New rules to govern cell phone contracts – nothing about lower prices.

News 100 blueBy Staff

April 2, 2014

BURLINGTON, ON.

Tracy MacCharles, Minister of Consumer Services and Consumer Protection Initiatives got herself out in front of a microphone earlier today and passed on what she thought was good news – and good news it was – assuming what she said is true, true, true.

Tracy MacCharles

The Minister of Consumer Services and Consumer Protection Initiatives told us how we were going to be protected from cell phone contract abuse – from the offices of a cell phone provider.

Which is a nice way of saying the prices aren’t coming down but you will know just how high – try sky high – those prices are going to be when you sign up.

That the Minister delivered her comment at the offices of Wind Mobil gives you a sense of who has the clout; had she been out on a street corner with people who had their phones next to their ears and talked to them about what works and doesn’t work – this might have been a different story.

So for now we have to go with what the Minister said in that controlled environment the politicians like.

Eight out of every 10 Ontario families have a wireless services agreement but most of us don’t really understand the contracts we sign: the terms and conditions, what’s included in the agreed upon monthly fee, and what will cost extra.

Thus the new Wireless Services Agreements Act now in effect, brings long-awaited improvements to the marketplace. Ontario consumers can now expect clearer, easier-to-understand information, and fewer surprises when they enter into, or amend, cell phone and wireless services contracts.

Requiring plain language contracts;

Requiring that contracts clearly outline which services come with the basic fee, and which would result in extra charges;

Requiring that providers get a customer’s explicit consent before amending, renewing or extending a fixed-term contract;

Enforcing a cap on cancellation fees, making it less expensive for consumers to walk away from contracts; and

Allowing a consumer to cancel a contract at no cost after two years.

Cell phone usersWhat can consumers do if they think their contract was not properly made — or they feel they are paying for services they didn’t contract for?  Under our new law, providers who do not comply with the rules must give consumers who cancel their contracts a full refund for up to a year of service.

Cell phone users - crowdIf a provider charges for services after a contract is improperly amended, a consumer is entitled to get that money back. 

The act also addresses advertising by wireless services providers. Providers must now show the minimum monthly costs in ads – if they are advertising any costs – and the most prominent price must be the all-inclusive price.

Keeping up with all these rules and the services being provided to protect us can be daunting.  The government has launched a new program (yes, another one) called Consumer Protection Ontario; an awareness program that will link together all of the consumer protection activities of the Ontario government with a common identifier.

Provincially mandated administrative authorities – such as the Real Estate Council of Ontario, the Electrical Safety Authority, and Technical Standards and Safety Authority, will help the people of Ontario know where they can turn to get information about their consumer concerns.

The Stronger Protection for Ontario Consumers Act gave provides more effective rules to help people who have to deal with door-to-door transactions, dealing with debt settlement companies, or in real estate transactions.

The province is going to modernize Ontario’s Condominium Act, so that the 1.3 million people in this province who live in a condo will have up-to-date legislation that reflects the reality of condo life today – including proper qualifications for managers and increased consumer protection for owners.

They are also continuing to explore home inspector qualification to increase the level of confidence people have when they buy a home – they need to be sure that their pre-purchase inspection has been done by someone with appropriate credentials.

Tow truck with car

Protection from tow truck drivers – now that is something useful.

Do you get the sense that we have a government working hard to convince us that they are out there doing everything they can to protect us – which many of us wanted them to do when they were thinking through how to get out of those gas plants they decided not to complete – that was a $1 billion ouch.

 

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