Yes, we know Bill 72 in Quebec has been all over the news and on your feed since September 12, 2024, when it was introduced. Don’t worry if you’ve missed it, you’re busy running your business. We’re here to help simplify it and break it down to understand how it may affect your business.
In a nutshell, Bill 72 aims to make key changes to the Consumer Protection Act (CPA) and related regulations, focusing on areas like tips, food pricing displays, long-term lease contracts, credit agreements, and itinerant merchants (businesses or individuals who sell goods or services on the move, often without a permanent location or fixed storefront. They typically operate from temporary setups like stalls, vehicles or by going door-to-door).
That’s the high-level overview, now let’s dive into how it may impact your business.
What is Bill 72?
Bill 72, officially titled An Act to protect consumers against abusive commercial practices and to offer better transparency with respect to prices and credit, was introduced as part of the Quebec government’s ongoing efforts to simplify how contracts, pricing and tipping is presented to consumers. It aims to streamline procedures for businesses and individuals, reduce bureaucratic hurdles, and modernize how Quebec consumers interact with businesses.
At its core, the law seeks to eliminate unnecessary complexities and inefficiencies in areas such as permits, licenses, registrations, and compliance reporting. By doing so, it allows businesses to focus more on their operations rather than navigating cumbersome regulations. While the bill’s primary focus is reducing administrative burdens, it was introduced to enhance consumer protection and promote transparency in commercial transactions. This legislation encompasses several key areas:
-
Transparent pricing: Grocery stores must clearly display prices, including tax status, and standardize units of measurement to help consumers compare prices.
-
Tipping practices: Tips on payment terminals must be calculated based on the pre-tax amount and presented neutrally without influencing specific tip amounts.
-
Price accuracy policy: If a scanned price exceeds the advertised price, consumers get items under $15 for free and receive a $15 discount for items priced more than $15.
-
Credit contracts: Merchants must hold permits, disclose fees, and ensure credit limits match consumer preferences when offering credit cards or lines of credit.
-
Itinerant merchants: Sales of certain products, such as heating or air conditioning appliances and decontamination or insulation services, are prohibited by door-to-door merchants.
-
Debit card fraud liability: Consumer liability is capped at $50 for unauthorized debit card transactions unless gross negligence is proven.
How Can Moneris Help Businesses Navigate Bill 72?
Bill 72 is designed to bring consistency and fairness to how tips are calculated and processed. The law mandates that customers must have the option to tip based on the pre-tax (subtotal) amount of their bill, not the final total that includes taxes. This ensures gratuities are calculated fairly and transparently, benefiting both employees and customers.
For businesses, this means that your payment systems—whether integrated with a point-of-sale (POS) system or standalone—must be capable of processing tips based on the subtotal amount before taxes are applied.
P.S. The deadline for complying with Bill 72 is May 7, 2025.
What is Moneris doing to help here? Great question! The only change that needs to be made is tip-flow; we’re compliant with all other requirements. We’re currently working to provide updates to all our key platforms. In most cases you won’t have to do anything – it will be automatically applied.
1. Integrated Payment Solutions
For merchants using integrated solutions, Moneris has ensured seamless support for tipping on subtotal across various platforms:
-
Moneris Core Semi-Integrated & Moneris Core Restaurant: These solutions already support tip-on-subtotal functionality. Merchants can simply enable this setting, provided their POS software supports it. If not, a small integration update will be needed, and Moneris can assist.
-
Moneris Go (Integrated): Moneris is developing an update to enable tip-on-subtotal functionality. Documentation and application updates will be ready by March 15, 2025, and devices will be automatically updated before May 7.
-
POSPad on the P400: This solution currently does not support tip-on-subtotal but will be updated. An update will be ready by March 15, 2025, with Moneris providing support to merchants for implementation.
2. Standalone Payment Solutions
Moneris is introducing tax management to support merchant compliance with standalone terminals.
-
Moneris Go (Standalone): This device will be updated to support tip-on-subtotal and advanced tax management. Updates will be applied automatically before May 7, 2025, with pre-configured tax settings for QST (9.975%) and GST (5%). Merchants can adjust these settings if needed.
-
Moneris Core (Standalone): Similar updates will be applied to Moneris Core devices, with an automatic configuration of the combined QST and GST rate (14.975%) between May 5-7. Merchants can modify these settings after the update if needed.
3. UEAT Kiosk
Since UEAT kiosks rely on POSPad on the P400, these will also receive tip-on-subtotal functionality following the March 15 update. Moneris will work closely with merchants to ensure all devices are updated by May 7.
What More Can Merchants do to Stay Compliant?
Here are some more practical steps to stay head:
-
Stay informed: Regularly review updates and guidelines issued by the Quebec government regarding bill 72. This includes changes to licensing processes, compliance requirements, and reporting obligations.
-
Review and update pricing displays: Ensure all product pricing is transparent, indicating tax applicability and using standardized units of measurement.
-
Enhance price accuracy protocols: Implement procedures to prevent pricing errors and establish clear policies to compensate consumers appropriately when errors occur.
-
Obtain necessary permits for credit services: If offering open credit contracts, secure the required permits and ensure all fees are transparently disclosed to consumers.
-
Limit consumer liability for fraud: Adopt measures to limit consumer liability in cases of unauthorized account use or fraud, aligning with the $50 cap specified in the bill.
-
Invest in digital tools: With the shift to online processes, ensure your technology infrastructure is equipped to handle digital submissions and interactions including secure platforms for data sharing and communication.
-
Review compliance practices: Conduct regular audits and work with legal or compliance experts to help mitigate risks.
-
Train employees: Educate your employees about the changes introduced by bill 72 to help ensure smooth implementation. Your staff should be familiar with new processes, digital tools, and compliance requirements relevant to their roles.
-
Leverage expert guidance: Consult with legal, financial, or business advisors who specialize in Quebec's regulatory environment to help your business navigate the changes effectively. These experts can provide tailored advice on how to align with the new regulations while maximizing efficiency.
-
Plan ahead: Anticipate potential delays or adjustments as you transition to the new processes introduced by Bill 72. Prepare for these changes early to prevent disruptions to operations.
How Does Bill 72 Affect Businesses Across Canada?
Bill 72 primarily affects businesses operating in Quebec, but its impact can extend to businesses across Canada in several ways. Here’s how:
-
Out-of-province businesses: If your business sells products or services to Quebec residents, you’ll need to comply with the new regulations, even if you're located outside Quebec. This could include changes to how you display pricing, handle tips, or structure long-term contracts.
-
E-commerce and marketing: Businesses across Canada with an online presence must ensure their marketing materials, such as websites or advertisements, comply with Quebec’s language and consumer protection laws. This includes making sure that information is presented in French when necessary.
-
Contracts and transactions: If you’re entering into contracts with Quebec consumers (such as leases or credit agreements), the bill’s provisions may require adjustments in how those contracts are presented or structured to meet Quebec's legal standards.
-
Penalties for non-compliance: Businesses outside Quebec could face penalties if they violate the provisions of Bill 72 when dealing with Quebec consumers, especially if marketing or contractual practices are not in line with the new rules.
Conclusion:
Bill 72 represents a significant shift in the way businesses interact with government agencies in the province. Moneris is here to make the transition seamless, with proactive updates, hands-on support, and compliance-ready solutions designed to fit your business needs.
If you have questions about Bill 72 or want to ensure your payment solution is ready, contact Moneris today.
Article filed under:
money and financeShare
