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Telecom Notice of Consultation CRTC 2026-155

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Gatineau, 30 June 2026

Public record: 1011-NOC2026-0155

Show cause and call for comments – Compliance with the prohibition of fees that are a barrier to switching cellphone and Internet plans

Deadline for submission of interventions: 30 July 2026

Deadline for submission of replies: 10 August 2026

[Submit an intervention or view related documents]

Summary

Through its Consumer Protections Action Plan, the Commission is working to help protect and empower Canadians in their dealings with Internet, cellphone, home phone, and television service providers.

Part of the Commission’s work is to ensure that service providers comply with existing consumer protections. Telecom Regulatory Policy 2026-43 and section 27.04 of the Telecommunications Act (the Act) established new consumer protections that prohibit activation and modification fees. These protections came into effect on 12 June 2026.

The Commission recently became aware that Bell Canada, TELUS Communications Inc., and Rogers Communications Canada Inc. (the Companies) have introduced fees that may be contrary to this prohibition. The Commission is therefore launching this proceeding requiring the Companies to show cause why these fees are not in violation of sections 24 and 27.04 of the Act and Telecom Regulatory Policy 2026-43.

If the Companies are found to have committed a violation under the Act, they are also required to show cause why:

The Companies are made parties to this proceeding. The Commission invites interested persons who wish to become parties to this proceeding to submit an intervention.

Background

  1. In Telecom Regulatory Policy 2026-43 (the Policy), the Commission established new consumer protections that prohibit activation and modification fees.Footnote 1 In the Policy, the Commission specified the types of fees that are prohibited under section 27.04 of the Telecommunications Act (the Act). That section prohibits service providers from charging a fee to a subscriber that is related to the activation or modification of a telecommunications service plan, or any other fee whose main purpose is, in the opinion of the Commission, to discourage subscribers from modifying their service plan or cancelling their contract for telecommunications services. These protections set out in the Policy came into effect on 12 June 2026.
  2. In the Policy, the Commission determined that the prohibition applies to any fee incurred as a result of activating a new retail telecommunications service plan or modifying an existing one, except for reasonable fees related to the physical installation of a telecommunications service at a customer’s premises or fees related to additional products or services the customer has explicitly chosen to purchase.
  3. The Commission clarified that fees related to optional services (e.g., Wi-Fi configuration at a customer’s premises) or products (e.g., additional equipment that is not required for the delivery of the telecommunications service to the customer’s premises) that consumers may expressly agree to purchase do not fall under the category of “activation or modification fees” related to the telecommunications service itself.
  4. The Commission amended the Wireless Code and Internet Code to include the definition of the prohibited fees. Both of these codes are imposed on service providers pursuant to sections 24 and 24.1 of the Act.

Show cause proceeding

  1. The Commission is launching a show cause proceeding regarding alleged violations of the Policy and of sections 24 and 27.04 of the Act by Bell Canada, TELUS Communications Inc. (TELUS) and Rogers Communications Canada Inc. (Rogers) [collectively, the Companies]. The correspondence detailed in the paragraphs below between Commission staff and the Companies has been added to the public record of this proceeding.

Bell Canada’s device-handling charge

  1. On 6 May 2026, Commission staff learned that Bell Canada had introduced a $40 device-handling charge for customers purchasing a cellphone along with their wireless service. Commission staff issued a letter informing Bell Canada that it did not appear that the device-handling charge falls under the exemption for optional services and products set out in the Policy.
  2. In its 10 June 2026 response, Bell Canada submitted that purchasing a device is optional for its customers, who can elect to purchase a device elsewhere, and not as a result of activating a new retail telecommunications service plan. Bell Canada added that purchasing a device is a separate commercial transaction from the customer entering into a contract for the service plan. Bell Canada also submitted that the fee recovers real and legitimate costs related to the provision of the device.
  3. On 12 June 2026, Commission staff issued a request for information to Bell Canada asking whether it had ceased charging these fees after the Policy had come into effect. If it had not, Commission staff asked Bell Canada to explain why it considered these fees to fall outside of the new prohibitions that came into force that day.
  4. In its 17 June 2026 response, Bell Canada confirmed that it would continue to apply the device-handling charge. It added that, for the reasons set out in its 10 June 2026 response, it considered this charge to fall outside of the prohibition. Bell Canada restated that the charge is related to the optional purchase of a device, recovers legitimate device fulfilment costs, and does not discourage customers from switching or modifying plans.

TELUS’s SIM- and eSIM-related fees

  1. On 9 June 2026, Commission staff learned that TELUS had introduced a $15 fee for the purchase of a SIM [Subscriber Identity Module] card or eSIM [embedded SIM] as part of its wireless service. Commission staff issued a letter informing TELUS that it did not appear that the SIM-related fees fall under the exemption for optional services and products set out in the Policy.
  2. On 12 June 2026, Commission staff issued a request for information to TELUS, asking whether it had ceased charging these fees. If it had not, Commission staff asked TELUS to explain why it considered these fees to fall outside of the new prohibitions that came into force that day.
  3. In its 17 June 2026 response, TELUS confirmed that it had not stopped its practice of charging a SIM card fee and it considered this practice to be compliant and allowable under the Policy and the Act. TELUS submitted that customers have many reasons to purchase a SIM card or eSIM, including replacing a damaged one or acquiring one for travel. As a result, TELUS submitted that this fee is not an activation fee. TELUS added that if it were an activation fee, it would fall under the exemption articulated by the Commission under the Policy because its main purpose is to recover costs, and the fee is not meant to discourage subscribers from modifying their plans or cancelling their contract.

