Costco Canada Faces Class-Action Lawsuit for Alleged Overcharging
Costco Canada is currently facing a proposed class-action lawsuit over claims of overcharging its shoppers. The lawsuit alleges that the wholesale retailer charged higher prices for items on its website compared to in-store prices, a practice known as “double ticketing,” which is against the Competition Act.
The lawsuit, led by Quebec-based law firm Perrier Attorneys and Ibrahim El Bechara, points out several instances of alleged price differences on purchases made in 2024. For example, El Bechara purchased a blender online for $84.99 in July, only to find that the same blender was priced at $79.99 in-store.
On different occasions, such as on October 15, when he bought wool-blend socks online, he discovered that they were $4 cheaper in-store. Similarly, on November 5, when El Bechara purchased a vacuum sealer and food storage containers online, he realized they were $9 and $10 cheaper in-store, respectively.
Moreover, the lawsuit argues that the higher online prices were misleading, especially when the website displayed shipping and handling charges as $0. It also suggests that Costco failed to clearly inform customers that these items were available in-store at lower prices, potentially giving the impression that they were only sold online.
According to Canada.ca, double ticketing is considered a criminal offense, and offenders could face fines of up to $10,000 or imprisonment for up to one year. These regulations are in place to safeguard consumers from unclear or deceptive pricing practices.
As of now, Costco has not issued a statement in response to the allegations. Canadians who believe they have been affected by these pricing discrepancies can register online to receive updates and submit receipts as evidence. While registration is not mandatory, it can assist lawyers in building a stronger case by connecting with impacted customers. To register, individuals need to provide their contact information and details of their Costco purchases, including receipts, which can be uploaded for further proof.
