Cellphone providers in Canada have been asked to stop selling plans that are longer than 24 months.
The Canadian Radio-Television and Telecommunications Commission says those plans may not be compliant with Canadian regulations that capped contracts at two years.
Some companies have started to offer three-year plans with no money down at the start.
“Canadian customers have the right to make informed choices based on clarity,” states CRTC Chair Ian Scott in a release. “We want customers to have options for financing their device, if they so choose, but we also need to make sure these new 36-month device financing plans are fair for consumers. The Wireless Code protects consumers and gives them the ability to take advantage of competitive offers at least every two years. The CRTC is concerned by these financing plans as they appear to make it difficult for a customer to switch service providers even after 24 months.”
The CRTC is now reviewing such plans and is expected to make a ruling soon.
