$2.5M settlement reached in Dollorama class action

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Dollarama settlement overview: 

• Who: Dollarama reached a $2.5 million settlement in a class action that customers filed over the way the company displays prices for electronics.
• Why: The plaintiffs argued that Dollarama placed prices in a large bold font but added the Environmental Handling Fee (EHF) in a small font.
• Where: The Dollarama pricing settlement was reached in Montréal, Québec.

A $2.5 million settlement in a Dollarama class action resolves claims customers made about the company’s practice of boldly displaying electronics prices without including the Environmental Handling Fee.

Customers will receive up to $15 in electronic gift cards if they purchased EHF-eligible electronics at the store, but must register for the claims process ahead of an April 5 deadline. The gift cards will be issued within 60 days of the Dollarama pricing claim form deadline.

If the settlement is approved, those who register will be notified by e-mail when the claim form is available.

The Québec Consumer Protection Act requires retailers to display the full price of products, including the EHF.

The class includes those who purchased electronics subject to EHF in Canada between May 29, 2021, and July 4, 2023, and those who purchased the products in Quebec between Dec. 11, 2019, and July 4, 2023.

Dollarama pricing practices changed after lawsuit, class counsel claims

Consumers were represented by Montreal-based LPC Avocats Inc., which announced the settlement. An approval hearing for the settlement is set for April 9.

“Just a couple of days after the lawsuit was filed, Dollarama immediately modified its practice nationwide,” class counsel Joey Zukran of LPC Avocats told CBC News about the Dollarama class action.

A memo went to store managers, supervisors, territory managers and operations managers in Québec on June 13, 2023, asking all to display total prices including EHF prominently, the settlement says.

A similar memorandum was sent on June 23, 2023, to managers in Alberta, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island, Saskatchewan and Yukon. On July 4, 2023, it was sent to managers in British Columbia.

Class counsel is set to receive $825,000 plus fees.

Numerous Canadian automotive parts manufacturers agreed to pay a combined $53.2 million settlement with a revised claim deadline of March 8 to resolve claims they conspired to raise and fix the price of auto parts.

Have you purchased electronics from Dollarama? Let us know in the comments.

The plaintiff is represented by Joey Zukran of LPC Avocats Inc. The defendant is represented by Claude Marseille of Blake, Cassels and Graydon LLP.

The Dollarama pricing class action lawsuit is Ohayon v. Dollarama SEC, et al., Case No. 500-06-001243-233, in the Superior Court for the Province of Québec District of Montréal.

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