In Montreal, Dollarama Inc. has proposed a $2.5 million settlement in response to a class-action lawsuit, offering gift cards to customers who purchased products with an "eco fee" over the past few years.
The lawsuit, spearheaded by a plaintiff represented by Quebec-based law firm LPC Avocats, alleges that Dollarama failed to adequately display the prices of items subject to eco fees. Moreover, it claims that the retailer either charged a total price or eco fee higher than displayed or permitted by law for these products.
Eco fees, also known as environmental handling fees, are applied to various items like electronics, light bulbs, batteries, and toys to assist in recycling costs.
As part of the proposed settlement, Dollarama has proposed to provide gift cards valued at up to $15 to customers who purchased products with eco fees between May 29, 2021, and July 4, 2023. Additionally, customers who bought such items in Quebec between December 11, 2019, and July 4, 2023, may also be eligible.
The settlement is subject to approval by a court, with a hearing scheduled for April 9 to consider its validity before eligible consumers receive the gift cards.
Dollarama issued a statement clarifying that, akin to other retailers, it applies eco fees "where appropriate" and consistently displays these fees and prices separately. The company emphasizes that the proposed settlement does not imply any admission of liability or wrongdoing on its part.