How to stop the ripoff of consumers
I have recently been thinking about the ways consumers are being tricked by banks and large retailers, and what our elected representatives could do about it. The following is a letter I have sent to 6 politicians representing Canada's major political parties:
"These days, consumers are more and more concerned with getting value for their money. Someone who buys a $96 item would be enraged to be forced to pay $100 for it. But that is what happens when it is a credit card transaction. The item is priced at $100, but when it is paid for by credit card, the card company takes 4%; the retailer only gets $96. Percentages vary: one card company is reputed to charge 6%.
It would be reasonable that retailers give cash customers the benefit of the difference between a cash and a credit card purchase, but the card companies prohibit this in their contracts with the retailers. THIS IS WRONG!
We need legislation requiring that the price of every good be stated in cash money and that if another method of payment is accepted, then the cost of that transaction method shall be added to the bill.
Another way consumers are being skinned is through giveaways such as Air Miles, points and Scratch-and-win cards. Someone buying groceries is forced to pay for these things whether they want them or not.
We need laws requiring that such "extras" have a cost which is added to the cash price of the merchandise, and that the consumer be allowed to refuse these items and pay less. To ensure that the specified price of these things is realistic, the consumer should be allowed to buy large amounts of Air Miles, points or other "gifts" at that cost.
Stores should be prohibited from giving lower prices only to customers who carry loyalty cards. Why should a consumer be forced to give a store his name, phone number and address (or lie about it) just to pay a fair price for a jug of milk? This invasion of privacy wastes everybody's time, driving up costs and prices. It can easily be stopped, and it should be.
Why is there not a public outcry about these issues? One reason is that, as someone once said, "There's a sucker born every minute." Many Canadians are naive enough to think they are getting something for nothing when they are, in fact, being slyly swindled.
Another reason is that we think nothing can be done about it. We have lost faith in democracy. We don't believe that our elected leaders care enough about Canadians to pass legislation to FIX these problems. Our MPs would not buck "the establishment" of banks and large retailers.
Billions are being skimmed from consumers every year, and government has the power to stop it. You, and your party, have been elected to parliament and given the power to enact, or at least propose, legislation that will benefit us all. With your leadership, you can see that every Canadian gets better value for their dollars."
"These days, consumers are more and more concerned with getting value for their money. Someone who buys a $96 item would be enraged to be forced to pay $100 for it. But that is what happens when it is a credit card transaction. The item is priced at $100, but when it is paid for by credit card, the card company takes 4%; the retailer only gets $96. Percentages vary: one card company is reputed to charge 6%.
It would be reasonable that retailers give cash customers the benefit of the difference between a cash and a credit card purchase, but the card companies prohibit this in their contracts with the retailers. THIS IS WRONG!
We need legislation requiring that the price of every good be stated in cash money and that if another method of payment is accepted, then the cost of that transaction method shall be added to the bill.
Another way consumers are being skinned is through giveaways such as Air Miles, points and Scratch-and-win cards. Someone buying groceries is forced to pay for these things whether they want them or not.
We need laws requiring that such "extras" have a cost which is added to the cash price of the merchandise, and that the consumer be allowed to refuse these items and pay less. To ensure that the specified price of these things is realistic, the consumer should be allowed to buy large amounts of Air Miles, points or other "gifts" at that cost.
Stores should be prohibited from giving lower prices only to customers who carry loyalty cards. Why should a consumer be forced to give a store his name, phone number and address (or lie about it) just to pay a fair price for a jug of milk? This invasion of privacy wastes everybody's time, driving up costs and prices. It can easily be stopped, and it should be.
Why is there not a public outcry about these issues? One reason is that, as someone once said, "There's a sucker born every minute." Many Canadians are naive enough to think they are getting something for nothing when they are, in fact, being slyly swindled.
Another reason is that we think nothing can be done about it. We have lost faith in democracy. We don't believe that our elected leaders care enough about Canadians to pass legislation to FIX these problems. Our MPs would not buck "the establishment" of banks and large retailers.
Billions are being skimmed from consumers every year, and government has the power to stop it. You, and your party, have been elected to parliament and given the power to enact, or at least propose, legislation that will benefit us all. With your leadership, you can see that every Canadian gets better value for their dollars."
Labels: Air Miles, credit cards
posted by Ken Erickson at 9:12 PM
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