Proposed class-action lawsuit claims Costco Canada overcharged shoppers

Canadians who purchased products on Costco Canada’s website could be part of a class-action lawsuit against the wholesale retailer.

A proposed lawsuit filed by Quebec-based law firm Perrier Attorneys alleges that the retail giant charged customers more for online products than those sold in stores. This practice, called “double ticketing,” violates section 54 of the Competition Act.

“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,” reads the website.

The lawsuit also accuses Costco of “false or misleading” information regarding online charges and fails to inform customers that the same product is also available in-store.

Ibrahim El Bechara brought the lawsuit forward, and it is pending authorization.

According to the court documents (which are in French), on July 10, 2024, Bechara purchased a blender online for $84.99. He then noticed that the same blender was being sold at a Costco store for $79.99, or $5 less than he paid online.

In October and November, Bechara purchased other items from the website, including four pairs of wool-blend socks, a vacuum sealer and food storage containers. Each item was sold in stores for $4, $9, and $10 less, respectively, at a Costco store. However, upon checkout, the website stated that shipping and handling totalled $0.

The lawsuit argues that these are “false and misleading.”

“It is essential that the public be correctly informed as to whether or not they are paying shipping and handling charges,” reads the document. The proposed lawsuit also indicates that the retailer’s website fails to inform customers that items are immediately available in stores.

The lawsuit states that “in the absence of this message, the consumer is entitled to assume that the product is only available online and is unaware that it could be purchased at a more advantageous price in-store.”

On January 8, Costco Wholesale Corporation reported net sales of $27.52 billion USD for the retail month of December. This total includes sales in the U.S., Canada and other countries.

Costco Canada has been contacted for comment.

Are you eligible?

The lawsuit seeks an injunction ordering Costco to stop charging more for the same products online and in stores. It also seeks punitive damages and reimbursement “equal to the difference between the price of the same product sold simultaneously online and in stores.”

If the lawsuit is certified, it will include all Canadians who have made purchases on Costco’s website or app since December 23, 2022, and paid a higher price online than the prices in stores.

What should you do next?

You can register online for class proceedings. The step isn’t mandatory but allows litigators to communicate with class members about developments in the case and “better establish the case against the defendant.”

“Please note that this registration is not a claim for compensation. A separate claims process will be implemented if the action is successful on the merits,” stated lawyers.

In the registration form, you can submit your receipts, name, address and contact information, such as your phone number and email address.