Posthaste: ‘Junk fees’ are hurting Canadians’ well-being, survey finds
Many Canadians are sick and tired of junk fees and it’s changing how they shop.
A new survey by electronic payments company Wise Payments Ltd. said 57 per cent of respondents have had their emotional well-being affected by junk or hidden fees, which are charges that aren’t clearly disclosed and then added at the time of purchase.
These fees are also impacting Canadians’ finances. The survey said 54 per cent believe junk fees are hurting their budgeting, while 48 per cent believe they are impacting their travel plans and 51 per cent said they have hurt their ability to save for a home.
“Canadians are under financial pressure and junk fees are only making things worse,” Brigit Carroll, senior policy and campaigns manager, Americas, at Wise, said in a news release.
Canada has been trying to crack down on junk fees and drip pricing. The federal government announced plans in its 2023 and 2024 budgets to eliminate nontransparent charges, specifically among airline carriers and telecom companies.
In September, the Competition Tribunal fined Cineplex Inc. $38.9 million after the movie theatre chain was accused of misleading customers by not disclosing a $1.50 booking fee when buying a ticket online. Cineplex said it will appeal the decision and has dropped the booking fee to $1.
SiriusXM Canada, meanwhile, reached a $3.3-million settlement with the Competition Bureau in June over its use of drip pricing.
In Quebec, Ticketmaster Entertainment LLC is facing a class-action lawsuit over its dynamic pricing model, where higher fees are charged for high-demand events.
These fees can come back to hurt the companies as well. Wise said 74 per cent of those surveyed have changed or will change the companies they use because of junk fees.
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