The American giant Costco is the target of a class action which states that the Canadian branch would have sold certain products more expensive online than in its branches and thousands of Quebecers could be affected.
• Also read: Price higher online than in store: class action lawsuit filed against Costco in Canada
Customers of the mass distribution company would therefore have paid a higher amount when purchasing on the website or on the mobile application than that shown in store.
“What we criticize Costco for is practicing what we call double labeling,” said M.e Eric Perrier, lawyer at Perrier Avocats, in interview with LCN, Saturday.
His firm represents the class action plaintiff, Ibrahim El Bechara, who will appear in Federal Court.
“The competition law, a federal law, provides that when there are two prices displayed, the merchant must charge the lower of the two prices,” explained M.e Perrier. Costco, online or in store, it’s the same person. So, she must respect this law.”
Joël Lemay / Agence QMI
Who is included in this class action?
All Canadians who have made purchases on Costco’s website or mobile app since December 23, 2022 and paid more for items than expected would be eligible to claim an amount if the plaintiff wins their case, said the firm in the court document.
However, certain goods from the mass distribution chain would not be included in the class action, according to the law firm. For example, food and electronic items would be excluded from the list.
In theory, all other products would thus be covered by collective action.
“We mainly talk about clothes,” said M.e Perrier.
The plaintiff, Mr. Bechara, also allegedly purchased more expensive kitchen tools online than in stores.
“It affects a lot of products and services that we sell at Costco,” said the lawyer.
The situation could be complex for a good portion of people who purchased products that were more expensive than expected, but who did not keep the bill. The firm is trying to find a way to allow clients to receive a refund if Mr. Bechara wins his case.
“I think the file will progress, but we understand that a person who purchased a property more than two years ago does not have their invoice,” said M.e Perrier. On the other hand, sometimes, we make approximations in this type of file to [dédommager] consumers who have been affected by this prohibited practice.”
Watch the full interview in the video above.
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