Costco is being accused of overcharging Canadians who shop online and misleading them about shipping fees, according to a proposed class action lawsuit filed in Federal Court in Montreal.
The lawsuit claims Costco violated Canada’s Competition Act by charging higher prices for products sold on Costco.ca, compared to those in its warehouses and providing misleading info about shipping costs, reports the Montreal Gazette.
The suit claims Costco engaged in “double ticketing,” where two prices are shown for the same product, and the retailer charges the higher price. Under the Competition Act, businesses are supposed to sell at the lower advertised price.
Perrier Attorneys, which is representing the lawsuit, says Costco’s online pricing violates the Act.
Another part of the lawsuit claims Costco’s website misleads shoppers by showing $0 for shipping and handling during checkout, even though the higher online price effectively includes these fees.
Customers may believe they aren’t paying shipping charges when, in reality, they are. The suit also alleges that buying multiple quantities of the same item online means customers unknowingly pay the hidden shipping fees for each item.
The lawsuit points out that Costco’s website claims it will alert customers if a product is available at a lower price in a nearby store. However, the site does not consistently provide this information, which the lawsuit alleges is another violation of the Competition Act.
The class action’s representative plaintiff, Ibrahim El Bechara, said a blender he bought on Costco.ca was $5 cheaper in store. Previous items purchased online were also more expensive than at the warehouse, and showed free shipping.
The proposed class action, which must be approved by a judge, could include all Canadians who bought items on Costco’s website or app since December 23, 2022, and paid more than the in-store price. It seeks monetary compensation for affected customers and an injunction to stop Costco from charging higher prices online.
The online website also sells Apple products such as iPhones, iPads, Macs and more. We’ve seen during Black Friday pricing online match warehouses, but that’s only because Apple is usually fairly strict with resellers on setting prices online.
Costco’s website definitely has higher pricing online versus in-store, as shipping fees are bundled into each individual item. It will be interesting to see if this class action lawsuit gets certified or not. Costco.ca does have a price adjustment policy to issue you a credit if a price online drops within the past 30 days of purchase.
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That is the most annoying part of shopping online at Costco. It would tell you the price in store is lower, but would not say how much. They should show the in-store price and add shipping so consumers can decide whether to buy online and go in store.
This lawsuit is stupid, I’ve shopped at Costco in person and online for over a decade and have this fact about shopping between the two different fronts. This is a case of a stupid person who didn’t understand or read the way Costco online works and got upset about the price difference
It's the LAW.
I don’t really see the problem here. Costco has great deals and it does tell you if the item is available for cheaper in-store at a cash and carry price. I guess Costco could start charging for shipping instead, but that would make most items even more expensive. Plus many products are not marked up online and, if you’re paying attention, you can figure out which is which.
Costco has been a lifesaver for me over the past few years with inflation and corporate greed spiralling out of control. They are by far the cheapest place to shop for groceries and many other essential everyday items.
omg I love Costco, I go every week, but big items I buy online so I dont have to pack the car with 2 packs of Kirkland paper towels and bath tissues, it's easier to just get those delivered. But I agree, when it says prices could be cheaper in-store, they should tell you by how much. $32.99 for Kirkland Signature 2-ply Paper Towels online, but in store it's like 24$