Why it’s Unethical for ISPs to Raise Prices during Contract Terms
customers sign a contract with an Internet Service Provider (ISP), they do so under the assumption that the agreed-upon terms, including the price, will remain consistent throughout the contract’s duration. Unfortunately, many ISPs reserve the right to raise prices even while customers are locked into a promotional or contract rate. This practice raises serious ethical concerns and erodes consumer trust.
1. Breach of Consumer Trust
At the heart of every contract is a promise: customers commit to a provider for a specified period, expecting stability and predictability. When an ISP raises prices during this time, it feels like a betrayal. Customers often make long-term financial plans based on the promotional price, and a sudden increase disrupts those plans, leaving them feeling trapped. This happened recently with customers of Rogers, Bell and Telus.
2. Imbalance of Power
ISPs have significant leverage over their customers. When prices rise mid-contract, customers often have no recourse. Breaking the contract to switch providers can result in hefty termination fees, effectively punishing customers for seeking fairness. This imbalance leaves customers with no choice but to absorb the higher costs, perpetuating a cycle of dependency. Customers will grow bitter and the relationship will be damaged forever.
3. Misleading Marketing Practices
Promotional pricing is often a key selling point for ISPs. Advertising a low initial rate, only to increase it mid-contract, can be seen as a bait-and-switch tactic. While the fine print may disclose the possibility of price increases, these terms are often buried in legal jargon that many customers don’t fully understand. This lack of transparency undermines informed decision-making and misleads consumers. Salespeople from Telus, Rogers and Bell also promise verbally that the prices will remain the same during the contract duration and in reality it often turns out not to be the case. To put it bluntly, these increases are highway robberies and these tactics should never be deployed to make a sale.
4. Undermining the Purpose of Contracts
Contracts are meant to benefit both parties: the customer gets price stability, and the ISP gets a guaranteed revenue stream for the duration of the agreement. By unilaterally raising prices, ISPs violate the spirit of the agreement. This behaviour sets a dangerous precedent where companies prioritize their bottom line over honouring their commitments. Some people they told us that their price increase was over $50 per month. That is an extra 600 dollars in year, which is extremely disconcerting for consumers who are already dealing with price inflation in Canada.
5. Financial Stress on Customers
Rising costs in daily life—unaffordable housing, groceries, gas, hydro—already put a strain on household budgets. Mid-contract price hikes by ISPs add to this burden, especially for low-income families who rely on affordable internet for work, education, and communication. Such practices can disproportionately harm vulnerable populations. With a price increase on top of a contract, consumers feel trapped and taken advantage of by corporations who only care about their bottom line. Any shred of human decency seems lost when it comes to these predatory practices. Read all about why life in Canada is so expensive.
6. Alternatives Exist, But They’re rarely Explored
ISPs often justify price increases by citing rising operational costs or investments in infrastructure. While these reasons may be valid, there are ethical ways to address them. For instance, price increases could apply only to new contracts or be accompanied by clear communication and an opt-out option for existing customers. However, such customer-first approaches are rarely or never implemented.
Conclusion: A Call for Ethical Practices
Raising prices while customers are locked into a contract with a promotional price is not just unfair—it’s unethical. It undermines trust, exploits power imbalances, and creates unnecessary financial stress. ISPs must prioritize transparency and honor the terms of their agreements. Our federal government and regulatory bodies such as the CRTC need to step in and investigate to protect consumers from such predatory practices.
In the digital age, internet access is more than a luxury; it’s a necessity. Customers deserve fair treatment, not shifting goalposts. It’s time for ISPs to prioritize ethics over profits and foster long-term relationships built on trust and integrity.
Rest assured that we at CanNet, an ISP with integrity promise that we would never raise the prices if you were locked into a contract with us. We know from experience how predatory that feels as a consumer. We have been there before and would never wish that upon anyone. For our contract free/commitment free high-speed home internet plans check here.