Ontario Hopes to Halt Cellphone Price Gouging

Ontario’s provincial government is stepping up to protect consumers with legislation to put the kibosh on exorbitant cellphone contract cancellation fees. Many Canadians have experienced “cell shock” at one point – the phrase coined to describe the horror of opening a bill from your cellphone carrier. Despite the shock, once consumers are locked into a fixed-term contract, we practically have to sell our first born to get out of the contract (some companies charge upward of $400 to $600 in cancellation fees).

Ontario’s provincial government is stepping up to protect consumers with legislation to put the kibosh on exorbitant cellphone contract cancellation fees.

Many Canadians have experienced “cell shock” at one point – the phrase coined to describe the horror of opening a bill from your cellphone carrier. Despite the shock, once consumers are locked into a fixed-term contract, we practically have to sell our first born to get out of the contract (some companies charge upward of $400 to $600 in cancellation fees).

Fortunately, fed-up customers could soon cut off overpriced carriers without incurring excessive charges. The Ontario government has pieced together legislation allowing customers to break their cellphone contracts at any time, even if the fixed term hasn’t expired.

The legislation also caps the cost of cancellation fees to a measly $50, which is next to nothing compared to the hundreds of dollars some carriers charge for cancelling their services. Titled the Wireless Services Agreement Act, the bill would also force companies to pare down the legalese included in wireless contracts.

If the act passes, Ontario will follow in the footsteps of two other provinces – Quebec and Manitoba – that have passed or posed similar legislation. Considering the ridiculous cost attached to carrying a cellphone in Canada, B.C. consumers should push for similar legislation in our province.

I know the moment B.C. adopts similar legislation, I plan to wriggle out of the contract that’s acted as an iron vice on my wallet the last two years. And I’m betting I won’t be the only one.