If you concluded a fixed-length home phone service contract in which you received no discount on a device essential to the use of the service, such as a phone, the service provider is subject to rules that limit the cancellation fees that may be charged.

Calculating cancellation fees

If you did not receive a discount on the sale price of a device essential to the use of the service, such as a phone, the cancellation fees cannot exceed the lesser of the following 2 amounts:

  • $50;
  • an amount not exceeding 10% of the price of the services specified in the contract that were not delivered.

This calculation also applies if you received a discount on the price of a service.

Sample calculation when no discount was given

If you signed a 12-month contract with a monthly fee of $30 and decide to cancel your contract in the 7th month, the price of the services specified in the contract that were not delivered is $150 (5 months [number of months remaining in the contract] x $30 [monthly fee]).

10% of $150 is $15. As this amount is lesser than $50, the maximum cancellation fee that can be charged is $15.

Failure to respect the maximum cancellation fees

If your service provider has charged cancellation fees greater than what is permitted, you can dispute the fees charged. You can also file a complaint with the Office de la protection du consommateur. See Contact us to find out how to reach us.

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Last update : November 24, 2017

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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.