Overview of the Lawsuit

A law firm in Quebec has initiated a proposed class-action lawsuit against Costco Canada, charging the retail giant with unfair pricing practices. The firm, Perrier Attorneys, claims that the company has been engaging in a practice known as "double ticketing," where products are listed at higher prices online compared to their in-store counterparts. This behavior violates the Competition Act, according to the lawsuit.

Allegations Against Costco

The lawsuit also alleges that Costco misled customers regarding additional charges, such as shipping fees. Moreover, the argument is made that Costco did not adequately inform shoppers that certain items were available in stores, leading customers to believe they could only purchase these products online—and at elevated prices.

Attorney's Statement

Ibrahim El Bechara, the attorney spearheading this case, points to more than a dozen instances of price discrepancies he experienced during his purchases in 2024. In the 17-page legal document submitted on December 23, he cites examples such as an online purchase of a blender for $84.99, which was available for $5 less in-store, and a flat-iron he bought online for $59.99, while the warehouse offered it for $49.99.

Potential Class Members

Canadians who have made purchases through Costco’s app or website and paid more than the in-store prices for the same items since December 23, 2022, could potentially join the lawsuit. This move has sparked significant attention, as consumers are beginning to question the fairness of pricing practices among major retailers.

Costco's Response

In response to the lawsuit, Costco has acknowledged the price discrepancies on its website, stating, "It's true that the same item offered on Costco.ca and in the warehouse may not be sold at the same price." They further clarify, "Please note that Costco.ca does not match prices displayed in a Costco warehouse or vice versa," a declaration that some interpret as an implicit admission of the alleged double-ticketing.

Argument on Price Differences

Costco also claims that the price differences can be attributed to shipping and handling costs associated with home or business deliveries. However, the lawsuit counters this argument by claiming that despite indications of free shipping and handling, the elevated online prices remain misleading to consumers.

Implications and Consumer Behavior

As this lawsuit unfolds, many are left wondering: What will be the implications for Costco and other retailers regarding their pricing policies? Will shoppers be more vigilant in scrutinizing online prices? Stay tuned as this story develops!