Class-action lawsuit claims Costco Canada overcharging online shoppers

Costco is at the centre of a controversy that could lead to a big payday for customers.

A Quebec man has launched a class-action lawsuit against Costco Canada, alleging prices on several products are higher online than in-store.

According to Section 54 of Canada’s Competition Act, double ticketing or double labelling is when a product is given two prices and the consumer is charged the higher price between the two.

“In this case, the allegations and the class action relate to Costco having different pricing on its Costco.ca online site versus what it sells the same product for in its stores,” explains Daniel Tsai, a consumer rights activist.

In Canada, double ticketing is banned and according to the proposed class action filed by Perrier Attorneys, a Quebec man named Ibrahim El Béchara, documented several discrepancies between the prices of some items in Costco that were sold through the website or the app in relation with the prices advertised in store.

“We did some investigations, and we found out that it was a case for not all products, but many products from the ones that were in the motion that are stated in the motion, discrepancies were about $7, $8, $10,” said Jocelyn Ouellette, a lawyer with Perrier Attorneys.

Tsai predicts Costco Canada could make the argument that there is sufficient notice and acceptance from consumers that prices could be different in the warehouse due to this disclaimer seen on their website.

“The question here is the validity of notice is whether or not the consumers were aware of this disclaimer or had proper notice to be aware that the pricing is different on the online versus the warehouse and whether on a technical basis the legislation doesn’t make a distinction between online and the warehouse or being in the store in terms of the pricing,” said Tsai.

But Ouellette says this is a false and misleading representation from Costco Canada.

“On the website, it says that shipping and handling fees are included in the price. A client would be led to believe that oh well there’s no shipping and handling fees and it will be unknown to him that if you purchase the item in stores you would save money.”

According to the claim, which has not been tested in court, they are seeking an injunction to have Costco Canada change their practice and conform to the law as well as monetary compensation for their clients.

CityNews reached out to Costco Canada for comment but they have yet to respond.

Anyone in Canada who purchased items from Costco Canada either online or through the app from December 23, 2022, is eligible to join the lawsuit on the Perrier Attorneys website.