Quebec court approves $2.5M settlement in Dollarama eco fees class action

The Superior Court of Quebec has approved a $2.5-million settlement in a class action targeting Dollarama Inc.’s use of eco fees.

Environmental handling fees, sometimes called eco fees, are charged by retailers like Dollarama on items like electronics, light bulbs, batteries and toys in order to help with the cost of recycling.

A plaintiff represented by Quebec law firm LPC Avocats alleged Dollarama did not properly display the price of products subject to eco fees and charged a total price or eco fee higher than displayed for these products or allowed by law.

As part of the approved settlement, Dollarama does not have to admit wrongdoing but will fund Interac e-transfers between $3 and $10 for affected shoppers.

Customers who purchased products with eco fees from the retailer between May 29, 2021, and July 4, 2023, are eligible for the e-transfer.

Those who bought products subject to the fees in Quebec between Dec. 11, 2019, and July 4, 2023, are also eligible.

“Dollarama and class counsel have agreed to settle the claim related to our price display practices for applicable products where eco fees need to be collected,” the company said in a statement.

“Just like all other retailers, Dollarama charges for eco fees where appropriate, but given our fixed product price points, we displayed our retail price and eco fee separately.”

This report by The Canadian Press was first published Dec. 11, 2024.

Companies in this story: (TSX:DOL)

Tara Deschamps, The Canadian Press