Dec 13, 2024, 3:00 PM
Dec 13, 2024, 3:00 PM

Quebec court approves dollarama ecofees settlement, igniting public outrage

Provocative
Highlights
  • The Superior Court of Quebec approved a national class action settlement with Dollarama on December 3, 2024.
  • Consumers who bought products with Environmental Handling Fees from Dollarama during specific periods may qualify for compensation.
  • Dollarama agreed to pay $2.6 million and improve its pricing practices to enhance transparency for consumers.
Story

On December 3, 2024, the Superior Court of Quebec rendered its judgment approving the national class action settlement involving Dollarama, a major Canadian retailer. This ruling concerns consumers in Quebec who purchased products subject to Environmental Handling Fees (EHFs) between December 11, 2019 and July 4, 2023, as well as consumers in other parts of Canada who made similar purchases between April 29, 2021 and July 4, 2023. The class action was initially filed on May 29, 2023, due to allegations that Dollarama improperly advertised prices and charged higher total EHF amounts than displayed, violating consumer protection laws. As a result, Dollarama has allocated a Settlement Amount of $2,643,718.75. This fund will compensate approved claimants through Interac E-Transfers, with each approved claimant limited to one transfer of up to $10.00. Should the payout for each claimant be calculated at less than $3.00, the funds not distributed would instead be donated to charities recognized by the Court. Furthermore, the settlement has prompted Dollarama to voluntarily amend its pricing advertisement practices regarding Ecofee products to ensure compliance with the law, showing its willingness to improve transparency moving forward. Eligible claimants now can submit their claims through Concilia Services Inc. until February 14, 2025. The law firm involved in this case represents the interests of the claimants and will assist them in navigating the claims process. The implications of this ruling are significant, not only for the consumers awaiting compensation but also for Dollarama, which must adapt its business practices in response to this legal challenge. As consumer awareness regarding pricing and fees increases, the outcome of this case may set a precedent for how retailers across Canada handle EHFs and their pricing strategies in the future. This settlement marks a notable step towards consumer protection in Canada, emphasizing the importance of transparent pricing in retail. Moreover, it highlights the role of class action lawsuits in holding corporations accountable for their advertising and pricing practices, aiming to restore consumer trust in large retail companies.

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