New rule lets Canadians cancel wireless contracts after two years

Mon Jun 3, 2013 9:31am EDT
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OTTAWA, June 3 (Reuters) - Canadians will be able to cancel their cellphone contracts after two years without penalty under a mandatory wireless code announced by the country's telecom watchdog on Monday.

The new code, drafted by the Canadian Radio-television and Telecommunications Commission, also requires providers to suspend roaming charges once they reach C$100 ($97) within a single monthly billing cycle unless the customer consents to pay additional charges.

And it requires the phone companies to suspend additional data charges once they reach C$50 in the month, unless the customer agrees to pay the additional charges.

BCE Inc, Rogers Communications Inc and Telus Corp are the largest wireless service providers in Canada.

The code takes effect on Dec. 2.