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, introduced Thursday, would prevent merchants from including sales tax in the amount for which a tip is requested. It also stipulates that the consumer must “determine the amount of the tip themselves.” Finally, the payment monitor will have to display the “no tip” option in as large a font as the others.
In recent years, the types of businesses that require tips have multiplied, and payment monitors sometimes offer limited tipping options.
Food prices and loyalty program
The Minister of Justice, Simon Jolin-Barrette, also proposes to regulate the display of prices in food stores.
It would now be mandatory to indicate whether taxes apply to a food or not (basic products such as fruits and vegetables, milk and cereals are tax-free).
The government also wants to force supermarkets to highlight the regular price compared to the prices offered to people with loyalty cards.
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 per weight or per unit of measurement will also be highlighted if the bill is passed as is.
Fraud Protection
Other protections are added in terms of credit contracts. Merchants will no longer have the right, 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 loans tied to long-term leases, such as for cars. To prevent people from getting into too much debt, they will no longer be able to be subject to debt transfer.
Another change: it would now be prohibited to sell heating, air conditioning, insulation and decontamination devices on a mobile basis.
The government has also put in place measures to protect people who are targeted by fraud in certain circumstances.
Therefore, the person whose card or account was used fraudulently will have a limited payment liability of $50, except for certain exceptions.
Further details will follow.