Class-Action Lawsuit Accuses Costco Canada of Overcharging Online Customers

A Costco wholesale location is pictured in Ottawa on July 11, 2022. The Canadian Press/Sean Kilpatrick

A Quebec-based law firm is proposing a class-action lawsuit against Costco Canada, claiming unfair pricing practices for some online products.

Perrier Attorneys is alleging the wholesale retailer imposed higher prices for products sold online compared to those available in its stores, a practice referred to as “double ticketing,” which is illegal under Section 54 of the Competition Act.

The lawsuit filed in Federal Court on Dec. 23 claims Costco provided false or misleading information about extra costs like shipping fees.

The lawsuit, which is led by Ibrahim El Bechara, claims the retailer did not adequately inform customers that certain products were available for purchase in stores, inferring they were sold exclusively online at premium prices.

The document references price discrepancies in several purchases made by El Bechara last year.

The lawsuit alleges El Bechara purchased a flat-iron online for $59.99 that was sold for $49.99 in-store. He also bought a blender online for $84.99 that was $5 cheaper at the warehouse.

Other online price discrepancies include a vacuum sealer that was $9 cheaper, food storage containers that were $10 cheaper and wool-blend socks that were $4 cheaper in-store.

Canadian residents who made purchases through Costco’s app or website since Dec. 23, 2022 and paid more for products than what is displayed in-store are eligible to participate in the lawsuit.

The Epoch Times contacted Costco for comment but did not receive a reply prior to publication.

Costco’s website says it doesn’t price-match warehouse prices with online purchases.

“As you may already know, not all products sold on Costco.com are available at your local Costco warehouse,” the site says. “Also, products sold online may have different pricing than the same products sold at your local Costco warehouse.”

The retailer’s customer service page also says the site takes into account “shipping and handling fees not applicable to warehouse purchases.”

Costco’s website also indicates that when a product is available for purchase both online and in the warehouse, a message will be displayed beneath the item to inform customers of this availability. A number of products on Costco.ca come with this message: “Item may be available in your local warehouse, prices may vary.”

The lawsuit is seeking an injunction to compel Costco to cease the practice of charging higher prices for identical products sold online compared to those available in-store. It also seeks punitive damages and compensation for expenses incurred.

If the lawsuit receives certification, it will cover all Canadians who purchased items on Costco’s website or app since Dec. 23, 2022, and paid more than in-store pricing.

Canadians can register online for the class proceeding, although it is not a mandatory condition for participation, the legal firm said.

Registration enables the firm to “better establish the case against the defendant” as well as keep class members informed of developments in the case.

“Please note that this registration is not a claim for compensation,” the law firm added. “A separate claims process will be implemented if the action is successful on the merits.”

Those interested in registering must submit their Costco receipts, name, address, and contact information.