Big-Mart makes its suppliers an offer they can't refuse

by Jay Arthur

I'm sure everyone recalls the concern about the sudden appearance of the "voluntary steward" concept in Stewardship Ontario's blue box program plan. PPSReview covered it some time last year, I believe (PPSReview, June 2003--editor).
The big worry then was that recycling levies would be passed on to material suppliers by big brand owners, using their marketplace clout.
Well, the environment minister made some comments recently which suggest this whole voluntary thing is on hold for a while, but if you ever needed evidence about what can happen, you just need to look at a little note that one company, whom we shall refer to as Big-Mart, sent out in the spring.
Talking of marketplace clout,  three months ago, the company's suppliers received a  "Notice to All Vendors".
In the letter, Big-Mart's manager of environmental affairs told those who sell goods through the discount retailer about the Waste Diversion Act and its intention of having producers be responsible for a share of the cost of managing Ontario's recycling programs.
It referred to the Stewardship Ontario website and told them what to do if they are considered stewards under the terms of the Waste Diversion Act. If they concluded that they were obligated, they were requested to complete a form: the Confirmation of Steward Registration Form, and to mail it in immediately.
Conversely, for those who were not considered stewards and were thus not obligated, Big-Mart tells them they could elect to be stewards, which would mean someone else, like Big-Mart, would not be considered the steward and would not have to pay the fees. Now, depending on their level of sales, said the letter, these voluntary stewards may not have to pay anything however, because of the de minimus rule.
The rules, it was noted, "contain an exemption for stewards whose Ontario sales (not solely in Big-Mart locations) are less than $2 million."
Are you still with me? No? Well, pay attention because this is tricky. Here it is again. Even if you were not considered obligated to pay the fees, you could elect to be obligated, but you may not actually have had to pay anything if you sold less then $2 million worth of goods. And, of course, no one else--Big-Mart, for example--would have to pay, either.
So, rather than have the obligated party--Big-Mart, for example--pay the fee, you lean on your supplier to pay it. And

for those whose sales are small enough, you tell them it's their lucky day because they may not have to pay! Of course, this is not so lucky for the other poor stewards who have to raise the 50-cent dollars to support Ontario's recycling program.
Anyway, back to the Big-Mart bureaucracy.
Now, if you did elect to be a steward, you had to complete a different form. The Confirmation of Steward Election Form was attached to the letter (and not to be confused with the Confirmation of Steward Registration Form) It had to be returned "as soon as possible" and in any event, by no later than April 9, 2004.  The letter was sent by Big-Mart on April 1. Somewhere between then and April 9 was a weekend.
No pressure, guys.
So, you could recognize you were obligated to pay and fill in a form, or you could elect to pay and fill in another form. It didn't say what you did if you were not obligated and chose not to elect to become obligated, thank you very much. There was no reference to any form for that.
Indeed, the letter warned vendors that if they didn't send in one or other of the forms, "Big-Mart will include products purchased from you in its filing, as applicable, and will bill the corresponding amounts back to you."
It gets better.
"In any event, all vendors are to complete the attached Product Description Form in respect to all of the products you sell to Big-Mart Canada Corp. and return it to me by no later than April 9, 2004."
Again, no pressure.
Oh, by the way… "Any fines, penalties, costs or expenses incurred by Big-Mart as a result of the information provided from you in the attached will be billed to you by Big-Mart."
Oh, and they also had to fill out a  questionnaire and have an officer of the company with signing authority complete and return the Vendor Product Information Accuracy Statement Form, too.
And just one more thing. They also had to fill out an Excel spreadsheet "with all of the product information for ALL products that you sell to Big-Mart Canada Corp." 
"Please complete all of the above by the end of business Friday, April 9, 2004."

No pressure.