Quebec tackles tips and food price displays

Photo: Valerian Mazataud Archives Le Devoir The bill aims in particular to clarify the display of food prices which have been undermined by the proliferation of loyalty programs.

Isabelle Porter in Quebec

Published yesterday at 11:08 Updated yesterday at 18:32

• Quebec

The Quebec government has decided to better regulate the use of tips by merchants. Its bill also aims to clarify the display of food prices, which has been undermined by the proliferation of loyalty programs.

Bill 72, tabled Thursday, would prevent merchants from including sales tax in the amount requested as a tip. It also stipulates that consumers must “determine the amount of the tip themselves.” Finally, the payment monitor will have to display the “no tip” option in the same large font as the others.

In recent years, the types of businesses that request tips have multiplied and payment monitors sometimes offer limited options for tips to give. “There is growing pressure on tips,” noted Justice Minister Simon Jolin-Barrette, who is responsible for the file, on Thursday. “Tipping must remain a discretionary choice for consumers.”

To those who would have liked the government to be even stricter by limiting the use of tips to certain types of businesses, for example, he retorts that ultimately, it is up to the consumer to decide how much they want to give.

“The government is not there to say: 'you are going to tip at this place' or 'you are not going to tip at that place'. […] On the other hand, Quebecers have the right to know, when they are lent the terminal […] that it is the price before taxes. »

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Food prices and loyalty programs

Minister Simon Jolin-Barrette also proposes to regulate the display of prices in food stores.

“It’s not normal that it’s so hard to find your way around,” said the minister, who is also responsible for consumer protection. “The price must be visible and clear at all times.”

It would now be mandatory to indicate whether taxes apply to a food item or not (basic products such as fruits and vegetables, milk and cereals are not taxable).

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“Many of us are unaware that a box of five granola bars can be taxable, while a box of ten granola bars of the same type and brand cannot be. In short, it should always be clearly indicated whether a product is taxable or not,” said Mr. Jolin-Barrette.

The government also wants to force supermarkets to highlight the regular price compared to the prices offered to people who have a loyalty card.

The font size will be limited for member prices. The same goes for discounts offered for multiple purchases compared to the unit price.

The price by weight or per unit of measurement will also be highlighted if the bill is adopted as is. The latter will be the subject of special consultations in parliament in the coming weeks. Once the bill is approved, merchants will have three months to comply with the new rules. Offenders are liable to fines of $5,000 to $175,000 depending on the type of infraction.

Finally, the government is increasing the compensation offered to customers in the event of a pricing error. An item of $15 or less will then be free and a $15 discount will be due to them for any product of a value greater than that.

It is not normal that it is so hard to find your way around. The price must be visible and clear at all times.

— Simon Jolin-Barrette

Protection in the event of fraud

Other protections are added in terms of credit contracts. Merchants will no longer be allowed, in particular, to offer a credit limit greater than that requested by the consumer, and membership fees will have to be included in the credit rate.

The government is also cracking down on borrowing on long-term leases, such as cars. To prevent people from getting into debt, they will no longer be eligible for debt transfers or what is known as “negative equity” or “balloon loans.”

Another change: it would now be prohibited to sell heating, air conditioning, insulation and decontamination equipment on a mobile basis. The Office de la protection du consommateur has noted an increase in fraud related to this type of business in recent years. Fraudsters would show up at homes offering to do an immediate inspection of the attic, for example, and then have contracts signed on the spot by showing false photographs showing mould. “They create a false sense of urgency, often among seniors,” lamented Minister Jolin-Barrette.

The government has also planned measures to protect people who are targeted by fraud in certain circumstances. Thus, the person whose debit card or account was used fraudulently will have a payment liability limited to $50.