A number of our members have expressed discomfort with the promotion entitled "15% annual cashback on your commercial vehicle insurance" on Desjardins' website. This promotion is seen by some as a potential commission sharing practice. In response to these legitimate questions, we consulted a lawyer for expert advice on the matter.

Luc Jobin, an attorney with Tremblay Bois Mignault Lemay, reviewed the promotion and the "small print" specifying the conditions for taking advantage of this offer.

Commission sharing?

In Mr. Jobin's view, it would be difficult to state that the cashback offer constitutes commission sharing within the meaning of the Act Respecting the Distribution of Financial Products and Services. Indeed, Desjardins is promoting the 15% annual cashback as an exclusive benefit for its members.

Tied selling?

Mr. Jobin also looked into the possibility that this offer could be considered "tied selling". In fact, it would appear that this product is simply being sold under more favourable conditions, which is not illegal. The brokerage network also engages in this practice, according to Mr. Jobin. For example, members of an association (such as Quebec seniors who belong to FADOQ) or a club (like the Canadian Automobile Association) may qualify for certain discounts that do not constitute commission sharing or tied selling.

Based on the information received

Mr. Jobin concluded that at this point, based on the information received about Desjardins' cashback offer, it would be very difficult to prove that it constitutes commission sharing.

The RCCAQ stands by its members

Whether it's Desjardins' cashback offer or other issues affecting our industry, our team is always at the ready to ensure that you can get down to work with peace of mind. Please feel free to contact us if you have any questions or if you come across any business practices that raise any concerns. We will be sure to get back to you right away.