July 1, 2010, marked the introduction of the Harmonized Sales Tax in Ontario. At the same time, Ontario consumers were slapped with another, less-publicized, charge, the new “eco fee.” Diligent consumers noticed an additional charge on their bill after purchasing certain goods, including batteries, soap, and shower cleaners.

The Ontario government insists that the new “eco fee” is neither a tax nor a mandatory charge. The additional amount appearing on the bill actually comes from the fees charged by Stewardship Ontario, an industry organization mandated by the government and regulated under the Waste Diversion Act, 2002* to safely recycle hazardous materials and divert waste from the landfill.

Under the law, Stewardship Ontario is entitled to charge fees to cover the cost of developing, implementing, and operating the waste diversion program and no more. In fact, Stewardship Ontario published the fees on their website <http://www.stewardshipontario.ca/sites/default/files/StewardFees.pdf>.

For example, Stewardship Ontario charges $0.06 to recycle or dispose of an aerosol can, while one litre of insect repellent costs $0.23 to recycle.

However, some retailers are evidently overcharging consumers. According to the Toronto Star, a consumer paid some $4.03 for her $10.00 one-litre drive way cleaner. Surely the cost of recycling or disposing can’t account over 40% of the product retail price?

After checking her receipt, the shopper went back to the store and asked about the fee. She was rewarded with an apology and a refund.

Although the eco fee is not calculated as a percentage of the retail price, nor there is a standard fee for specific products, amidst the confusion evidently some retailers are overcharging their customers. CTV reported that at least one retailer charged $0.13 on a bottle of supposedly environmental friendly cleaner, greatly exceeding what Stewardship Ontario charges the retailer.

There’s definitely a lack of clarity in the program.

Today the provincial government sent out a stern message to Stewardship Ontario. Environment Minister John Gerretsen expressed his “serious concerns” with the overcharging of fees and the availability of accurate information related to the program. The minister also threatened to eliminate Stewardship Ontario’s ability to charge eco fees all together.

Let’s hope that further confusion will be limited during this transition period.

If you have questions regarding the eco fees payable on certain products, inquire with your retailers or contact Stewardship Ontario at 416-323-0101 or toll-free at 1-888-288-3360 during business hours.

*S.O. 2002, c. 6

Note: Please keep in mind that this article is provided for information and educational purposes. It does not constitute legal advice and should not be regarded as such. The law may have changed since the publication of the article.