cellphone and home internet customers fees for activating or changing service plans. Providers are also prohibited from charging early cancellation fees for wireless contracts that do not include a subsidized device. Families and small business customers planning to switch providers, change plans or cancel service should still check device balances, installation charges and optional service fees, as their final bills may remain higher than expected.

The prohibited charges are fees imposed for activating a new retail telecommunications plan or modifying an existing plan. In the past, when several members of one household switched cellphone plans at the same time, activation fees could be charged for each line, increasing the cost of moving to another provider. Under the new rules, providers can no longer charge these fees simply for activating or changing a plan.

However, the new rules do not eliminate every related charge. Telecommunications providers may still charge reasonable fees for physical internet installation work inside a customer’s home, such as sending a technician to install wiring. Customers may also continue to be charged for optional equipment, home Wi-Fi setup or other services they choose, but providers should disclose the costs before customers agree.

The rules for cancelling a wireless contract early also vary depending on the device arrangement. If the contract does not include a subsidized phone, the provider can no longer charge an early cancellation fee. However, customers who received a device subsidy or are paying for a phone through financing or a leasing arrangement may still need to pay the outstanding device balance. Customers leasing phones may also need to return the device according to the contract or pay a final amount to keep it.

Switching to another provider after seeing a lower-priced plan does not necessarily mean the old account has been fully settled. Customers should first ask their current provider for information about the remaining device balance, requirements for returning leased equipment and the final bill. They should also confirm deadlines for returning internet modems, routers or other rented equipment.

The new rules apply to individual and small business customers of all wireless service providers. They also apply to individual home internet customers covered by the Internet Code. Device financing, leasing and installation arrangements may still differ among providers, and banning switching-related fees does not automatically invalidate every additional charge.

Newcomers and seniors who have difficulty reading English-language contracts should ask providers to provide written details of monthly charges, device balances, installation fees and one-time charges before changing plans. They should not rely only on verbal explanations from telephone sales representatives. After arranging service by phone or online, customers should also keep confirmation emails, chat records, order numbers and proof that equipment was returned.

If a bill still includes an activation fee, plan modification fee, or an early cancellation fee for a contract without a subsidized device, customers should first contact the provider to request an explanation and correction, and keep the complaint reference number. If the problem cannot be resolved, they may submit a complaint to the Commission for Complaints for Telecom-television Services.

The CRTC is also consulting the public on consolidating the consumer codes for wireless, internet, home telephone and television services. The consultation deadline is August 11. Submitted comments will become part of the public record, and residents can raise concerns about unclear bills, device charges and problems encountered when cancelling services.(LJI by Yuanyuan)

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