A Quebec shopper has proposed a class-action lawsuit against Costco alleging that the company is charging different prices online than in its retail locations.
Quebec man Ibrahim El Béchara said he purchased items from Costco online and then noticed they were cheaper at his local warehouse. Now, he’s launching a class action to recover the difference for himself and other customers, pay legal costs and get Costco to stop the practice.
The proposed class action motion has been filed in Federal court by Perrier Attorneys on behalf of El Béchara, who purchased a number of items including a Ninja blender for $84.99 and then noted at his local store in Laval, the price was $79.99. He continued to double check prices in-store and online and found several instances of different prices. Included in the class action proceeding is a chart of 7 products, including a Crockpot and Brita water jug with two filters that are $10 and $8 more online than they were in store.
According to the claim, this pricing is called double labelling or double ticketing and is banned under the Competition act. According to section 54, it states: “The Act prohibits double ticketing. This criminal offence happens when a consumer is charged the higher price between two or more prices clearly expressed in one of the following ways: on a product, its wrapper or container … on an in-store or other point-of-purchase display or advertisement.”
It doesn’t specifically mention online sale of products in that section.
“The provision in the law says: same product, same price or with a product you’re bound to sell at the lowest, price stated,” said Jocelyn Ouellette, a lawyer at Perrier Attorneys, who worked on the filing. “The word online isn’t in that section, but it doesn’t mean that it should not apply. We are confident that it includes all of those means and there shouldn’t be any difference between an online purchase and an in-store purchase.”
Anyone in Canada who bought items from Costco through its app or website and paid more than the price in-store for a product since Dec. 23, 2022 is eligible to register to join the lawsuit on the Perrier Attorney’s site.
” If it’s authorized and it moves along and goes forward, then it’s similar to a regular trial. It could take months. It could take years. We hope that it is quicker,” said Ouellette.
According to the claim, Costco does have a disclaimer explaining price differences online stating: “Why are prices different on Costco.ca and in-warehouse? It is true that the same item offered on Costco.ca and in-warehouse may not be sold at the same price. The difference is explained by the shipping and handling fees for home or business delivery. Please note that Costco.ca does not match prices displayed in a Costco warehouse or vice versa. “
The class action proceeding says that while Costco says the price difference may be due to shipping and handling charges, on several occasions those are free, which doesn’t explain the discrepancy in pricing.
The Star reached out to Costco media relations for comment but did not hear back by publication.
