Bell dodges activation fee bans with a newly invented $40 charge

It seemed like Canadian carriers were finally moving away from activation fees, but Bell has found a new way to keep charging customers. After a recent regulatory change that banned the usual connection fee, Bell has introduced a new charge called the device handling fee.

Following a recent ruling from the Canadian Radio-television and Telecommunications Commission (CRTC) banning activation and connection fees, Bell Canada has quietly introduced a new $40 “device handling charge” for customers buying phones through the carrier, first spotted by MobileSyrup. This new fee is half the old $80 connection fee, but customers still have to pay extra when getting a new device.

Earlier this year, the CRTC targeted “junk fees” linked to wireless and internet plans. The new rules start on June 12, but carriers were told to follow them right away. Bell’s answer was to replace the fee instead of getting rid of it.

According to Bell’s updated support page, the new one-time charge is meant to cover “fulfillment costs associated with your device order.” The fee applies whether you buy online, in-store, or over the phone, though it doesn’t apply to smartwatches. Bell also notes the amount could change over time.

To be fair, Bell may have found a loophole that the CRTC left open. While the regulator banned general activation fees, it still lets carriers recover “reasonable” costs for physical work and hardware fulfillment. This difference likely explains why Bell changed the name of the charge instead of keeping the old connection fee.

Even so, customers are not convinced by Bell’s explanation. Many people online have called the new fee just a rebranded activation charge. Some Reddit users also said carriers were likely to make up for lost revenue in other ways after the CRTC ruling.

Now, the main question is whether other Canadian carriers will do the same. So far, Rogers Communications and TELUS have not introduced similar fees, but Bell may have set an example for the rest of the industry.