Costco Canada accused of overcharging online shoppers in class-action lawsuit

A Costco wholesale location is pictured in Ottawa on Monday, July 11, 2022. (Sean Kilpatrick/The Canadian Press)

A Quebec law firm has proposed a class-action lawsuit against Costco Canada alleging unfair pricing.

Perrier Attorneys says the retailer charged more for items online than in-store, a practice known as “double ticketing,” which is banned under the Competition Act.

It also alleges Costco provided false or misleading information about additional charges like shipping fees. It claims the retailer failed to inform customers some items were available in-store, giving the impression that they were only sold online — and at a higher price.

Ibrahim El Bechara, who is leading the case, highlights over a dozen instances of price discrepancies from purchases he made in 2024 in the 17-page lawsuit filed on Dec. 23.

For example, he purchased a blender online for $84.99, which was sold for $5 less in-store. He also ordered a flat-iron for $59.99 that was sold at $49.99 at the warehouse.

People in Canada who bought from Costco via its app or website and paid a greater amount than that displayed in-store for the same product since Dec. 23, 2022 can join the lawsuit.

On its website, Costco says “it’s true that the same item offered on Costco.ca and in the warehouse may not be sold at the same price.”

“Please note that Costco.ca does not match prices displayed in a Costco warehouse or vice versa,” it adds.

The lawsuit claims this amounts to admitting to double-ticketing.

Costco’s website also says that if an item is available online and in the warehouse, the following message will appear on the item page on Costco.ca: “This item may be available at your local Costco warehouse for immediate purchase at cash and carry.”

El Bechara contests that claim in his lawsuit.

Costco says the difference in prices is due to shipping and handling charges for home or business delivery. The lawsuit says though the website showed shipping and handling were free, the higher online prices were still misleading.