This is not business as usual': You may start seeing a COVID-19 surcharge on your receipts
TORONTO -- As small businesses begin the arduous task of reopening amid the ongoing coronavirus pandemic, some have opted to tack on a COVID-19 surcharge to their receipts in an effort to recoup funds spent on new sanitation and physical distancing measures.
The so-called "COVID fee" is designed to help cover the cost of personal protective equipment (PPE) for employees, increased sanitation measures, or income lost from reducing the number of customers a business is allowed to serve based on physical distancing measures.
Hair salons and restaurants are among the first to embrace the surcharge in provinces where they have been allowed to reopen, such as British Columbia, but experts warn it’s a delicate balance to strike at a time when consumers are wary about spending.
WHY IS THERE A COVID-19 SURCHARGE ON MY RECEIPT?
Transparency and credibility will also be a big issue for businesses who choose to adopt these surcharges.
As Dahl notes, surcharges are typically a temporary measure introduced to cover a sudden rise in cost, like those implemented by the airline industry, which became notorious for adopting a fuel surcharge when oil prices skyrocketed.
“Are businesses going to remove the COVID surcharge when they have paid off the investment that they need to make, or when we move into phase three? That’s an open question,” he said, noting that surcharges are often rolled into a company’s prices when they choose to do away with them.
David Soberman, professor of marketing at the Rotman School of Management at the University of Toronto, says there is a big issue of credibility for businesses who take this approach.
Soberman says any business that tacks on a surcharge must disclose the added fees upfront and clearly communicate those changes to customers.
“Transparency is not an option for a business — it’s an obligation,” he told CTVNews.ca by phone.
“Companies need to make it clear what consumers will be expected to pay before they engage the business. And if they don’t, I would go as far as to say they have every right to refuse to pay.”
RELATED IMAGES

A man gets a haircut at a hairdressing salon in Sevres, outside Paris, Monday, May 11, 2020. The French began leaving their homes and apartments for the first time in two months without permission slips as the country cautiously lifted its lockdown. Clothing stores, coiffures and other businesses large and small were reopening on Monday with strict precautions to keep the COVID-19 coronavirus at bay. (AP Photo/Christophe Ena)