Manitoba to see better consumer protection with cell phone contracts

Have you ever signed a phone contract for a certain incentive, say, unlimited texting to the U.S., and then shortly after your wireless service provider discontinues the feature? Then when you complain they tell you they reserve the right to change the terms? Then on top of that, you're told you can’t leave the contract without paying a hefty cancellation fee? Well, if you live in Manitoba, you won’t be seeing these problems anymore.

Have you ever signed a phone contract for a certain incentive, say, unlimited texting to the U.S., and then shortly after your wireless service provider discontinues the feature? Then when you complain they tell you they reserve the right to change the terms? Then on top of that, you're told you can’t leave the contract without paying a hefty cancellation fee?

Well, if you live in Manitoba, you won’t be seeing these problems anymore.

Manitobans will see greater fairness in cell phone contracts thanks to the province’s Let’s Make a Better Deal strategy. Based on approximately 250 consumer and industry responses, the proposed new rules will reflect its citizens’ needs for greater consumer protection and solutions to their concerns regarding one-sided contract terms and changes and frustrations with high cancellation fees and hidden fees.

The new legislation under Manitoba’s Five-Year Plan for Stronger Consumer Protection will:

• allow cell phone customers to cancel contracts before the end of term;
• prohibit unreasonable cancellation fees, while allowing cost recovery for equipment provided or subsidized as a contract incentive;
• stop charges for service that can’t be accessed due to damaged or defective equipment, unless the customer is responsible;
• end unilateral amendments to a material element of a contract if the change doesn’t benefit the customer;
• require the minimum monthly cost to be included in advertisements;
• require companies to fully disclose and explain all charges and terms; and
• limit automatic contract renewals.

“We are pleased these changes will help ensure contracts are fair and consumers are protected, while also supporting competition in the cell phone industry," expressed Gloria Desorcy, executive director of the Consumers` Association of Canada (Manitoba).

Quebec is the only other province benefiting from a similar legislation. In order to strengthen consumer protection for all Canadian citizens, the CRTC needs to follow by example and recognize the need for greater consumer protection in Canada and implement a public interest mandate.

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Read more about Manitoba's Five-Year Plan.

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