In a proposed lawsuit, Costco Canada may have been caught red-handed — and with sticky fingers. A Québec law firm filed a class action lawsuit against the supermarket warehouse chain. The proposed suit alleges Costco unfairly charged online shoppers and offered misleading information about its shipping and handling protocol.
The suit’s attorney claims that Costco Canada’s prices for online items is more than the prices for the same items purchased in-store (there are already plenty of Costco items not worth the price). Canada’s Competition Act prohibits this price discrepancy, which is referred to as “double ticketing.” According to the law, double ticketing is when a retailer displays two different prices for one item and charges the higher cost. The law states that in double ticketing cases, retailers must sell the product to consumers at the lower price point. According to the suit, Costco revealed its double ticketing actions on its website, which stated: “Please note that Costco.ca does not match prices displayed in a Costco warehouse or vice versa.”
In addition to double ticketing, the proposed lawsuit also faults Costco for misleading customers regarding its shipping and handling practices. Costco’s website allegedly indicated shipping and handling fees were included in the price, but the hiked price itself could be considered payment for shipping and handling despite the checkout showing $0 for shipping and handling. If you were to buy multiple products this way, you could end up being overcharged for the delivery.
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The lawsuit is currently in the hands of Québec’s judicial system, where it is in the authorization stage. The authorization stage does not refer to the case’s validity — it means a judge must decide whether or not the case is truly a class action lawsuit. This means that the defendant, Costco Canada, cannot do much at this point in the proceedings to justify its actions.
This isn’t the first time the supermarket giant has been hit with a class action lawsuit. Former class action lawsuits filed against Costco contribute to the darker parts of its history. That doesn’t necessarily make it a bad place to pick up a can of your favorite tuna.
The proposed lawsuit, if deemed a class action, would include all Canadian Costco shoppers who purchased a product on the supermarket’s website or mobile app since December 23, 2022 and who paid the unfairly hiked prices. The lawsuit is asking for the company to settle its price disparities and damages to reimburse affected consumers.
