Canadians who made purchases through Costco Canada’s website may qualify to participate in a proposed class-action lawsuit alleging pricing discrepancies between online and in-store products.
Allegations of “Double Ticketing”
The Quebec-based law firm Perrier Attorneys has filed the lawsuit, accusing Costco Wholesale Canada of charging higher prices online than in-store. This practice, referred to as “double ticketing,” violates section 54 of Canada’s Competition Act, according to the firm.
The lawsuit also alleges that Costco provided “false or misleading” information about online pricing and failed to notify customers that identical items were available in stores at lower prices.
“This class proceeding filed before the Federal Court is based firstly on allegations of double labelling concerning several products offered by the defendant Costco Wholesale Canada,” the firm stated on its website.
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The Case of Ibrahim El Bechara
The legal action was initiated by Ibrahim El Bechara, who claims he noticed price discrepancies after purchasing several items online.
According to court documents, El Bechara bought a blender on July 10, 2024, for $84.99 from Costco’s website, only to discover it was sold in-store for $79.99—$5 less.
In subsequent months, he purchased additional items online, including wool-blend socks, a vacuum sealer, and food storage containers. Each item was priced $4, $9, and $10 less, respectively, in Costco stores. Despite being charged no shipping or handling fees at checkout, the lawsuit argues these charges were misleading.
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Claims of Misleading Practices
The lawsuit contends that Costco failed to properly inform customers about the availability and pricing of products in stores.
“In the absence of this message, the consumer is entitled to assume that the product is only available online and is unaware that it could be purchased at a more advantageous price in-store,” the lawsuit argues.
It further claims Costco misled customers by implying that shipping and handling fees were included in the higher online prices, despite statements indicating these costs were $0.
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Costco Canada’s Sales Figures
As of January 8, 2025, Costco Wholesale Corporation reported net sales of $27.52 billion USD for December, including sales from the U.S., Canada, and other countries. Costco Canada has not yet commented on the lawsuit.
Who Is Eligible?
If certified, the lawsuit will include all Canadians who have purchased items through Costco’s website or app since December 23, 2022, and paid a higher price than the same items sold in stores.
The lawsuit seeks to:
- Stop Costco from charging higher prices online for identical in-store products.
- Reimburse customers for the price difference between online and in-store purchases.
- Award punitive damages for the alleged violations.
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What Should You Do Next?
Canadians who believe they are eligible can register online for class-action proceedings. While registration is not mandatory, it allows attorneys to communicate with potential class members about case updates and strengthen their case against Costco.
Important Notes:
- Registration does not constitute a compensation claim.
- If the lawsuit succeeds, a separate claims process will be established for compensation.
Participants are encouraged to submit supporting documentation, including receipts, along with their name, contact details, and other relevant information through the registration form.
For updates, affected individuals are encouraged to monitor announcements from Perrier Attorneys.
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