Abusive Business Practices | A helping hand for consumers

Under pressure, dazed by numerous expenses and faced with daily sources of irritation, consumers are starting to “grind their teeth.” The Legault government therefore tabled Bill 72 on Thursday to allow them to breathe a little and be better informed when the time comes to leave a tip at a restaurant, compare prices at the grocery store or even repay their car loan. Overview of the seven proposed measures.

Reducing the awkwardness of tipping

“There is growing pressure around tips,” stressed Justice Minister Simon Jolin-Barrette, during the press briefing aimed at presenting his bill entitled Law protecting consumers against abusive commercial practices and providing greater transparency in pricing and credit. The government is literally asking for payment terminals to be reprogrammed. At the end of a meal, consumers who pay the bill with a card will be able to add the tip to the amount before taxes, as required by convention. Currently, those who sit down at a restaurant find themselves with a terminal in their hands that calculates the service after adding the GST and QST. Thus, for a dinner whose bill comes to $200 (before taxes), the customer will in fact leave a tip on an amount of $229.50. In the bill, tip suggestions must be presented in a neutral manner and be “equally visible.” There is no question of the 20% being highlighted compared to the others, for example.

How much does a single box of cookies cost?

For three boxes of chocolate chip cookies, the customer must pay $5. But if he only wants one, how much should he pay? “It’s not normal that we have to ask ourselves this question,” denounces Minister Jolin-Barrette. “The price of a food item per unit must be visible and clear.” […] at all times.” For example, for group purchases, retailers will have to clearly indicate the unit price of the famous box of cookies. Grocers will also have to clearly indicate the price a loyalty program member can pay, as well as the regular price (non-member), to avoid unpleasant surprises at the checkout for those who do not have the famous card. Consumers should also be able to see which products are taxable. “Many of us are unaware that a box of five granola bars can be taxable, while a box of 10 granola bars, of the same type, of the same brand, cannot be,” says the minister. To “compare apples with apples,” the same units of measurement will also have to be indicated for products of the same type, but of a different brand or size. Does it say “Price drop” on your favorite bag of chips? You will need to be able to tell whether it is a decrease of $1 or 15 cents on the regular price.

At $15 or less, it’s free

Typical scenario: At the store, a customer decides to get his hands on a tablecloth for his Christmas dinner, the price of which is displayed at $15. Once at the checkout, the employee asks him for $20 instead. Under the bill, the retailer will be required to let him have the item for free. “In the event of a pricing error, an item priced at $15 or less will be free and a $15 discount will be offered on an item priced at more than $15,” states the government’s explanatory leaflet. Currently, the law provides that the item will be free if it is advertised at $10 or less. This amount has not been revised in 25 years.

Avoiding over-indebtedness

“Over the years, the Office de la protection du consommateur has noticed that some alternative lenders were using schemes to lend at excessive rates,” explains the Minister of Justice. He denounces the fact that membership fees and renewal fees are not calculated in the credit rate. “We have seen completely deplorable cases where people signed up for credit at 9.99% interest, but when including membership and renewal fees, the rate climbs to 300%, or even 400% interest.”

“Merchants will now have to include renewal fees in the credit rate. Variable credit merchants will have to hold a permit from the Office in the same way as money lenders. This will allow the Office de la protection du consommateur to ensure better monitoring of this sector of activity.” As for the credit limit, a consumer who asks for $500 – because that is what corresponds to his or her ability to repay – will not be offered a higher amount.

The automobile and the balloon

“In Quebec, one in four transactions for the purchase or lease of a car involves negative equity, which is the addition of an unpaid debt on the exchange vehicle, commonly called a balloon or balloon loan,” explains Simon Jolin-Barrette. This situation often occurs when a consumer wants to change vehicles, but has not finished paying off the one they are driving. Commonly called a “balloon,” this approach allows the debt from the car loan to be added to the new loan. “In some cases, citizens end up paying double what they should for the value of a vehicle,” adds the minister. Without banning it, the government wants to be able to better regulate this practice.

Door-to-door and heat pumps

The government wants to put an end to the “unfair” practices of itinerant salespeople. A typical case: a company, going door to door, offers to inspect the attic (roof space) and then claims to have detected mold or other serious problems, when the photos taken are not even of the homeowner’s attic. There is also the example of contractors who offer to change the heating system at great expense to then allow customers to save on their electricity bill. “We propose to prohibit itinerant salespeople from entering into a sales or rental contract for a heating or air conditioning unit such as a heat pump or for an insulation service.”

Frauds

Are you fraudulently charged $200 on your debit card? Your liability will be limited to $50, unless otherwise specified. [Par contre]if the individual has given his PIN, if the individual participates in the fraud, the financial institution will not be held responsible nor the merchant. If we contribute to the fraud, we will not be reimbursed because we are an agent of the fraudulent initiative,” warned the minister.

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