Rogers’ device set-up, shipping, and SIM-related fees

  1. On 16 June 2026, Commission staff learned that Rogers had introduced (i) a $40 device setup charge, (ii) a $25 shipping charge for devices ordered online, and (iii) an unspecified SIM fee. That same day, Commission staff issued a request for information to Rogers asking whether it had ceased its practice. If it had not, Commission staff asked Rogers to explain how these fees are compliant with the Policy.
  2. In its 18 June 2026 response, Rogers confirmed that it had not stopped charging these fees because it considered them to be compliant with the Policy. Specifically, Rogers provided the following explanations:
    • For the device setup charge, Rogers submitted that this charge is not related to the activation or modification of a service plan, nor is its main purpose to discourage subscribers from modifying or cancelling their service plan. Rogers submitted that this charge is tied to the optional purchase of a device through assisted retail and customer care channels. Rogers does not apply this charge for devices purchased through self-serve channels. Rogers added that the charge reflects the legitimate cost of the service provided to customers.
    • For the SIM fee, Rogers submitted that this fee is not new and has been charged for many years, though only to customers who request a new physical SIM card to replace a lost or damaged one. Rogers added that as a standalone purchase, the fee is not contrary to the protections.
    • For the shipping charge, Rogers submitted that it has charged this fee periodically for many years. Rogers submitted that it is a standard charge assessed across all industries and markets and reflects the real cost of delivery. Rogers added that the charge is compliant with the protections because it is neither an activation or modification fee, nor is it a barrier to modifying or cancelling a service plan.

Have violations been committed?

  1. Pursuant to section 72.001 of the Act, every contravention of a provision of the Act and every contravention of a regulation or decision made by the Commission under the Act constitutes a violation, and the individual who commits the violation is liable:


    (a) in the case of an individual, to an administrative monetary penalty not exceeding $25,000 and, for a subsequent contravention, a penalty not exceeding $50,000; or

    (b) in any other case, to an administrative monetary penalty not exceeding $10,000,000 and, for a subsequent contravention, a penalty not exceeding $15,000,000.

  2. Based on the correspondence received to date, the Commission is concerned that the Companies may be charging fees that appear to be prohibited under section 27.04 of the Act and that appear to be contrary to the Wireless Code and the Internet Code, imposed pursuant to section 24 of the Act. 
  3. As a result, the Commission directs the Companies to show cause why the Commission should not find that they committed a violation under section 72.001 of the Act since the Policy came into effect.

If a violation is found to have been committed, should the officers or directors of the Companies be held liable?

  1. Section 72.008 of the Act provides that an officer, director or agent or mandatary of a corporation that commits a violation is liable for the violation if they directed, authorized, assented to, acquiesced in, or participated in the commission of the violation, whether or not the corporation is proceeded against.
  2. If the Companies are found to have committed a violation of the Act, the Commission directs the Companies to show cause why their officers or directors should not be found liable.

If a violation is found to have been committed, what are the appropriate enforcement measures?

  1. Section 72.002 of the Act sets out the factors that the Commission must take into account in determining the appropriate amount of an administrative monetary penalty:


    (a) the nature and scope of the violation;

    (b) the person’s history of compliance;

    (c) any benefit the person obtained from the commission of the violation;

    (d) the person’s ability to pay;

    (e) factors established by any regulations; and

    (f) any other relevant factor.

  2. Section 72.002 of the Act also sets out that the purpose of an administrative monetary penalty is to promote compliance and not to punish.
  3. If the Companies or their officers or directors have committed violations, the Commission will take into account the factors above when determining the appropriate amount for each violation and assess them against the record of this proceeding.
  4. Finally, the Commission directs the Companies to show cause why it should not impose a mandatory order requiring the Companies or their officers or directors to take all steps necessary to stop charging prohibited fees, within 60 days of the date of that order, if the Companies are found to have committed a violation of the Act. 

What you need to know to participate in this proceeding

Procedure

  1. The Canadian Radio-television and Telecommunications Commission Rules of Practice and Procedure (the Rules of Procedure) apply to the present proceeding. Accordingly, the procedure set out below must be read in conjunction with the Rules of Procedure and related documents, which can be found on the Commission’s website under Statutes and Regulations. The guidelines set out in Broadcasting and Telecom Information Bulletin 2010-959 provide information to help interested persons and parties understand the Rules of Procedure so that they can more effectively participate in Commission proceedings.

