WINNIPEG – The Manitoba government has introduced a new law designed to simplify cell phone contracts in the province.
Family Services and Consumer Affairs Minister Gord Mackintosh tabled the new legislation on Monday which will come in to force next year. Based on approximately 250 consumer and industry responses to a discussion paper released late last year, the new rules will include the following seven protections:
– 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.
“Manitobans have told us they are frustrated by high cancellation fees, unilateral changes to contract terms and prices, hidden charges and complex and unclear contracts,” Mackintosh said in a statement. “They have asked for greater fairness and the ability to make informed choices and this legislation will make that happen.”
The Consumer Protection Office would monitor industry practices to ensure compliance. Failure to comply with the rules could result in financial penalties ranging from $1,000 to $5,000 per breach, and businesses could also be charged and subject to fines up to a maximum of $300,000.
Québec is currently the only other Canadian province with legislation on cell phones.
