New rules on tipping and on price displays at grocery retailers took effect Wednesday across Quebec, in a move the government describes as an effort to make things easier for consumers.
The rules require the display of any suggested tipping options to be “neutral and uniform,” to prevent a merchant from pressuring clients to give higher tips. In addition, the rules require merchants to ensure the terminals do not suggest tips that are calculated on the price after taxes.
For example, a suggested tipping percentage on a $100 tab should be based on that amount and not $114.98, which includes the federal and provincial sales taxes.
Justice Minister Simon Jolin-Barrette, who oversees consumer protection, said the new rules will make life simpler for Quebecers by removing “irritants” at a time when “every dollar counts for Quebec families.”
“Our government is taking action to protect Quebecers’ wallets,” he said in a statement.
Also, grocery retailers will now have to include more information on displays, such as the price per unit of measure, and the price for customers who don’t belong to a store’s loyalty rewards program. That measure extends to any retailer that sells food, including convenience stores.
The province has also raised the baseline for an existing price accuracy policy from $10 to $15 – meaning that if the price at checkout is higher than the advertised price, the product must be offered for free if it is less than $15. The pricing error policy has existed since 2001.
Michel Rochette, president of the Retail Council of Canada’s Quebec branch, noted that consumers in stores should see changes in labelling. Rochette said in any given store, you could have 30,000 to 40,000 different products, so it’s a major task to change labels.
However, the province’s consumer protection agency recently added new criteria not included in the law that will take longer to implement. In recent weeks, the government decided the rules would extend to websites, phone applications and flyers.
“So it’s asking the industry to reprogram and reconfigure its advertising and communications, which wasn’t the case at the start,” Rochette said. “So there will be a need for some flexibility for the government.”
When it comes to tipping, Rochette notes that some terminals have needed to be reprogrammed or replaced. Quebec’s restaurant owners association warned members it is up to them to comply with the regulations, even if an external company oversees their point-of-service terminals.
Nathalie Guy, on her lunch break in downtown Montreal, said tipping had got out of hand, particularly during the pandemic as most people switched to using debit or credit. She recalled one time where she felt she had “no choice” but to tip while purchasing a meal.
“As long as it’s fair and at the discretion of the customer, I think that’s what is important,” Guy said.
Karine Grondin, finishing her meal at a food court, said she welcomes the rules. “Everywhere now you’re asked for one (a tip),” Grondin said. “It’s up to people to decide, but I agree it shouldn’t be on an amount including taxes.”
Speaking to reporters in Quebec City, Jolin-Barrette noted the goal of the in-store display changes is to better inform shoppers.
“Until last week, in some stores, you practically had to have a magnifying glass to see the price per hundred grams to see what the real unit price was,” Jolin-Barrette said. “So from now on, the information will be very clear: the regular price, the discounted price, the unit price, and the price per measure.”
The changes were introduced last fall and passed unanimously at the national assembly in November.
