The new Price Accuracy Policy which will increase from $10 to $15 the discount granted on an item for which there was a labeling error could cause the closure of certain grocery stores, fears the Association of Grocery Retailers of Quebec (ADA).
Posted at 1:16 a.m.
Updated at 7:00 a.m.
The number of frauds linked to this policy, of which approximately 44% of the group’s 1,000 members are currently victims, is also likely to increase if the reimbursement amount is higher, it is estimated. Without providing further details, the ADA cited “fraudulent practices” linked to the Price Accuracy Policy, developed by employees or customers.
Under Bill 72 tabled on September 12 by the Minister of Justice, Simon Jolin-Barrette, the amount of reimbursement in the event of a pricing error will be higher. A consumer who places a 750-gram package of chicken breasts priced at $15 in their grocery cart and who, once at the checkout, realizes that they are being charged $19 will be able to leave with their tray without having to pay for it. “In the event of a pricing error, an item costing $15 or less will be free and a discount of $15 will be offered on an item costing more than $15,” indicates the government’s explanatory leaflet.
Currently, the law states that the item will be free if it is advertised for $10 or less. This threshold has not been revised for 25 years.
However, this legislative change could cause the loss of certain grocery stores or at the very least deal a serious blow to their turnover, argued Tuesday the ADA, during special consultations and public hearings on the draft law. law 72 (Law protecting consumers against abusive commercial practices and providing better price and credit transparency).
“Excessive”
« [L’exonération à 15 $] may ultimately lead to the closure of stores,” said Samuel Bouchard Villeneuve, director of public affairs for the ADA, during the consultations.
Describing the $15 discount as “disproportionate”, its president and CEO, Pierre-Alexandre Blouin, believes that it is literally a “dead loss” for grocers.
“This is the most important issue that our members have raised,” added Samuel Bouchard Villeneuve in an interview. “The net profit margin for a food retailer is slim. It is around 1.5%. The rebate that would go from $10 to $15 is much bigger for a food retailer than for another type of business that sells products worth several hundred dollars. »
Currently, for certain merchants represented by his association, the losses caused by the Price Accuracy Policy can amount to more than $1,000 per month, he says.
According to him, the labeling errors made by employees are not intentional, but in “good faith”. “With 20,000 or 30,000 products, it can happen,” he emphasizes.
If I have to give $15 off because there was an honest mistake that was made, I’m losing money, literally. It takes me over $1000 in sales to make up for all that.
Samuel Bouchard Villeneuve, director of public affairs for the Association of Food Retailers of Quebec
Mr. Bouchard Villeneuve then adds that the establishments operated by his members are among the essential businesses.
Not all traders will go to the front
The ADA, which supports the idea that consumers have the right to pay a fair price, asks the government to maintain the $10 rebate or to vary the amount depending on the type of industry.
As for the Retail Council of Canada, which represents major brands such as IGA, Metro, Loblaw (Maxi, Provigo), Costco and Walmart, the president for Quebec, Michel Rochette, says he understands the ADA’s concerns. However, he does not intend to defend this point during the hearings which will continue on Tuesday.
During the last consultations, Mr. Jolin-Barrette did not seem to want to show any openness to the requests of the Retailers Association regarding the Price Accuracy Policy. “In 2001, the price was $10,” he recalled. There, at $15, it’s not even the inflation since 2001.”
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