Costco Canada is facing a proposed class-action lawsuit over allegedly charging its members higher prices for products bought online than in store.
Montreal-based law firm Perrier Attorneys filed the class action before the Federal Court last month, alleging Costco of “double ticketing” – which is a criminal offence and banned in Canada.
The class action denounces Costco Wholesale Canada Ltd. for allegedly “presenting false or misleading indications concerning the absence of other charges and the absence of indication during an online purchase to the effect that the product is also available in store.”
A statement filed in French on Dec. 23, 2024, by plaintiff Ibrahim El Bechara, listed alleged differences in prices found online and in store for several items.
For example, a 26-piece set of Glasslock food storage containers was priced at $44.99 online compared with the in-store price of $34.99, according to the court document.
In another example, Kirkland Signature’s 10-cup pitcher with two filters was priced at $31.99 online and in store it was $7 cheaper at $24.99.
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The law firm is proposing that a class member is anyone in Canada who, since Dec. 23, 2022, has purchased an item from Costco’s app or its website and paid more than the price displayed for that same item in Costco warehouses.
Customers who believe they’ve been impacted can register for the class proceeding by filling out a form, but it’s not mandatory for participation, the law firm says.
Global News reached out to Costco for comment on the allegations of “double ticketing” made in the lawsuit but did not receive a response before publication.
On its website, the company states that “products sold online may have different pricing than the same products sold at your local Costco warehouse.”
The company says it does not price match its warehouse prices for online purchases.
“Costco.com prices take into account shipping and handling fees not applicable to warehouse purchases,” it adds.
Canada’s Competition Act prohibits the practice of double ticketing.
The Competition Bureau Canada states that double ticketing happens when a consumer is charged the higher price between two or more prices clearly expressed on a product, on anything attached to it or on an in-store or other point-of-purchase display or advertisement.
The penalty for double ticketing is a fine of up to $10,000 and/or imprisonment of a maximum of one year on summary conviction.
The proposed class action against Costco Canada still has to be approved by the court.
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