Calculate the Cancellation Fees for Telecommunication Residential Contracts in Quebec

In Quebec, since June 30, 2010, the new Bill 60 protects consumers who terminate a service contract before its end by indicating the maximum penalty payments companies are allowed to impose. This bill also applies to all kind of residential contracts in the telecommunication field (internet access, cable television, etc) with a predetermined duration.

If a subscriber benefits from a discount on the purchase of a device by signing a contract for a determined period, the cancellation fee is calculated as follow:

maximum cancellation fees =
(rebate on regular price of good) - (rebate on regular price of good X number of months used / duration of contract)

If the subscriber has not benefited from a discount when purchasing the device, the maximum cancellation fee considers the monthly fees and select the smaller amount between 50$ or 10% of the price for the expected services left in the contract. Example: cancellation of a 36 months contract with a monthly cost of 30$ after 12 months.

( (duration of contract - number of months used) X 30$) / 10

The result being 72$, the penalty fee will be the smaller amount between 50$ and 72$, which is 50$.