Ontarians are frantically researching the WEEE (Waste Electrical and Electronic Equipment) program that will come into effect in the province as of April 1, 2009, and see manufacturers, brand owners, and first importers forking over 100% of the cost for recycling old devices. What's this all about?
Set up by the Ontario Electronic Stewardship (OES) organization (www.ontarioelectronicstewardship.ca), the program will include the development of several drop-off locations for used electronics, along with the recycling of various types of electronics. Phase 1, which begins on April 1, includes desktop and portable computers, computer peripherals, monitors, printers, fax machines, and TVs. Phase 2, which will be implemented a year later, will include phones, cameras, A/V equipment, and other similar gadgetry.
What most worry about, however, is how to work in the extra costs that will be incurred to fund the program. Brand owners, importers, assemblers, and franchisors will have to pay every cost associated with recycling their products, from collection to transport and processing. The cost per TV, for example, could run as high as $10 per unit. GST will be included so far, but PST will not. Will manufacturers and retailers pass these costs on to consumers, or absorb them through other means?
"The WEEE diversion program does not tell the companies that are obligated to pay fees on the designated products how to manage these costs," explains the OES. "It is up to the individual companies and their retail customers to make their own decisions. Some companies will internalize the cost, while others may charge consumers an environmental handling fee at the point of purchase."
With so many "green" friendly consumers out there, many should be more than happy to pay an extra $10 per TV or $13 per computer in order to contribute to saving the environment, right?
The OES is still working to develop the infrastructure and administrative requirements to operate the WEEE program; but those who wish to register now as stewards for Phase 1 of WEEE can do so at https://mtsreg.oesdatasystem.ca/login.aspx.
Subscribe to Blog
3 comments »
ausmo April 17, 2009, 19:43 pm
KADC, I was around for the implementation of these levies when they were introduced in British Columbia and was on the front line. Really, it was no trouble as most customers understood it just as they do a sales tax."Unenthusiastic" had nothing to do with it as we are professionals and it is all in a days work. The levies were very well advertised both by the government and with signage at the retail levels so there were no surprises for the consumer. I can also tell you it was not a deal breaker in any way. People continued to buy and were undeterred by the levy. The levies were regulated to be completely transparent on the invoice so concerns about keeping things "honest" were a non-issue. The levy in BC is not based on the selling price, it is based on the type and in some cases the size (TVs) of the product so rounding up price also is a non-issue. The levy is simply a way for all of us to take some level of responsibility for the reducing the impact of the long term effects of some of the choices we make.
KADC March 26, 2009, 17:55 pm
I disagree with ausmo. Any time a fee is levied on the consumer end it it met with suspicion, and particularly in the current economic climate, anything that might adversely affect consumer confidence in the retail market should be avoided. Additionally there would be the cost of explaining this new levy to consumers though in-store advertising, sales associates and cashiers, of which the latter two would first need need to be educated about the new policy, which is yet another cost that would need be recovered. Also, consider the adverse effect of misunderstanding or "unenthusiastic" front-line employees explaining this to customers in a negative manner. Retailers could attempt to hide the levy by simply raising the retail price of their merchandise to collect the cost of this new fee; however, they would no-doubt find themselves "undercut" by competitors adding the fee at the cash register, so that's a doomed scenario. The retailer/manufacturer relationship is the best place to manage this program as it will prevent the negative situations described above, as well as keep the cost of managing this program "honest", as certainly some retailers might be inclined to "round up" costs in an effort to increase profits, and even a single retailer doing this, once news of it hits the media, could have disastrous consequences for the entire industry.
ausmo March 18, 2009, 23:11 pm
These levys should be applied at the end user sale level like they are in BC. The fees are pretty lightwieght compared to those currently collected in BC
Leave a comment
Add your comment below
Please Note: by adding your comments you signify that you agree to the terms of our Code of Conduct.
You must be logged in to leave a comment. Not a Member? Sign up