By Maria Babbage, The Canadian Press
TORONTO - Canadian Tire customers won't be charged Ontario's controversial
eco fees starting Tuesday, largely because the program is too complex and
was mishandled by both government and businesses, the store chain announced
Monday.
The fees, which sparked widespread confusion when retailers started charging
them on thousands of new items July 1, were the victim of a "botched" roll
out and "poorly handled" by everyone involved, said Mike Arnett, president
of Canadian Tire Retail.
"We just think that the whole program that was rolled out on the first of
July this year was not well-managed by anyone, really, and that it's caused
a great deal of confusion for our customers," he said in an interview.
"We're being asked questions that we don't have good answers to, and we
really think the program needs to be reworked."
Waste Diversion Ontario set up a very complicated structure for charging eco
fees and left retailers to sort it out, Arnett explained in a release.
For example, two similar brands of cleaning products could have two
different eco fees depending on slight variations in their ingredients.
"Even more confusing, the 'interpretation' of these fees is left up to each
retailer - meaning that five different retailers may charge five different
eco fees for the exact same product - all depending on how they interpret
the very complicated fee structure," he wrote.
Stewardship Ontario, an industry-led organization that oversees the program,
also shares in the blame because it didn't do a good job in preparing
Ontario consumers for the new fees, Arnett added.
"Stewardship Ontario did not provide answers to the many questions customers
and the media had in the face of fees that nobody understood," he wrote.
Canadian Tire, which apologized last week for overcharging some of its
customers, stumbled too in implementing the fees, largely because of how
complex they were, Arnett acknowledged.
"Although we quickly fixed any incorrect fees, we still have customers every
day asking us why two nearly identical products have different fees," he
wrote.
"We don't have good answers - because the program itself isn't built to be
intuitive for either customers or retailers."
The Canadian retailing giant won't be charging any more eco fees until it
can "sort out a better system" with Stewardship Ontario and the provincial
government.
It's also looking into listing the new eco fees on price tags and shelf
labels to make it more transparent, Arnett said.
The government gave Stewardship Ontario the power to collect fees to fund a
recycling program that diverts potentially hazardous items, such as fire
extinguishers, household cleaners and paint, from Ontario's landfills.
But there was no public warning that the eco fee, which was first introduced
in 2008, would be slapped on thousands of new items earlier this month.
Stewardship Ontario collects fees from retailers and manufacturers who, in
turn, determine the fees that they pass on to consumers.
The fee can be embedded in the product or the sticker price, which means in
some cases, shoppers won't know when or how much they're being charged.
Consumers, critics and some industry groups have been scratching their heads
about why certain items are subject to the levy, such as laundry detergent,
grass seed and environmentally friendly products that use natural
ingredients.
The fee furor has provided rich fodder for Ontario's opposition parties,
with the Progressive Conservatives promising to scrap the levy if they win
the 2011 provincial election.
Ontario's outspoken ombudsman Andre Marin is also looking into complaints
about the fees after the New Democrats asked him to intervene.
Canadian Tire's decision provides further evidence that Premier Dalton
McGuinty's "eco tax grab" - which hit consumers the same day the new 13 per
cent harmonized sales tax kicked in - has created chaos at the cash
register, said Opposition Leader Tim Hudak.
"Clearly, since this eco tax was brought in hidden behind the HST back on
Canada Day, it has been an absolute disaster and a tax increase Ontario
families cannot afford," he said.
Environment Minister John Gerretsen belatedly jumped into the fray last
week, firing off a scolding letter to Stewardship Ontario demanding that
they take "quick action" to stop customers from being overcharged.
He also mused in an interview about making legislative changes that would
allow the government to exert more control over the organization.
Stewardship Ontario wrote back two days later, saying it has no authority to
interfere in how retailers and manufacturers pass on the eco fees to
consumers.
"In the meantime, I would respectfully ask that the parties refrain from any
finger-pointing or accusations, especially in the media," CEO Gemma Zecchini
said in her July 15 letter to Gerretsen.
"Stewardship Ontario has an important program to operate that requires
consumer support if it is to meet its objectives and targets. Tarnishing the
reputation of Stewardship Ontario for problems not of its making and outside
of its power to remedy is unfair and undermines the objectives of waste
diversion in this province."
Zecchini's letter was obtained by the Opposition Conservatives, who passed
it out Monday to reporters.
Canadian Tire's decision to scrap the fees should be applauded, but Premier
Dalton McGuinty should have never allowed the industry to effectively
regulate itself with respect to the eco fees, said NDP Leader Andrea
Horwath.
"The McGuinty government dropped the ball, it's now up to the government to
pick up the pieces and ensure the companies that profit off this waste
should be responsible for getting rid of it - not their customers," she said
in a statement.
Asif Khan, Realtor
Re/Max All-Stars Realty Inc.
