TORONTO – Ontario is following Quebec and Manitoba’s lead to simplify cell phone contracts for consumers.
The provincial government said Thursday that it is introducing legislation to make it easier to understand the costs and terms of wireless services agreements, while ensuring that service providers are upfront with information before contracts are signed.
The Wireless Services Agreement Act, 2012 will allow consumers to cancel agreements at any time, with limits on cancellation changes; require the express consent of the consumer to renew, extend or amend a contract; require greater disclosure and clarity in contracts for wireless services; and introduce all-inclusive price advertising for service plans.
The proposed legislation, which would affect new contracts, would take effect six months after being passed. It would also cover existing agreements that are amended, renewed or extended after that date.
"We want to eliminate the 'cell shock' many people experience because the terms of their agreements lack clarity”, said minister of consumer services, Margarett Best, in a statement. “Service providers should give people the information they need so they understand the terms, and all costs of any cell phone and wireless services agreements they sign."
Approximately 77% of Ontarians subscribe to wireless plans. Complaints about wireless carriers comprised 62% of the complaints received by the federal Commissioner for Complaints for Telecommunications Services (CCTS), according to its latest report, and Ontario accounted for 41.4% of all complaints.
The Public Interest Advocacy Centre (PIAC) welcomed the legislation, noting that it responds to growing “public sentiment that the terms of customer arrangements for mobile service have been skewed against the consumer”.
“We want a thriving rivalry in the wireless market, not one where customers are locked into plans and contracts that no longer serve their needs and are one-sided in favour of the provider”, said executive director and general counsel Michael Janigan, in a statement.
New wireless entrant Mobilicity, which has been vocal about the need for such legislation, encouraged other provincial governments to follow suit.
“Carrier codes governed by the Canadian Wireless Telecommunications Association (CWTA) have proven ineffective in protecting consumers and seem to act in the best interests of the Big 3, not Canadians”, said president and chief operating officer Stewart Lyons, in a statement. “Ontario is definitely on the right track and we hope other provinces will keep the trend going until all consumers from coast-to-coast get the protection they deserve.”
– Lesley Hunter
