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The Ontario Minister of Consumer Services introduced the
Wireless Services Agreements Act, 2012 on May 3, 2012.
The Bill only applies to agreements with consumers. Consumers are
those acting for personal, family or household purposes.
Accordingly, the Act will not apply to those who are self-employed
and purchase smart phones for business use. The proposed
legislation will only apply prospectively to agreements entered
into after the date the legislation comes into force where either
the consumer or the person entering into the agreement with the
consumer is located in Ontario.
Here are some of the highlights:
The legislation will apply to wireless agreements, which are
agreements with a consumer in which the supplier agrees to provide
wireless services that the consumer is able to access from a mobile
device such as a smart phone or cell phone.
The legislation will apply even if the supplier does not sell
the consumer the mobile device.
Advertising must show all-inclusive costs, which must be the
most prominent cost information in the advertising.
Wireless services agreement must meet the prescribed disclosure
obligations or they will not be enforceable. Among the disclosure
obligations are:
Minimum cost obligations described on a periodic basis (e.g.
monthly);
Maximum usage of each service before the consumer will trigger
additional costs not included in the minimum cost obligations;
and
Cost of optional services and any restrictions that will cause
those costs to increase.
Suppliers of wireless services must provide advance notice to
the consumer if the consumer accesses a service that will result in
additional costs.
Consumers may cancel an agreement at any time for any
reason.
There are limits on cancellation fees based on prorating the
economic inducements (such as discounted handsets) over the term of
the contract or, for agreements of no fixed term, 48 months.
About Fraser Milner Casgrain LLP (FMC)
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located in the country's key business centres. We focus on
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of where you choose to do business in Canada, our strong team of
professionals possess knowledge and expertise on regional, national
and cross-border matters. FMC's well-earned reputation for
consistently delivering the highest quality legal services and
counsel to our clients is complemented by an ongoing commitment to
diversity and inclusion to broaden our insight and perspective on
our clients' needs. Visit:
www.fmc-law.com
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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