Canadian consumers who have shopped on Costco Canada’s website may now be eligible to join a proposed Costco Canada class action lawsuit over alleged pricing discrepancies. The legal action claims Costco charged higher prices online compared to identical products available in stores, a practice that could violate Canadian competition laws.
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Allegations Against Costco Canada
The Quebec-based law firm Perrier Attorneys has initiated this class-action lawsuit, accusing Costco Wholesale Canada of engaging in a pricing practice known as double ticketing. According to section 54 of Canada’s Competition Act, double ticketing—charging a higher price than advertised or indicated—is prohibited.
The lawsuit also alleges Costco Canada:
- Provided false or misleading information about the pricing of online products.
- Failed to notify customers that the same items were available in-store at lower prices.
- Misrepresented shipping and handling fees as included in online prices, even though these costs were listed as $0 at checkout.
The legal filing by Perrier Attorneys states: “This class proceeding filed before the Federal Court is based firstly on allegations of double labelling concerning several products offered by the defendant Costco Wholesale Canada.”
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The Case That Sparked the Lawsuit
The lawsuit was initiated by Ibrahim El Bechara, a Costco customer who noticed pricing discrepancies after purchasing items online. Court documents reveal that El Bechara bought several products from Costco’s website, including:
- A blender on July 10, 2024, for $84.99, later found to be sold in-store for $79.99—a $5 difference.
- Wool-blend socks, priced $4 less in-store.
- A vacuum sealer, with a $9 price gap.
- Food storage containers, which were $10 cheaper in stores.
While El Bechara was not charged any shipping or handling fees at checkout, the lawsuit argues that these “misleading” fees were embedded in the higher online prices.
Claims of Misleading Practices
The lawsuit contends that Costco Canada failed to provide sufficient information to consumers about product pricing and availability. Specifically, it alleges:
- Lack of Transparency: Customers were not informed that identical products could be purchased in stores at lower prices. The lawsuit argues this omission led consumers to assume the products were only available online.
- Misrepresentation of Shipping Costs: Although shipping and handling fees were listed as $0, the higher online prices allegedly implied these fees were already included, misleading consumers about the true cost breakdown.
Costco Canada’s Financial Standing
As of January 8, 2025, Costco Wholesale Corporation reported net sales of $27.52 billion USD for December 2024, encompassing revenue from the U.S., Canada, and other markets. Despite the company’s strong financial performance, Costco Canada has not yet issued a public statement addressing the allegations.
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Who Is Eligible to Join the Class Action Lawsuit?
If certified, the lawsuit will include all Canadians who:
- Purchased items through Costco’s website or app since December 23, 2022.
- Paid higher prices for these items compared to their in-store equivalents.
The lawsuit seeks to achieve the following outcomes:
- Cease Online Pricing Discrepancies: Prevent Costco from charging higher prices online for items available in stores at lower prices.
- Reimburse Consumers: Refund the price differences to affected customers.
- Award Punitive Damages: Compensate for violations of Canadian competition laws.
Steps for Affected Consumers
Canadians who believe they are eligible can take the following actions:
- Register Online: Visit Perrier Attorneys’ website to register for class-action proceedings. While registration is not mandatory, it allows lawyers to provide updates and strengthens the case by showing widespread consumer impact.
- Gather Documentation: Collect and submit receipts or other proof of purchase, along with personal details such as your name and contact information.
- Monitor Case Updates: Stay informed by following announcements from Perrier Attorneys and other official sources.
Important Notes:
- Registration does not guarantee compensation.
- If the lawsuit succeeds, a separate claims process will be set up for eligible participants to seek reimbursement.
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Conclusion
The Costco Canada class action lawsuit highlights the importance of pricing transparency and fair consumer practices. If successful, the lawsuit could lead to significant changes in how Costco manages online and in-store pricing, benefiting consumers across the country. Canadians affected by the alleged pricing discrepancies are encouraged to register and stay informed about the case’s progress. For more information, consult Perrier Attorneys’ website and ensure your supporting documentation is ready.
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