Quebec’s Bill 72 is crucial for consumer protection at the grocery store and sets the standard for other provinces to follow
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Quebec may have taken a notable step this week that warrants attention from other provinces. By introducing Bill 72, Quebec Justice Minister Simon Jolin-Barrette has moved toward increased pricing transparency in grocery stores and restaurants – a long overdue initiative.
From a food economist’s perspective, the bill’s impact on grocery stores is significant. If passed, taxable food items will be clearly identified at the point of sale. The average Canadian grocery store currently carries over 4,600 products subject to taxes, but most consumers are unaware of which specific items are taxed as few scrutinize their receipts closely.
In Quebec, where sales taxes can add over 15 percent to the price of taxable goods, this oversight has notable consequences. To put it in perspective, this tax increase is equivalent to four to five years’ worth of inflation in one shot. The rise of shrinkflation – where product sizes are reduced – adds to the confusion, as many previously tax-exempt items, like snacks, now fall into taxable categories. As a result, products such as ice cream and granola bars, which didn’t have taxes last year, are now subject to tax.
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While the ethical debate around taxing food is beyond the scope of this commentary, Quebec’s initiative to enforce clearer price disclosure is commendable and a step in the right direction. Along with requiring transparency on which items are taxable, grocers must now distinguish between member and non-member pricing – a response to the growing complexity of retailer loyalty programs. The bill also mandates standardized unit pricing, such as per 100ml or 100g, across all food categories. This uniform approach will make price comparisons easier for consumers and improve market efficiency.
Another important reform targets price accuracy. The Retail Council of Canada’s Scanner Price Accuracy Code, which was implemented decades ago, protects consumers from pricing errors at checkout. If an item scans at a higher price than listed, the customer is entitled to a price adjustment. For items under $10, the product is given for free, while for items over $10, customers receive a $10 discount.
However, inflation has pushed a growing percentage of grocery items well beyond the $10 threshold, with estimates suggesting that 15 to 25 percent of items now exceed this price point. In response, Bill 72 raises the threshold to $15, better aligning with current price levels and ensuring continued consumer protection.
Crucially, these reforms won’t add extra costs for grocers and can be implemented quickly. From an operational standpoint, the changes are minimal, requiring only procedural adjustments. Extending these measures across Canada would yield widespread consumer benefits with little disruption to retailers.
Bill 72 also seeks to reform tipping practices, an area of growing consumer frustration. The increasing prevalence of tipping prompts on payment terminals has led to “tipping fatigue,” where people feel pressured to tip without fully realizing how much they are adding. The bill proposes simplifying this by requiring tips to be calculated on pre-tax amounts, excluding provincial and federal sales taxes. If passed, this change would bring more clarity to tipping and provide relief to consumers.
The food service industry’s silence on the tipping issue has been striking. Despite growing consumer frustration over the years, the industry has failed to take the lead in addressing the problem. Now, with Bill 72, the Quebec government is stepping in, and it wouldn’t be surprising if other provinces follow their example.
Overall, the regulatory costs of implementing these changes are minimal, and most of the reforms are principle-based, necessitating only slight operational shifts. Quebec’s leadership on this front sets a valuable precedent, and it is time for other provinces to take note. These reforms are not only beneficial but essential for maintaining consumer trust and promoting fairness in the marketplace.
Dr. Sylvain Charlebois, a Canadian professor and researcher specializing in food distribution and policy, is a senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain.
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