Wireless code takes effect

You’re covered.

As of today, for all new or amended wireless service contracts, Canadian wireless carriers have to comply with the Wireless Code, released 6 months ago by the CRTC [original press release, Wireless Code Regulatory Policy, CRTC information page].

According to the Commission:

The Wireless Code will

  1. make it easier for individual and small business customers to obtain and understand the information in their wireless service contracts;
  2. establish consumer-friendly business practices for the wireless service industry where necessary; and
  3. contribute to a more dynamic wireless market.

Many carriers had already started to implement parts of the code over the summer; I haven’t seen 3-year terms for smartphones since before the back-to-school sales began.

Consumers rights are set out in the original decision:

Your Rights as a Wireless Consumer

The CRTC’s Wireless Code comes into effect on 2 December 2013. The Wireless Code establishes basic rights for all wireless consumers and puts new requirements on service providers. The Wireless Code significantly limits cancellation fees and requires your service provider to unlock phones, to offer a trial period for wireless contracts, and to set default caps on data charges to help you avoid bill shock.

Do you know your rights? This checklist will help you to understand the most important things that the Code does for you. For more information, visit the CRTC’s website at www.crtc.gc.ca/eng/info_sht/t14.htm [website corrected], where you can find the Wireless Code, which explains all of your rights as a wireless consumer in greater detail.

Do you pay a bill after you use your wireless service? If so, you use postpaid services, and you have the right
□ to cancel your contract at no cost after a maximum of two years
□ to cancel your contract and return your phone at no cost, within 15 days and specific usage limits, if you are unhappy with your service
□ to have your phone unlocked after 90 days, or immediately if you paid in full for your phone
□ to have your service suspended at no cost if your phone is lost or stolen
□ to receive a Critical Information Summary, which explains your contract in under two pages
□ to receive a notification when you are roaming in a different country, telling you what the rates are for voice services, text messages, and data usage
□ to limit your data overage charges to $50 a month and your data roaming charges to $100 a month
□ to pay no extra charges for a service described as “unlimited”
□ to refuse a change to the key terms and conditions of your contract, including the services in your contract, the price for those services, and the duration of your contract
Your contract must
□ use in plain language and clearly describe the services you will receive
□ include information on when and why you may be charged extra

Do you pay before you use your wireless service? If so, you use prepaid services, and you have the right
□ to cancel your contract at no cost after a maximum of two years
□ to cancel your contract and return your phone at no cost, within 15 days and specific usage limits, if you are unhappy with your service
□ to have your phone unlocked after 90 days, or immediately if you paid in full for your phone
□ to have your service suspended at no cost if your phone is lost or stolen
□ to receive a notification when you are roaming in a different country, telling you what the rates are for voice services, text messages, and data usage
□ to a minimum seven-day grace period in order to “top up” your prepaid card account and retain your balance
Your contract must
□ use plain language
□ clearly describe the conditions that apply to your prepaid balance and how you can check your balance

The courts are reviewing a challenge from some of the carriers over a provision in the Wireless Code that would have the code apply (as of June 3, 2015), to all Canadian wireless customers. As I described when the Code was released, this provision (in paragraph 369) creates a problem that may be retroactive rate setting – a power that the CRTC does not have. The carrier concern deals with recovery of the phone subsidy in the case of early contract termination by customers who bought phones on 3-year agreements over the past year or so.

Note: Wireless customers in Saskatchewan will not have the benefits of the international data roaming and data cap provisions of the Wireless Code until June 2014, due to an inability to accelerate implementation of a replacement billing system.

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