Costco Canada Faces Proposed Class-Action Lawsuit Alleging Overcharging for Online Purchases

Costco Canada is under scrutiny after a proposed class-action lawsuit was filed, claiming the retailer overcharged customers for items purchased online compared to in-store prices. This legal action, led by Quebec-based Perrier Attorneys, alleges the company engaged in unfair pricing practices, violating Canada’s Competition Act.

The Allegations: Price Discrepancies and Misleading Information

The lawsuit, initiated by Ibrahim El Bechara, accuses Costco of “double ticketing,” a practice prohibited under Section 54 of the Competition Act. Double ticketing occurs when a product is advertised at two prices, but the retailer charges the higher one.

The legal filing highlights several instances where El Bechara purchased items online in 2024 at higher prices than those available in-store. For example:

A blender purchased online in July 2024 for $84.99 was priced at $79.99 in-store.
Wool-blend socks bought in October 2024 online cost $4 more than in-store.
In November 2024, a vacuum sealer and food storage containers were $9 and $10 cheaper, respectively, in-store.

In addition, while the Costco website listed shipping and handling fees as $0, the lawsuit claims these fees were misleadingly incorporated into the higher online prices. The retailer also failed to notify customers that the same items were available in stores at lower prices, potentially leading customers to believe the products were exclusive to the website.

Potential Legal Implications

According to Canada.ca, double ticketing is a criminal offence, punishable by fines of up to $10,000 or imprisonment for up to one year. The lawsuit also accuses Costco of violating other sections of the Competition Act by making false and misleading representations about its pricing practices.

If certified by a judge, the class-action lawsuit would include all Canadians who purchased items through Costco’s website or app since December 23, 2022, and paid higher prices online compared to in-store prices. The legal action seeks:

An injunction to stop Costco from charging more online than in stores.
Monetary compensation, including the difference between online and in-store prices.
Punitive damages for impacted customers.

What Costco Customers Should Know

Canadians who believe they’ve been affected can register online to join the lawsuit. While registration isn’t mandatory, it allows lawyers to connect with impacted customers and strengthens the case.

To register, you’ll need to provide:

Your contact information (name, email, phone number).
Details of your Costco purchases, including receipts.
Uploaded proof of transactions as supporting evidence.

Note: Registering does not automatically mean you will receive compensation. If the lawsuit succeeds, a separate claims process will be established.

Costco’s Response

As of now, Costco has not issued a public statement addressing the allegations. Legal experts note that the outcome of the case will depend on whether a judge certifies the lawsuit as a class action, allowing it to move forward in court.

Next Steps for Impacted Shoppers

If you believe you were overcharged for an online purchase, consider registering for the lawsuit through Perrier Attorneys’ website. The legal team will provide updates on the case and notify registered participants about any developments, including potential compensation processes.

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