Bill 72, tabled Thursday by Minister Simon Jolin-Barrette, promises to protect consumers from abusive business practices and provide greater transparency in price display and credit. What impact will this new legislation have on consumers and their wallets?
Lower tips?
The key provision of Bill 72 concerns the supervision of tips. Under the new legislation proposed by the CAQ government, tips will now be calculated on the amount of the bill before taxes. Previously, a merchant could choose to do so on the total after taxes.
This will result in a slightly less expensive bill, but only by a few dollars. For example, on a $100 restaurant bill, a 15% tip before tax would result in a final bill of $129.98. A 15% tip after tax would result in a bill of $132.23.
The bill also stipulates that tipping options offered on the payment terminal must be equally visible. The merchant must also make it more visible to the consumer the option to leave the tip they want or, quite simply, not to leave a tip.
“This is an interesting measure to make it easier to refuse to tip,” says Alexandre Plourde, lawyer and analyst at Option Consommateurs. “Because often, people feel stingy and guilty about not leaving a tip, or forced by the payment terminal to give one.”
Option Consommateurs deplores, however, that the bill does not restrict the type of businesses that can ask for tips, nor does it regulate the tip rate that can be asked for.
Clearer prices at the grocery store
The bill will also have an impact on the display of prices in grocery stores. Labels must imperatively indicate the unit price of the product, the price per unit of measurement (per 100 g or 100 ml, for example) and the regular price (in the event of a sale), all in a legible manner, so as to facilitate comparison.
In the case of products whose price is reduced with membership in a loyalty program such as Scène + or PC Optimum, the “non-member” prices must be visible and clear at all times.
“These may seem like details, but I believe they can provide more transparency and help consumers make choices in grocery stores,” explains Alexandre Plourde. “Since the pandemic, we have seen an increase in food prices and, at the same time, the development of all sorts of price display strategies that can cause some misunderstanding among consumers.”
Another new feature: retailers will now have to display whether a product is taxable or not. In Quebec, basic food products, such as dairy products, meat and vegetables, are exempt from tax, as are certain products sold in bulk. With the reduction, “certain products that were previously untaxed become taxable, which creates some confusion among consumers,” explains Mr. Plourde.
In addition, the pricing accuracy policy has been updated, something that has not been done in 25 years. In the event of a pricing error, an item of $15 or less will be free. For an item over $15, a $15 discount will be offered.
Better protections for consumers
Bill 72 also contains several measures to protect Quebec consumers from credit abuse and fraud.
For example, merchants who offer variable credit will now have to include the membership and renewal fees in the credit rate they offer. They will also not be able to offer a credit limit greater than that requested by the consumer. The consumer who is about to reach his credit limit will also have to be notified of this.
In the event of bank account or debit card fraud, the liability of the affected consumer will be limited to a maximum of $50.
And it will now be prohibited for itinerant salespeople to sell heating and air conditioning equipment, or decontamination or insulation services. “Many consumers are victims of itinerant salespeople who have questionable practices, who sell poor quality products at very high prices, who sell under pressure, for products that are not very advantageous and that risk causing problems after purchase,” recalls Alexandre Plourde. “It is entirely relevant to have this type of measure in Quebec given the problems that result from this type of commercial practice.”