Canada’s Ban on Certain Internet and Phone Plan Fees Takes Effect Next Week

Canada will soon ban several fees tied to phone and internet service contracts, making it easier for consumers to switch, modify, or cancel plans. Starting Friday, June 12, telecommunications providers will no longer be allowed to charge activation fees for new cell phone or internet plans, fees for changing existing plans, or early cancellation fees unless a customer is still paying off a device under contract. The changes were announced in March by the Canadian Radio-television and Telecommunications Commission (CRTC) as part of its Consumer Protections Action Plan.

The new rules are designed to give Canadians more control over their wireless and internet services and reduce the risk of surprise charges. CRTC CEO Vicky Eatrides said the agency is acting to help consumers switch to better deals without paying extra just to get the service that works best for them. The policy is also meant to make it easier for customers to take advantage of improved offers in a market where prices can remain high.

The CRTC has also established the Wireless and Internet Code to help Canadians better understand their rights and responsibilities when signing or managing contracts with service providers. The code is intended to make contract terms clearer and improve consumer protections across the telecommunications sector.

The timing of the changes comes amid ongoing concerns about the cost of internet service in Canada. A 2026 survey from the U.K.-based comparison site Broadband Genie ranked Canada as having the most expensive internet in North America. The report said Canada placed 130th overall, with an average broadband cost of US$55.26, or C$76.99.

The new rules are part of a broader set of regulatory updates taking effect in Canada in June. For many households, the changes could make it simpler to shop around for better phone and internet plans without being locked into expensive penalties or added fees. The CRTC says the goal is to create a fairer system where consumers can move between providers and plans with greater confidence and fewer financial barriers.

As competition continues among telecom companies, the updated protections may increase pressure on providers to offer clearer pricing and more customer-friendly contract terms. For consumers, the biggest immediate impact will be greater flexibility and more predictable costs when signing up for, adjusting, or ending service agreements.