Is it legal to charge a cancellation fee in Canada?

Not for a phone or internet plan. Since June 12, 2026, Telecom Regulatory Policy CRTC 2026-43 prohibits fees for activating, changing or cancelling a telecom plan. It applies to every telecom provider in the country, including flanker brands, discount MVNOs and internet service providers. It does not apply to television service.

Can they still charge me for my phone if I leave early?

Yes. If your contract included a subsidized device you are paying off through your plan, the provider can still collect the outstanding balance on that device when you leave early. That is a device balance, not an exit penalty, and it is legitimate. A fee for the act of leaving itself is not.

What do I do if a cancellation fee is already on my bill?

Keep the bill, ask the provider to remove the charge citing Telecom Regulatory Policy CRTC 2026-43, and get a reference number. If they refuse, escalate through their management-team process, then take it to the CCTS, which is free and can order refunds of up to $5,000.

They Charged Me to Cancel. Is That Legal?

Q: Does the cancellation fee ban cover TV service?

No. Policy 2026-43 is a telecom decision covering cellphone and internet plans. Television and broadcasting distribution services sit under a separate statutory framework with no equivalent fee ban.

For a phone or internet plan, no — not since June 12, 2026. Here is what is banned, the one charge that is still legitimate, and how to get the rest taken off.

The short answer. Charging you a fee to leave a phone or internet plan is prohibited. So is charging you to start one, or to change one. The rule is Telecom Regulatory Policy CRTC 2026-43, it has been enforced since June 12, 2026, and it binds every telecom provider in the country. One thing is still chargeable: the balance owing on a subsidized phone.

Last updated: September 2026

What Is Banned

Three of the most familiar line items on a Canadian phone or internet bill became illegal in 2026:

Cancellation fees — a charge for the act of leaving. A “deactivation charge”, or an early cancellation fee on a plan with no subsidized device, is exactly what this killed.
Activation fees — a charge for turning a plan on. Signing up is not a service they get to bill you for.
Change fees — a charge for modifying an existing plan, including changes made through an agent on the phone.

It applies to everyone selling telecom service here: the national carriers, regional players, the flanker brands, discount MVNOs and internet service providers. The mechanism was an amendment to the Wireless Code and the Internet Code — the rulebooks governing wireless and internet contracts — flowing from changes to the Telecommunications Act that came into force on October 30, 2025.

The One Charge That Is Still Legitimate

If your contract included a subsidized device — a phone you have been paying off through your monthly plan — the provider can still collect what is outstanding on that device when you leave early.

That is a device balance, not an exit penalty. The distinction is the whole game when you are reading a final bill. Money still owed on hardware is legitimate. A fee charged because you left is not — and if you were on a bring-your-own-device plan, there is no device balance to owe.

It Does Not Cover Your TV Service

Policy 2026-43 is a telecom decision. It covers cellphone and internet plans. Television and broadcasting distribution services sit under a separate statutory framework — one with no equivalent fee ban, and no self-service cancellation mandate either. If the charge you are disputing is on the TV portion of your bill, this rule does not help you, and you are back to your contract and the TVSP Code.

That gap between how a telecom subscriber and a TV subscriber get treated is the running theme of this site, and it got wider on June 12.

Getting the Charge Removed

Keep the bill. A charge dated after June 12, 2026 for activation, a plan change, or cancelling a plan with no device on it is the whole case. You do not need to argue; you need to point.
Ask them to remove it, citing Telecom Regulatory Policy CRTC 2026-43 by name. Get a reference number for the call and note who you spoke to.
Escalate if they refuse. Most providers run a management-team escalation form — our provider guides give the path for each one.
Take it to the CCTS if it stays on your bill. The Wireless and Internet Codes are exactly what the CCTS enforces in individual disputes. It is free, it is independent of your provider, and it can order refunds of up to $5,000. Reach it at 1-888-221-1687.

There is a one-year deadline. The CCTS will not act on a complaint brought more than one year after you knew, or ought to have known, the facts behind it. If your final bill is older than that, file anyway and explain when you found out.

What to Write

Paste this into the CCTS form, or send it to your provider first. Factual and specific beats long and angry:

"I am a [provider] customer (account [number]). I cancelled my [cellphone / internet] service on [date]. My final bill, dated [date], includes a charge of $[amount] described as [exact wording from the bill]. Telecom Regulatory Policy CRTC 2026-43 has prohibited fees for cancelling a telecom plan since June 12, 2026, and my plan did not include a subsidized device. I contacted [provider] on [date] and spoke with [name/reference number], who [their response]. I am asking that this charge be removed and refunded. I have a copy of the bill available."

If your plan did include a subsidized phone, drop that sentence and instead ask them to itemize the charge — you are entitled to know how much of it is device balance and how much is an exit fee.

These rules are still being tested

Within weeks of the ban, all three national carriers had new fees the ban supposedly did not cover — and the CRTC ordered them to justify it, with penalties up to $10 million on the table. We follow those proceedings and email once when something is actually decided.

The decision itself, explained — what CRTC 2026-43 says and why the Commission did it
The fees that showed up anyway — the show-cause proceeding against Bell, Telus and Rogers
The full CCTS process — deadlines, what it can order, and how long it takes

File a CCTS Complaint Where to Complain