Submitting comments

  1. The Companies are made parties to this proceeding and are directed to make submissions that address the issues set out above by 30 July 2026. The deadline for the Companies to file replies to matters raised during the intervention phase is 10 August 2026.
  2. The Commission invites comments that address the issues set out above. Interested persons who wish to become parties to this proceeding must submit an intervention. The Commission will accept interventions that it receives on or before 30 July 2026.
  3. Any interested persons and parties can request accommodations to participate in this proceeding. Accommodations could be related to disability, or to other reasons, like religious observance, or to a combination of reasons. If you wish to request accommodations in filing your comments, you are encouraged to make your request within the first 15 days after this notice of consultation is posted on the Commission’s website.
  4. Interested persons and parties who require assistance submitting comments can contact the Commission’s Hearings & Public Proceedings group at hearing@crtc.gc.ca.
  5. For more information on accessibility and accommodations in Commission proceedings, please see Broadcasting and Telecom Information Bulletin 2025-95.
  6. Pursuant to Broadcasting and Telecom Information Bulletin 2015-242, the Commission expects incorporated entities and associations, and encourages all interested persons and parties, to file submissions for Commission proceedings in accessible formats (for example, text-based file formats that allow text to be enlarged or modified, or read by screen readers). To provide assistance in this regard, the Commission has posted on its website guidelines for preparing documents in accessible formats.
  7. Interested persons and parties can coordinate, organize, and file, in a single submission, interventions by other interested persons or parties who share their position. Information on how to file this type of submission, known as a joint supporting intervention, as well as a template for the covering letter to be filed by the parties, can be found in Broadcasting Information Bulletin 2010-28-1.
  8. Submissions longer than five pages should include a summary. Each paragraph of all submissions should be numbered, and the line ***End of document*** should follow the last paragraph. This will help the Commission verify that the document has not been damaged during electronic transmission.
  9. All documents required to be served on parties to the proceeding must be served using the contact information contained in the interventions.
  10. The Commission encourages interested persons and parties to monitor the record of the proceeding, available on the Commission’s website, for additional information that they may find useful when preparing their submissions.
  11. Submissions must be filed by sending them to the Secretary General of the Commission using only one of the following means:


    by completing the
    [Intervention/comment/answer form]

    or

    by mail to
    CRTC, Gatineau, Quebec K1A 0N2

    or

    by fax at
    819-994-0218

  12. In accordance with the Rules of Procedure, a document must be received by the Commission and all relevant parties by 5 p.m. Vancouver time (8 p.m. Gatineau time) on the date it is due. Parties are responsible for ensuring the timely delivery of their submissions and will not be notified if their submissions are received after the deadline. Late submissions, including those due to postal delays, will not be considered by the Commission and will not be made part of the public record.
  13. The Commission will not formally acknowledge submissions. It will, however, fully consider all submissions, which will form part of the public record of the proceeding, provided that the procedure for filing set out above has been followed.
  14. Parties who send documents electronically must ensure that they will be able to prove, upon Commission request, that filing, or where required, service of a particular document was completed. Accordingly, parties must keep proof of the sending and receipt of each document for 180 days after the date on which the document is filed or served. The Commission advises parties who file or serve documents by electronic means to exercise caution when using email for the service of documents, as it may be difficult to establish that service has occurred.

Confidentiality notice

  1. The Commission’s proceedings are designed to allow everyone to provide input so that it can make an informed decision in the public interest. As a result, the general rule is that all information filed with the Commission is placed on the public record so that it can be accessed by everyone.
  2. However, the Commission also often needs detailed information from the companies it regulates and supervises to make an informed decision. This information can be commercially sensitive, especially as the environment in which the companies operate becomes more competitive. The Commission will therefore accept certain information as confidential.
  3. Parties can designate information as confidential under subsection 39(1) of the Act and provide a detailed rationale as to why that information should be considered confidential. The Commission reminds parties that when a document is filed with confidential information, an abridged version must also be filed so that it can be included in the public record.

Privacy notice

  1. Please note the following:
    • Documents will be posted on the Commission’s website exactly as received, in the official language and format in which they are received. This includes any personal information contained in them, such as full names, email addresses, postal/street addresses, and telephone and fax numbers.
    • All personal information parties provide as part of this proceeding, except information designated as confidential, will be posted on the Commission’s website and can be accessed by others.
    • However, the information parties provide can only be accessed from the web page of this particular proceeding. As a result, a general search of the Commission’s website using either its search engine or a third-party search engine will not provide access to the information that was provided as part of this proceeding.
    • The personal information that parties provide may be used by the Commission for the purpose the information was obtained, or for a similar purpose.

Availability of documents

  1. Links to interventions, as well as other documents referred to in this notice, are available on the Commission’s Consultations and hearings: have your say page.
  2. Interested persons can find electronic versions of the documents by clicking on Submit an intervention or view related documents at the top of this notice.
  3. Documents are available upon request during normal business hours by contacting:


    Documentation Centre
    Examinationroom@crtc.gc.ca

    Client Services
    Toll-free telephone: 1-877-249-2782
    Toll-free TTY: 1-877-909-2782

Secretary General

Related documents

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