Canada’s telecommunications regulator will prohibit internet and cellphone providers from charging fees when customers cancel contracts, switch plans, or activate new service, a move intended to increase competition and lower costs for consumers. The Canadian Radio-television and Telecommunications Commission (CRTC) announced the decision on Thursday, with the new rules taking effect on June 12.
The CRTC’s action follows changes to the Telecommunications Act that mandated the regulator to implement new consumer protections. According to CRTC Chairperson and CEO Vicky Eatrides, the decision “removes extra fees to activate, change or cancel a plan,” allowing customers to “switch to a better deal without having to pay extra just to obtain the service that works best for them.”
The elimination of these fees, which have reportedly reached as high as $80 in some cases, is expected to collectively cost telecommunications companies millions of dollars, according to industry analysts. While companies will still be permitted to charge “reasonable” fees for costs like physical installation or explicitly chosen add-on products, charges designed to discourage customers from changing providers will be banned.
The CRTC initiated a series of consultations in late 2024 to gather feedback on potential changes related to notifications, self-serve options, and fees, responding to growing consumer frustration with restrictive contracts and unexpected costs. The regulator as well plans to launch a further public consultation to review and simplify its consumer protection codes, potentially combining the Internet Code and the Wireless Code into a single, more streamlined document.
The decision comes amid a broader trend of increased scrutiny of the Canadian telecommunications industry. Telecom complaints surged 17% between 2024 and 2025, with billing issues being the most frequent grievance, according to Canada’s telecom watchdog. The CRTC has also recently introduced rules requiring companies to report and explain the causes of service outages.
In the United States, the Federal Communications Commission (FCC) began requiring internet providers to display standardized labels detailing cost and performance information in 2024, a move the CRTC is now considering mirroring with a similar “nutrition label” approach for home internet plans. However, some Canadian telecom representatives have questioned the effectiveness of the U.S. Model, asserting they already provide sufficient information to customers.
The CRTC has not yet announced a timeline for the completion of the review of its consumer protection codes, but has indicated that further consumer protection measures are forthcoming in the coming months.
