Québec Consumer Protection Act: Complete Price Disclosure and Class Actions

A first motion for leave to launch a class action was filed on July 16, 2010 in Montréal on the basis of the failure of a vendor to disclose in its advertisement the complete price of goods or services offered as required by section 224 c) of Québec's Consumer Protection Act.

The motion was filed by Union des consommateurs du Québec against Air Canada and proposes that the action cover all residents of the province of Québec who have purchased tickets directly from Air Canada since June 30 (the date on which Bill 60 came into force).

The motion alleges that Air Canada failed to disclose the complete price of its tickets in its paper and electronic advertisements as well as on its website. More particularly, the motion claims that additional charges such as airport improvement fees and 9/11 security charges are added to the advertised prices.

The conclusions sought in the proposed class action include the reimbursement of all fees and charges paid beyond the advertised price (other than the QST, GST, and any additional options added by the consumer) and the payment of $100 in punitive damages for each affected consumer.

Furthermore, the Union's action extends to all tickets sold by Air Canada through these advertisements, regardless of the airline that actually operates these flights (i.e. Air Canada, its subsidiaries, or its Star Alliance partners).

In sum, despite representatives of the Consumer Protection Office having asserted to certain OEM and retailers' associations that they would not aggressively enforce the Bill 60 measures for the first few months, no transition period exists. Consumers and other organizations may launch individual claims and ensure that advertisers comply now.