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Ica under fire for sidelining smokers

The ICA grocery chain may be running afoul of Sweden’s consumer protection laws after a manager in southern Sweden implemented a new policy regarding ICA’s bonus card programme.

Ica under fire for sidelining smokers

“For every krona you spend, ICA or Statoil gives you a 1 percent bonus,” reads ICA’s website.

But contrary to the website’s claim, purchasers of tobacco products at an ICA in Ängelholm will not be able to accumulate bonus awards in the same way as shoppers of other products.

“I don’t think it is right to give bonus points for something which is unhealthy,” the store manager said to the Helsingborgs Dagblad newspaper.

When first contacted about matter, spokesperson Emma Månson did not see any discrepancy between the manger’s new policy and the language on ICA’s website.

“Tobacco products should give a bonus but it is up to each individual store. Some stores have decided not to give bonus points because of health concerns,” she told The Local.

Månson added that, as ICA’s stores operated as manager-owned franchises, managers have the right to make decisions regarding how each individual store operates.

But according to the Swedish Consumer Agency (Konsumentverket), since ICA’s corporate parent issues the bonus cards, it sets the terms and conditions for the programme, not the individual stores.

As a result, all ICA stores must have the same policy, according to Swedish law.

“The website is attracting customers by misleading them. ICA is not permitted to publish such information on their website and then say that is up to each individual store, this can be considered illegal,” said Mattias Grundström, a lawyer with the agency.

When confronted with the possibility that the ICA manager may have broken the law in setting the policy, Månson had no direct comment on the matter.

“The bonus card system is currently under discussion,” she said.

Grundström from Konsumentverket couldn’t say whether or not the agency would launch a formal investigation into the matter at this time.

“That depends on how many reports we receive,” he said.

FOOD AND DRINK

OPINION: Are tips in Sweden becoming the norm?

Should you tip in Sweden? Habits are changing fast thanks to new technology and a hard-pressed restaurant trade, writes James Savage.

OPINION: Are tips in Sweden becoming the norm?

The Local’s guide to tipping in Sweden is clear: tip for good service if you want to, but don’t feel the pressure: where servers in the US, for instance, rely on tips to live, waiters in Sweden have collectively bargained salaries with long vacations and generous benefits. 

But there are signs that this is changing, and the change is being accelerated by card machines. Now, many machines offer three preset gratuity percentages, usually starting with five percent and going up to fifteen or twenty. Previously they just asked the customer to fill in the total amount they wanted to pay.

This subtle change to a user interface sends a not-so-subtle message to customers: that tipping is expected and that most people are probably doing it. The button for not tipping is either a large-lettered ‘No Tip’ or a more subtle ‘Fortsätt’ or ‘Continue’ (it turns out you can continue without selecting a tip amount, but it’s not immediately clear to the user). 

I’ll confess, when I was first presented with this I was mildly irked: I usually tip if I’ve had table service, but waiting staff are treated as professionals and paid properly, guaranteed by deals with unions; menu prices are correspondingly high. The tip was a genuine token of appreciation.

But when I tweeted something to this effect (a tweet that went strangely viral), the responses I got made me think. Many people pointed out that the restaurant trade in Sweden is under enormous pressure, with rising costs, the after-effects of Covid and difficulties recruiting. And as Sweden has become more cosmopolitain, adding ten percent to the bill comes naturally to many.

Boulebar, a restaurant and bar chain with branches around Sweden and Denmark, had a longstanding policy of not accepting tips at all, reasoning that they were outdated and put diners in an uncomfortable position. But in 2021 CEO Henrik Kruse decided to change tack:

“It was a purely financial decision. We were under pressure due to Covid, and we had to keep wages down, so bringing back tips was the solution,” he said, adding that he has a collective agreement and staff also get a union bargained salary, before tips.

Yet for Kruse the new machines, with their pre-set tipping percentages, take things too far:

“We don’t use it, because it makes it even clearer that you’re asking for money. The guest should feel free not to tip. It’s more important for us that the guest feels free to tell people they’re satisfied.”

But for those restaurants that have adopted the new interfaces, the effect has been dramatic. Card processing company Kassacentralen, which was one of the first to launch this feature in Sweden, told Svenska Dagbladet this week that the feature had led to tips for the average establishment doubling, with some places seeing them rise six-fold.

Even unions are relaxed about tipping these days, perhaps understanding that they’re a significant extra income for their members. Union representatives have often in the past spoken out against tipping, arguing that the practice is demeaning to staff and that tips were spread unevenly, with staff in cafés or fast food joints getting nothing at all. But when I called the Swedish Hotel and Restaurant Union (HRF), a spokesman said that the union had no view on the practice, and it was a matter for staff, business owners and customers to decide.

So is tipping now expected in Sweden? The old advice probably still stands; waiters are still not as reliant on tips as staff in many other countries, so a lavish tip is not necessary. But as Swedes start to tip more generously, you might stick out if you leave nothing at all.

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