A new law that limits cellphone fees is set to take effect in Manitoba.

The law, first announced and passed the legislature last year, requires cellphone providers to clearly spell out how much they charge customers who cancel contracts.

The law also limits how high cancellation fees can be.

In many cases, customers need only pay the cost of a free phone they were given, on a pro-rated basis for the remaining length of their contract.

Companies that provide cellphone services face fines of up to $1,000 for a first offence.

The fines increase for subsequent offences.