Liberals aim to help wireless customers experiencing “cell shock”
Posted Apr 12, 2012 03:33:41 PM.
This article is more than 5 years old.
TORONTO, Ont. – The Ontario government believes too many people are experiencing “cell shock” when they open their cell or smartphone bills, finding unexpected and often hefty charges.
Consumer services minister Margarett Best said wireless contracts are being changed without the consumer’s knowledge and new charges are only being discovered when the bill arrives.
“Our government’s goal is to provide greater clarity and fairness,” she said, Thursday.
Liberal backbencher David Orazietti said despite what Ottawa says, there’s not enough competition in Canada’s wireless industry. As a result, the provincial government is promising legislation to crack down on gouging by providers.
The new legislation will require that contracts for wireless services be written in plain language and spell out exactly which services come with a basic fee and which ones will cost more.
“The cancellation fees are grossly excessive. The automatic renewal features that are imposed on consumers are unfair and biased,” Orazietti explained.
Under the new law, customers would have the opportunity to successfully fight extra fees to get their money back, something he labels “the mechanism of triple recovery of fees if the consumer is forced to take action.”
Wireless providers will also have to put a cap on the cost of cancelling a contract and charge only what the government calls a “modest fee” for walking away from mixed-term contracts.
