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Feds plan to stop carriers from charging customers fees to switch providers

The rule is one of many planned changes to the Telecommunications Act outlined in the 2024 budget

Connection fee discount listed on a carrier website

The federal government released its 2024 budget on Tuesday with billions in new spending, but one pledge in the budget aims to save Canadians next time they want to switch cellphone providers.

The 2024 budget outlines the government’s plan to amend the Telecommunications Act to accomplish a few goals, including prohibiting carriers “from charging consumers extra fees to switch carriers.”

It remains to be seen how this will play out in practice, but it could mean the end of annoying connection fees that most Canadian carriers charge when a customer signs up with them. These costs have ballooned in recent years, with some providers charging fees as high as $60.

However, many also offer to waive connection fees for certain types of purchases, such as online orders.

Along with the fees for switching carriers, the budget mentions other plans for amending the Telecommunications Act. This includes requiring carriers to help customers find plans, including lower-cost options, before their contract ends.

The planned amendments also include requiring carriers to “provide a self-service option, such as an online portal, for customers to easily switch between or end plans with a provider.” Notably, most wireless providers in Canada already offer an online portal.

Finally, the Canadian Radio-television and Telecommunications Commission (CRTC) will be responsible for implementing the new measures.

Source: Budget 2024 Via: Toronto Star

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