If you concluded a cellular telephone contract in which you received no discount on a product essential to the use of the service, such as a cellular 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 your cellular telephone, the cancellation fees cannot exceed the lesser of the following 2 amounts:
- 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 24 month contract with a monthly fee of $45 and decide to cancel your contract in the 10th month, the price of the services specified in the contract that were not delivered is $630 (14 months [number of months remaining in the contract] x $45 [monthly fee]).
10% of $630 is $63. As this amount is greater than $50, the maximum cancellation fee that can be charged is $50.
Last update : October 22, 2020
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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.