Quebec Government Proposes Regulation of Cell Phone Contracts

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Quebec Government Proposes Regulation of Cell Phone Contracts

5:50 pm on June 17, 2009 | Category: Business, Wireless, Regulation, Editorials

The provincial government of Quebec has tabled new legislation to regulate mobile phone contracts, in response to a high number of consumer complaints.

Bill 60, which was introduced on Tuesday by Justice Minister Kathleen Weil, will prohibit carriers from automatically renewing wireless contracts and force merchants to disclose the total cost of the services being offered.

“Consumers often don’t understand everything that they have agreed to when they’ve signed that contract,” Weil explained. “The contracts are a little vague, and there are services that are added over time without their knowledge and without their consent.”

Overall, Bill 60 seems to be a good step towards transparency in marketing, but it also includes some troubling elements that could harm both businesses and consumers in the long run. The legislation will make it significantly easier to get out of multi-year service agreements, even when such agreements are offered in good faith. This could discourage retailers from subsidizing new mobile devices, and prevent some consumers from getting the products they want.

Bill 60 will likely be debated by Quebec legislators sometime this fall.