Unhappy customers in Canada

Perhaps we do not realize being a happy shareholder also means being an unhappy customer. If it becomes harder to make a dollar for many businesses, things could get worse as businesses attempt to squeeze more out of customers while giving less- all in the name of meeting shareholder expectations.

What’s a poor customer to do?

1. Beware the problem industries. Gym memberships, gift cards, travel, extended warranties, gift cards and cell phone contracts all have specific sections of various consumer protection acts addressing these products or industries for a reason; there are many unscrupulous people in these industries- watch out. There are also industries which are unregulated or unlicensed that need to be licensed- home contractors comes to mind immediately. Be very cautious and detailed about dealing in these products or industries (if you are wondering about consumer protection and cell phones, the Province of Quebec’s revised Consumer Protection Act (Bill 60) prohibits punitive penalties from being charged for early termination of long term contracts. There’s a possible constitutional issue in that telecommunications are federally regulated and this provincial act may be challenged. However, if it survives a possible legal challenge- this could be a huge win for consumers if adopted by other jurisdictions).
2. Verbal Agreements mean nothing if you are dealing with big business. As Mike from Four Pillars found out, a verbal agreement with a cell phone provider is not worth very much. Run if someone says “trust me” (as I have written many times, someone who is trustworthy doesn’t say “trust me”). In the world of big business, rely on the paper which brings me to…
3. Read the fine print. If the salesperson will not let you read the fine print (a very common tactic in car dealerships), it is being done a reason. The fine print is not very favorable to you. If you don’t understand the fine print, ask. The larger the purchase, the more the salesperson should know the terms and conditions. If they try to blow you off pre-purchase, well…we know what post-purchase life will be like.
4. Do your research. Sounds simple but in an age of information over-load it is easy to gloss the details. This is the fundamental advantage of the internet. There’s always a fanatic who will review a product or service in-depth.
5. Do not allow yourself to be brow beat or bullied into a deal. The best answer a salesperson can get is “yes.” The next best answer is a “no”. The worst answer is “let me think about it.” Good salespeople understand this and will engage in a variety of tactics (create the illusion of scarcity of supply or time being a common one) to get to yes or no quickly. If you are buying something which you don’t need but want and you are feeling rushed into a decision, step back and sleep on it. Look at it this way, if the salesperson is rushing you to buy, what do you think the post purchase service will be like if they had so little time for you before you parted with your money?

I also pause twice when things are super cheap. In order to turn a profit on a super cheap product, the business has to either (i) make an inferior product which won’t last; or (ii) provide no after purchase service. This is how the cell phone business model works. They give you the phone for cheap or free and, in return, you are not supposed to bother them with problems (at least that’s how many customer service departments are built).

Finally, I am not very Obama-esque that government is the solution to consumer protection issues. Elections are not won or loss on consumer protection. The issue is that it is easy to pass laws for show but are there any resources to actually enforce them? For example, several years ago, many jurisdictions passed franchise protection laws. The problem is that there is no department of franchise protection and franchisee had to sue to enforce their rights. The practical issue is that most franchisees who have been victims of sharp business practices of franchisor’s have no money to hire a lawyer.

Thus, don’t rely on anyone to protect your rights other than yourself.

Legal disclaimer: This personal blog is for informational purposes only and nothing discussed or written on this site should be considered to be financial, legal or accounting advice of any kind whatsoever. Please speak to a qualified professional before taking any actions.