Google me: Asif Khan Re/Max
Follow me on Twitter Become a Fan on Facebook
By Maria Babbage, The Canadian Press
TORONTO - Canadian Tire customers won't be charged Ontario's controversial
eco fees starting Tuesday, largely because the program is too complex and
was mishandled by both government and businesses, the store chain announced
Monday.
The fees, which sparked widespread confusion when retailers started charging
them on thousands of new items July 1, were the victim of a "botched" roll
out and "poorly handled" by everyone involved, said Mike Arnett, president
of Canadian Tire Retail.
"We just think that the whole program that was rolled out on the first of
July this year was not well-managed by anyone, really, and that it's caused
a great deal of confusion for our customers," he said in an interview.
"We're being asked questions that we don't have good answers to, and we
really think the program needs to be reworked."
Waste Diversion Ontario set up a very complicated structure for charging eco
fees and left retailers to sort it out, Arnett explained in a release.
For example, two similar brands of cleaning products could have two
different eco fees depending on slight variations in their ingredients.
"Even more confusing, the 'interpretation' of these fees is left up to each
retailer - meaning that five different retailers may charge five different
eco fees for the exact same product - all depending on how they interpret
the very complicated fee structure," he wrote.
Stewardship Ontario, an industry-led organization that oversees the program,
also shares in the blame because it didn't do a good job in preparing
Ontario consumers for the new fees, Arnett added.
"Stewardship Ontario did not provide answers to the many questions customers
and the media had in the face of fees that nobody understood," he wrote.
Canadian Tire, which apologized last week for overcharging some of its
customers, stumbled too in implementing the fees, largely because of how
complex they were, Arnett acknowledged.
"Although we quickly fixed any incorrect fees, we still have customers every
day asking us why two nearly identical products have different fees," he
wrote.
"We don't have good answers - because the program itself isn't built to be
intuitive for either customers or retailers."
The Canadian retailing giant won't be charging any more eco fees until it
can "sort out a better system" with Stewardship Ontario and the provincial
government.
It's also looking into listing the new eco fees on price tags and shelf
labels to make it more transparent, Arnett said.
The government gave Stewardship Ontario the power to collect fees to fund a
recycling program that diverts potentially hazardous items, such as fire
extinguishers, household cleaners and paint, from Ontario's landfills.
But there was no public warning that the eco fee, which was first introduced
in 2008, would be slapped on thousands of new items earlier this month.
Stewardship Ontario collects fees from retailers and manufacturers who, in
turn, determine the fees that they pass on to consumers.
The fee can be embedded in the product or the sticker price, which means in
some cases, shoppers won't know when or how much they're being charged.
Consumers, critics and some industry groups have been scratching their heads
about why certain items are subject to the levy, such as laundry detergent,
grass seed and environmentally friendly products that use natural
ingredients.
The fee furor has provided rich fodder for Ontario's opposition parties,
with the Progressive Conservatives promising to scrap the levy if they win
the 2011 provincial election.
Ontario's outspoken ombudsman Andre Marin is also looking into complaints
about the fees after the New Democrats asked him to intervene.
Canadian Tire's decision provides further evidence that Premier Dalton
McGuinty's "eco tax grab" - which hit consumers the same day the new 13 per
cent harmonized sales tax kicked in - has created chaos at the cash
register, said Opposition Leader Tim Hudak.
"Clearly, since this eco tax was brought in hidden behind the HST back on
Canada Day, it has been an absolute disaster and a tax increase Ontario
families cannot afford," he said.
Environment Minister John Gerretsen belatedly jumped into the fray last
week, firing off a scolding letter to Stewardship Ontario demanding that
they take "quick action" to stop customers from being overcharged.
He also mused in an interview about making legislative changes that would
allow the government to exert more control over the organization.
Stewardship Ontario wrote back two days later, saying it has no authority to
interfere in how retailers and manufacturers pass on the eco fees to
consumers.
"In the meantime, I would respectfully ask that the parties refrain from any
finger-pointing or accusations, especially in the media," CEO Gemma Zecchini
said in her July 15 letter to Gerretsen.
"Stewardship Ontario has an important program to operate that requires
consumer support if it is to meet its objectives and targets. Tarnishing the
reputation of Stewardship Ontario for problems not of its making and outside
of its power to remedy is unfair and undermines the objectives of waste
diversion in this province."
Zecchini's letter was obtained by the Opposition Conservatives, who passed
it out Monday to reporters.
Canadian Tire's decision to scrap the fees should be applauded, but Premier
Dalton McGuinty should have never allowed the industry to effectively
regulate itself with respect to the eco fees, said NDP Leader Andrea
Horwath.
"The McGuinty government dropped the ball, it's now up to the government to
pick up the pieces and ensure the companies that profit off this waste
should be responsible for getting rid of it - not their customers," she said
in a statement.
Asif Khan, Realtor
Re/Max All-Stars Realty Inc.
Google me: Asif Khan Re/Max
Follow me on Twitter Become a Fan on Facebook
Posted via email from Markham Real Estate Today with Asif Khan
