OTTAWA — Canada’s telecommunications regulator will prohibit service providers from charging fees to activate, change, or cancel internet and mobile phone plans effective June 12, 2026, a move designed to facilitate consumer mobility in a market characterized by high service costs and rising public dissatisfaction.

The Canadian Radio-television and Telecommunications Commission (CRTC) announced the mandate on Thursday, following a sharp 17% increase in consumer complaints regarding cellphone, internet, and television services between 2024 and 2025. Data from the industry watchdog indicates that unclear or incorrect billing remains the primary grievance for Canadian subscribers, who pay some of the highest telecommunications rates globally.

The CRTC says it will prevent companies from charging customers when they cancel, change or activate plans. The new rules will come into effect on June 12. https://t.co/NS2HGQjnps
— CityNews Toronto (@CityNewsTO) March 12, 2026

Regulatory Overhaul and Effective Dates

The new rules represent a significant shift in the regulatory landscape for Canada’s major carriers, including Rogers Communications, BCE Inc. (Bell), and Telus Corp. By eliminating activation and cancellation fees, the CRTC aims to remove financial barriers that often deter customers from moving to lower-cost competitors or taking advantage of promotional offers.

Activation fees for new mobile and internet accounts will be eliminated.
Modification fees for changing existing service tiers or data limits will be prohibited.
Cancellation fees for terminating services will no longer be permitted.
Implementation date set for June 12, 2026.

The directive follows federal amendments to the Telecommunications Act, which required the CRTC to implement robust consumer protection measures. In late 2024, the commission initiated public consultations to address common industry practices that limit consumer choice, including lack of transparency regarding contract expiry and limited self-serve options for plan management.

“We are taking action to give Canadians more control over their internet and cellphone services,” said Vicky Eatrides, CRTC chairperson and CEO, in a statement. “Today’s decision removes extra fees to activate, change or cancel a plan. This means that consumers can switch to a better deal without having to pay extra just to get the service that works best for them.”

Addressing the Rise in Consumer Complaints

The regulatory intervention comes as the industry faces increased scrutiny over service quality and pricing transparency. A report covering the 2024-2025 period highlighted that billing issues were the dominant source of friction between providers and the public. This surge in complaints prompted the CRTC to explore measures that ensure customers are notified when discounts are about to expire, preventing “bill shock” when monthly costs suddenly increase.

The CRTC provided further context on the rising tide of consumer frustration in a recent briefing, which was captured in the following broadcast report:

Standardized Labeling and Future Transparency

Beyond the elimination of fees, the CRTC is evaluating the introduction of standardized labels for home internet plans. These labels would function similarly to food nutrition facts, providing clear, uniform information on monthly pricing, data speeds, and additional costs. This concept mirrors a policy implemented by the U.S. Federal Communications Commission (FCC) in 2024, which requires American providers to display such information both online and in-store.

The commission held hearings on the labeling proposal last June, with consumer advocacy groups arguing that standardization is essential for improving digital literacy. Currently, Canadian consumers often face complex promotional structures that make it difficult to compare the true cost of service between providers like Xplore, Novus, or the national carriers.

Market analysts suggest that while the elimination of switching fees may impact short-term administrative revenue for telecommunications firms, the move is intended to stimulate a more fluid competitive environment. Additional measures regarding self-serve cancellation and automated notifications are expected to be announced by the regulator in the coming months, further aligning Canadian consumer protections with international standards.