A Quebec law firm has proposed a class action lawsuit against Costco Canada alleging unfair pricing.
Perrier Attorneys says the retailer charged more for items online than in store, a practice known as “double ticketing”, which is prohibited under the Competition Act.
It also alleges that Costco provided false or misleading information about additional charges such as shipping fees. It claims the retailer did not inform customers that some items were available in store, leaving the impression that they were only sold online and at a higher price.
Ibrahim El Bechara, who is leading the case, highlights more than a dozen instances of price discrepancies on purchases he made in 2024 in the 17-page lawsuit filed Dec. 23.
For example, you purchased a blender online for $84.99, which sold for $5 less in the store. She also ordered an iron for $59.99 that sold for $49.99 at the store.
People in Canada who shopped at Costco through its app or website and paid a greater amount than what is displayed in the store for the same product since December 23, 2022 can join the lawsuit.
On its website, Costco says “it is true that the same item offered on Costco.ca and in-store may not sell for the same price.”
“Please note that Costco.ca does not match prices displayed in a Costco warehouse or vice versa,” he adds.
The lawsuit claims this is tantamount to admitting to double infringement.
Costco’s website also says that if an item is available online and in-store, the following message will appear on the item’s page on Costco.ca: “This item may be available at your local Costco warehouse for immediate purchase at cash and transportation”.
Bechara disputes that claim in his lawsuit.
Costco says the price difference is due to shipping and handling charges for home or business delivery. The lawsuit says that although the website showed that shipping and handling was free, the higher online prices were still misleading.
