It’s not every day a brand changes tax laws.

This work was created in response to Canada’s affordability crisis. Embracing our values of sustainability and affordability, IKEA saw an unfair tax policy not just as an opportunity to help consumers save, but to make change. This led to an earned idea that sparked the largest bipartisan tax law debate in recent years. We garnered coverage by top local and national outlets, including Canada's national public broadcaster, CBC Radio One. SHT became the most talked about local-market initiative in the history of IKEA Canada with +50M impressions, +250 earned stories globally.

Canada was hit with a nationwide affordability crisis in 2023. Housing affordability specifically, reached its worst level in history. This created heightened economic anxiety for millions of people who were struggling to meet the rising costs of living. As a result, the second-hand economy became a widespread choice for those seeking value. There was only one problem: a federal tax policy that was punishing Canadians for making sustainable choices.

Every time they buy a second-hand item, it gets taxed. Even though the tax was already paid the first time. Put simply, that’s paying tax on the same thing twice. For a country that is known as a global leader in sustainability, this was shocking. An outdated, and frankly, unfair tax policy was making it harder for Canadians to choose affordable and sustainable options, especially in one of the country’s most financially challenging times.

As a brand that’s committed to creating a better everyday life for the many people, IKEA knew this was a moment to reinforce its role as a leader in environmental stewardship and affordability by championing a more equitable approach to taxation. This work was a timely intervention that influenced progress in both business and culture and promoted systemic change – aligning with Canadians’ urgent demand for solutions that would have a tangible impact on their lives.

In Canada, a 13% federal tax called HST (Harmonized Sales Tax) is applied to every sales transaction. It’s a tax that’s been around since 1997, so it’s something no one thinks twice about. Until we discovered that buying second-hand means paying tax twice. Even though these items lose their original look, packaging, price, and value, they never lose the tax. Every new owner must pay the HST that was already paid the first time. This unfair double taxation generates a whopping $720 million for the federal government. Money that should rightfully be in Canadians’ pockets.

We needed to come up with creative that would capitalize on this moment and double down on IKEA’s commitment to affordability and sustainability. Within our As-is (second-hand) marketplace, we re-sell everything from gently used products to furniture. So, as a leading retailer of second-hand items ourselves, we had just one thing to say: SHT.

SHT (Second-Hand Tax) is a counter tax that effectively eliminates the unfair double tax on second-hand items. HST is 13% and SHT is -13%. Meaning, customers pay 0% tax on our As-is (second-hand) items.

At its core, the idea was designed with an inherent risk associated with it in order to earn attention from those affected by it (consumers) and those who hold the power to change it (government and business stakeholders). It was timely and urgent, loaded with tension and of course, surprising. But more than just a clever play on letters, SHT harmonized economic affordability with environmental sustainability. It offered a blueprint for how public policies can evolve to reflect collective interests and support sustainable consumer choices. Most of all, it was a catalyst to for real change that the whole country lobbied behind.

According to a 2023 IKEA report, 45% of Canadians were concerned with their finances. Many had turned to the second-hand economy to make the most of every dollar – with 31% having purchased second-hand items more than once a month. This shift in mindset challenged us to eliminate barriers to circular shopping. That’s when we uncovered the issue of double taxation on second-hand items, which led to the insight: Even though these items lose their original look, packaging, price, and value, they never lose the tax.

IKEA believes in caring for people and the planet. SHT does both.

We targeted as many Canadians as possible by starting within our organization and taking a leadership position on affecting the federal tax policy with government. To broaden awareness and ignite conversation and change, we conducted targeted media outreach across Canada to policy, sustainability, and general news publications, urging them to join us.

One day prior to launch, IKEA distributed digital letters to top federal and provincial stakeholders and existing partners, teasing out that SHT is coming.

On April 2nd, the beginning of Earth Month, open letters appeared in traditional print newspapers across top tier outlets read by Canadian business leaders: The Globe and Mail, Financial Post, Toronto Star and Ottawa Citizen. IKEA distributed a press release across the Canadian Newswire and conducted targeted pitching to gain awareness of the initiative, drive traffic to IKEA’s As-is (second-hand) marketplace, and spur action and petition signatures. We developed a radio chatter sheet with bite-sized messages for broadcast hosts to share that garnered significant traction within just two weeks of launch.

Throughout the remainder of Earth Month, we continued conducting outreach and landed top tier coverage as SHT gained momentum. Outlets encouraged their readers and listeners to sign the petition, demonstrating support for sustainability and affordability.

According to a 2023 IKEA report, 45% of Canadians were concerned with their finances. Many had turned to the second-hand economy to make the most of every dollar – with 31% having purchased second-hand items more than once a month. This shift in mindset challenged us to eliminate barriers to circular shopping. That’s when we uncovered the issue of double taxation on second-hand items, which led to the insight: Even though these items lose their original look, packaging, price, and value, they never lose the tax.

IKEA believes in caring for people and the planet. SHT does both.

We targeted as many Canadians as possible by starting within our organization and taking a leadership position on affecting the federal tax policy with government. To broaden awareness and ignite conversation and change, we conducted targeted media outreach across Canada to policy, sustainability, and general news publications, urging them to join us.

SHT was IKEA’s direct response to the current cultural and market conditions in Canada. It underscores the moment’s urgency – advocating for policy changes that progress with consumer’s immediate demand for more sustainable and affordable options. As cost-of-living pressures built, we adapted our strategic approach to the sales of our As-is (second-hand) items to help Canadians do more with less. By challenging the HST on second-hand items during Earth Month, IKEA tapped into a heightened national debate on waste reduction and sustainable consumption practices while positioning ourselves as a proactive leader in environmental stewardship and affordability in the Canadian market.