New rules on pricing, tip calculation take effect in Quebec today. Here’s what you can expect

Starting today, Quebec consumers may notice some changes when out doing their grocery shopping or grabbing a bite to eat at a restaurant.

That’s because new rules surrounding pricing and how tips are calculated come into effect May 7.

In November, Quebec unanimously passed Bill 72.

The legislation aims to help Quebecers make the best choices based on their budget and needs by protecting them against abusive commercial practices.

Here’s a list of what you can expect.

Suggested tip calculations

Businesses are now required to calculate suggested tips based on the price before tax.

For example, suggested tips for a restaurant bill of $100 will be calculated as a percentage of $100, not the after-tax total of $114.98.

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Quebec’s justice minister has tabled a bill that would require restaurants to calculate tips on prices before taxes to protect cost-weary consumers from misleading tip recommendations.

When proposing the changes, Justice Minister Simon Jolin-Barrette, who is also the minister responsible for consumer protection, noted that 62 per cent of Canadians reported leaving a higher tip than they had planned because of the options presented at the pay terminal.

We shouldn’t have to feel pressure when we’re paying the bill, Jolin-Barrette said. Tipping needs to remain a discretionary choice for consumers.

He also stressed the importance of having the correct information to better guide consumer decisions.

Some fear the changes will mean lower earnings for staff who rely on tips, but Martin Vézina, vice-president of public affairs at the Quebec Restaurant Association, said it won’t have a significant impact on the industry at large.

Restaurant owners, he said, might even benefit by paying less in credit card fees on tips, as well as less income tax on declared tips.

Compensation for pricing errors

As of Wednesday, if an item’s advertised price is $15 or less and doesn’t match the price scanned at the cash register, consumers in Quebec can potentially get the item for free.

That is the case if the scanned price is higher than the price advertised for that item, be it in-store, in an advertisement or a flyer.

Merchants will also have to give a $15 discount for inaccurate pricing on items sold for more than $15.

The main thing is that you never have to pay above the advertised price in any situation, said Charles Tanguay, a spokesperson for the Office de la protection du consommateur.

The Price Accuracy Policy is not a new regulation. It’s been in place since 2001, but until now, the base amount was $10, not $15.

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As of May 7, if an item is priced $15 or less and doesn’t match what’s scanned at the cash register, consumers in Quebec will be able to get the item for free. This used to only apply to items under $10, but the province is making the change to further ensure consumers are charged the advertised price.

The increase, Tanguay said, accounts for inflation and is meant to be an incentive for businesses to reduce pricing errors, which he says can amount to disinformation and can bring a consumer to [make] wrong decisions.

There are of course some exceptions. The policy doesn’t apply on shoes and clothing, items without barcodes and medication sold exclusively in pharmacies. A full list of exemptions can be found here (new window).

Michel Rochette, president of the Quebec branch of the Retail Council of Canada, told CBC News that while the  organization agrees with the increase from $10 to $15, it was taken aback by the scope of the new law.

It was only recently that the council learned it would also apply to online ads and flyers and every kind of publicity, which he’s worried might lead to confusion.

He said sometimes the price in a flyer is different from the price on the website, and prices can also vary from region to region.

If you extend the scope of that bill, you know, recognizing what is the right price to the right store, it could bring a lot of new challenges, Rochette said, adding the council is hoping for clearer guidelines and a more realistic timeline.

Clearer price labelling for food

The new standards put in place are also meant to make comparing food prices easier for shoppers.

Grocery stores and other businesses selling food products are now required to clearly label the regular cost of a product and specify whether items are taxable.

When a price is offered for a set of food items, say three lemons for $2.50, and these items can be purchased separately, the unit price must be sufficiently visible compared to the price of the set.

If I buy just one item, how much should I pay? I don’t want to know necessarily how much is three items if I just want one, Tanguay said.

Items that are on sale must also show the regular price.

Find all the new labelling rules here (new window).

with files from Holly Cabrera, Kwabena Oduro and The Canadian Press

This article is republished from RCI.