Consumers are raising concerns about a new trend by retailers and restaurants to round off prices to the nearest dollar, overcharging them for goods.
The trend has been reported to the Consumer Affairs Division and the division said it was not aware of any legal guidelines allowing businesses to charge consumers more than the stated cost of items.
Last week, Guardian reader Samantha* sent in a copy of her receipt for a $111.25 purchase she made at a popular food store.
Choosing to pay with her credit card, Samantha noticed that the outlet had charged her $112. When she queried the charge, she was told that the establishment was following the rules set out by the Central Bank, following the announcement of the discontinuation of one-cent pieces.
To Samantha, it did not't make sense. She felt that if she was paying with a card, it should not apply, and even if it did, why not round it off to the nearest five-cent piece as opposed to the next dollar.
Communications Manager at the Ministry of Trade Cassie Ann James looked at Samantha's receipt and in an emailed response to questions from the Guardian said the receipt submitted reflects that payment was made by VISA card.
"Paragraph 7(b) of the Central Bank Rounding Guidelines states that “Rounding will not apply…to payments made using non-cash methods such as cheques or electronic payments including, but not limited to, debit, credit or prepaid cards. Therefore it appears that rounding was not required for the particular transaction," James said.
James said the division had received a few complaints regarding the issue and those consumers were advised of the “Rounding Guidelines.”
"The concerns were raised primarily due to the absence of awareness that the procedure had been affected. The division subsequently sensitized those consumers and also made the information available on its Facebook page. This information is also included in its public lectures where possible," James said.
She said knowledge was power and consumers can protect themselves through education or seeking guidance from the Central Bank of Trinidad and Tobago or the Consumer Affairs Division at the Ministry of Trade and Industry.
Central Bank guidelines
Since July 1, the Central Bank ceased issuance of one-cent coins and announced that it intended to withdraw the one-cent coin from circulation and, in due course, the one-cent coin will no longer be legal tender.
Nicole Crooks, communications manager at Central Bank, responding to questions from the Guardian, said as a consequence of the Central Bank's decision, over time, there will be fewer coins in the system and price rounding on cash transactions would be required.
"When the one-cent coin is demonetized, regulations will be introduced to mandate and enforce rules on rounding. Until such time, these voluntary guidelines are intended to assist the public with the transition.
According to the Central Bank — "A vendor/consumer who wishes to round must obtain the agreement of the consumer/vendor before proceeding with the transaction or before applying the rounding guidelines.' This is to be adhered to during what the Central Bank states as the transition period defined as “…the period prior to the introduction of Regulations on rounding".
The rounding guideline provided by the Central Bank also advocates a system of rounding which makes the necessary adjustment on total cash payments both upwards and downwards in the absence of the one-cent coins.
In such circumstances, payments ending in 1 and 2 cents are to be rounded down to 0 cents; 3 and 4 cents rounded up to 5 cents; 6 and 7 cents down to 5 cents, and 8 and 9 cents rounded up to 10 cents.
The Central Bank has encouraged vendors and consumers to accept the rounding of the final amount of any cash payment or change owed in a consistent and transparent manner.
The Central Bank circular said the vendor must come to an agreement with the consumer prior to proceeding with any transaction.
In situations where a vendor wishes to round but the consumer does not agree, the vendor should provide exact change to the consumer.
The Central Bank also said that rounding should only apply to cash payments and to the total amount of the bill.
SITUATIONS WHERE ROUNDING WILL NOT APPLY
According to the Central Bank circular, rounding will not apply where a consumer has one-cent coins available and can tender the exact amount payable to the vendor in cash as the one-cent coin remains legal tender.
- To payments made using non-cash methods such as cheques or electronic payments including, but not limited to, debit, credit or prepaid cards.
-To individual prices of a good or service and, as such, prices on individual items need not to be changed; and
-To duties, taxes or charges, which are to be calculated in their exact amount prior to rounding.