On being … “free” food

By Ingrid Sapona 

In May I applied for a new credit card. I met the minimum financial thresholds to qualify for the card and applying on-line was easy. Within a week I had the new credit card. I wanted this particular card because it does not charge an additional fee on foreign purchases – you pay only the foreign exchange rate. My other cards charge a fee of 2-2.5% on top of the foreign exchange rate. So, even with an annual fee of $150 (waived the first year), given that I’ll be travelling overseas later this year, I’m sure the savings will cover the annual fee. 

The credit card is a VISA card and it’s co-branded with a rewards program called “Scene”, which I’ll explain about in a minute. Because the VISA card was issued by a bank I don’t regularly bank with, to get electronic statements I had to register on-line with that bank. During this on-line registration process, I inadvertently registered for a Scene membership. About a week later, a separate Scene card showed up in my mail and so I stuck it in my wallet and forgot about it. 

When Scene was launched years ago, the rewards were mainly free movie passes and popcorn at a cinema chain, so I never bothered registering for it. Last year a major grocery chain adopted the Scene rewards program. I shop there sometimes, but not regularly because their prices are always a bit high. I also find that often when they put items on sale (like coffee), they don’t stock extra – so they run out quickly. They’ll issue a rain check, but that’s time consuming and a hassle. And, since they’ve adopted the Scene program, I’ve noticed more and more of their specials are exclusively for Scene members, which just annoyed me more, causing me to shop there even less.  

Well, the first time I was checking out at that grocery store after getting the VISA card, when the clerk asked if I’ve got a Scene card, I wasn’t sure which she meant so I pulled out both cards. She scanned the Scene “member” card and asked if I would be paying with the Scene VISA card. I said yes, but I asked why I have two different cards. She explained that you get more rewards if I you scan the Scene member card and then pay with the Scene VISA card. Ok – whatever, is what I thought. 

The next time at that grocery store I was buying a $13.00 rotisserie chicken. After swiping my Scene member card the clerk said, “Oh, you have $10 in Scene points – do you want to use them?” I did and so my bill was reduced to $3.00. Wow, I thought… The same thing happened to me the next two times I shopped there. Most recently I was stocking up on coffee (using a rain check from a prior sale) and a few other things and my total bill was about $55. After swiping the Scene member card, I was invited to redeem $50 of Scene points! Jeez… Since I got the credit card and signed up for Scene membership, I’ve saved $90 on groceries. (I suspect these benefits might be some sort of sign-up bonus I wasn’t aware of.) 

I find these lavish windfalls troubling. Though I don’t mind saving money – these rewards come at a cost to all of that store’s customers. The high cost of groceries has been in the news a lot here. Earlier in the year grocery CEOs were called to testify about their business practices – everything from questions about price fixing to squeezing suppliers for better margins. The end result was the grocers agreeing to a code of conduct for fair and ethical dealing with respect to producers and suppliers.  

But, the grocers weren’t asked about the impact on overall grocery prices of special deals only certain customers can take advantage of. For example, it’s quite common these days for sale prices to apply only if you purchase multiple units of a given item. I get that such “deals” drive increased purchases, but they end up penalizing people who don’t have the money to make multiple purchases. Similarly, not everyone has enough income to qualify for special credit cards that offer cash-off bonuses, like that VISA card. 

At a time when food insecurity is at a crisis level – one in10 Torontonians rely on food banks to make ends meet – I would rather have grocers drop prices by a nickel across the board, instead of favouring certain shoppers or shopping habits. That would be fairer and better for all, I think. Meanwhile, to compensate for the “free” groceries I’ve received through the Scene program, I’ve donated the equivalent to the food bank. This small gesture, however, is just that – a gesture. Donations to food banks are a short-term solution. We need to raise our voices and urge grocers to treat all shoppers equally. In the end, society would be better off… 

© 2024 Ingrid Sapona