Price Labelling - Éducaloi

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La loi vos droits

Clientele : Consumers Subject : Price Labelling Print date : February 8th, 2012

Consumers

Consumer Contracts
Price Labelling

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Have you ever come home after shopping to find that the price you paid was more than the advertised price?

Did you know that the law has rules about these errors?

In this Infosheet, Éducaloi explains mandatory product labelling and the legal protections for consumers who are victims of pricing errors.

Do merchants have to write the price on every item in the store?

As a general rule, merchants must clearly indicate the total sale price on each item. The Consumer Protection Act is very strict about this.

However, there are some exceptions. For example, merchant dont't have to indicate the price on items that

are sold for 60 cents or less,
are sold in a vending machine,
are so small that it is impossible to put a price tag on them, or
are on sale.

The price of these items does not need to be right on the item. But it must still be displayed nearby, for example, on the shelf where the products are stored.

The local supermarket uses optical scanners (bar code readers) and never puts price tags on its products. Is that legal?

Yes. Merchants that use scanning systems don’t have to display the price on products they sell, as long as they respect certain rules.

These rules are as follows:

the merchant must have and display a price accuracy policy offering compensation to consumers if errors occur (the next question explains this policy)
a label must be installed near each product
if the sales area of the store is 697 square metres or larger, scanners must be made available to clients
all the scanners in the store must be connected to a single database
the scanners must display the price of goods with bar codes
the receipts given to consumers must indicate the merchant’s name, telephone number, e-mail or client service address (if applicable), the date of the transaction, the nature of the item bought and its price

This general exemption does not apply to clothes or goods on which there is no bar code. In these cases, the merchant must still display the price on each item.

What if the price at the cash is higher than the advertized price?

Merchants who use scanners to show the price must apply the price accuracy policy established by law. Even if this policy is called a “voluntary undertaking”, merchants must respect it, unless they put the price on each item.

If the price at the cash is higher than the advertised price, the price accuracy policy says that:

If the advertized price of the item is $10 or less, the merchant must give you the item for free.
If the advertized price is more than $10, the merchant must give you the advertized price, minus a discount of $10.

For example: Josée gets a bike seat at a large store. The price advertized on the shelf is $15.99. At the cash, the bill shows $18.99. According to the price accuracy policy, the merchant must give her the seat for $ 5.99: the advertized price ($15.99) minus the $10 discount.

Be careful! The rules about compensation for pricing errors do not apply on some products. See the last question in this Infosheet: “Does the compensation for pricing errors apply on all products?”

I was misled by a label near an item because the product description was for a different item. Can I get compensation?

No. Generally, a consumer must look at the complete description of a product on the label, and not just the price. For example, if a label shows the price of a radio and the object nearby is a bicycle, the consumer cannot claim the price at the cash for the bike was not the same as the price advertized.

What happens if I buy several of the same product and there is a pricing error?

If you buy several identical items, and when you arrive at the cash, you realize that there is a pricing error, you have the right to get all the items at the lowest price. However, the $10 discount only applies to 1 item.

For example, say you buy 3 razors at $30 each and at the cash the receipt shows $50 for each razor. You have the right to 2 razors at $30 and one at $20 (2 razors at the lowest price and 1 at the lowest price minus the $10 discount). This comes to a total of $80 instead of $150.

What can I do if a merchant refuses to give me the reduced price I have a right to?

First, if you are dealing with the person at the cash, you can ask to speak to the manager or the person in charge. These people are generally knowledgeable about how the law works.

If you can’t come to an agreement and feel you have been harmed, you can file a complaint with the Consumer Protection Office. To learn how to file a complaint, visit the Office’s website or call them.

You can also send a demand letter telling the merchant to respect the law. For more information on this, consult our Infosheet Demand Letters and our Éducaloi.tv episode on the topic.

You can also read our information on the Court of Quebec, Small Claims Division.

Do the rules on compensation for pricing errors apply to all products?

No. They don’t apply when the law prohibits a discount (for example, on tobacco products and medications) or when the compensation would result in a price lower than the set minimum price for these products (for example, milk, beer and wine).

Important
These questions and answers are for general informational purposes only. If you have a specific problem, consult a legal professional.