Class-Action Lawsuit Alleges Costco Canada Overcharges Online Shoppers
A Quebec law firm has filed a proposed class-action lawsuit against Costco Canada, accusing the retailer of engaging in unfair pricing practices.
Perrier Attorneys alleges that Costco charged higher prices for items sold online compared to those available in-store, a practice referred to as “double ticketing,” which is prohibited under the Competition Act.
The lawsuit further claims that Costco provided false or misleading information about additional charges such as shipping fees. It argues that the retailer failed to inform customers that some items were also available in-store, creating the false impression they were exclusively sold online at higher prices.
Ibrahim El Bechara, the lead plaintiff in the case, cites over a dozen examples of price discrepancies from his purchases in 2024, outlined in the 17-page legal filing submitted on December 23.
In one instance, El Bechara bought a blender online for $84.99, while the same item was sold for $79.99 in-store. Similarly, a flat iron he purchased online for $59.99 was available for $49.99 at a Costco warehouse.
The proposed lawsuit invites Canadians who purchased items from Costco’s website or app at higher prices than those displayed in-store since December 23, 2022, to join the case.
Costco’s website acknowledges potential price differences, stating:
“It’s true that the same item offered on Costco.ca and in the warehouse may not be sold at the same price.”
The site also clarifies:
“Please note that Costco.ca does not match prices displayed in a Costco warehouse or vice versa.”
The lawsuit contends that these statements amount to an admission of double ticketing.
Costco also claims that price differences result from shipping and handling fees for home or business delivery. However, the lawsuit argues that despite labeling shipping and handling as “free” on its website, the higher online prices were still misleading.
El Bechara further disputes Costco’s claim that products available both online and in-store are marked with a disclaimer on the website, stating:
“This item may be available at your local Costco warehouse for immediate purchase at cash and carry.”
The case highlights ongoing concerns about transparency in e-commerce pricing and consumer protection.
