Dollarama Class-Action Lawsuit Settlement Over Eco Fees What You Need to Know

If you’ve shopped at Dollarama and purchased products like batteries, electronics, light bulbs, or toys with batteries, you may be eligible for compensation from a recently approved class-action settlement. This case, involving undisclosed environmental handling fees (eco fees), has led to a $2.6 million settlement for Canadian consumers.

This article covers everything you need to know, from the lawsuit’s background and eligibility criteria to the compensation process and key legal insights. Let’s break it down step-by-step.

What Is the Dollarama Class-Action Lawsuit About?

The lawsuit targeted Dollarama Inc. for allegedly failing to properly display eco fees, leading to customers paying more than the advertised price. These eco fees are environmental handling charges applied to certain items to cover recycling costs.

Key Allegations

The plaintiff, represented by LPC Avocats, claimed Dollarama:

• Did not transparently display the eco fees on products subject to these charges.
• Charged a total price higher than what was displayed or legally allowed.

Legal Context

This case falls under consumer protection laws, particularly those related to pricing transparency. In Quebec, the lawsuit references the Consumer Protection Act (R.S.Q., c. P-40.1), which mandates clear and accurate price displays. Failure to comply can lead to legal repercussions.

Settlement Details From $2.5M to $2.6M

Initially, a $2.5 million settlement was proposed in early 2024. However, it was rejected by the court due to concerns about insufficient compensation for class members. Following renegotiations, a new settlement of $2.6 million was approved by the Superior Court of Quebec on December 3, 2024.

Settlement Breakdown

• Total Settlement Amount: $2,643,718.75
• Compensation: Eligible claimants can receive an Interac e-transfer ranging from $3 to $10, depending on the number of approved claims.
• Legal Fees: The settlement covers class counsel fees and administrative costs.

Who Is Eligible for Compensation?

You are eligible to file a claim if you purchased certain products from Dollarama during specific timeframes:

• Quebec Purchases: Between December 11, 2019, and July 4, 2023.
• Rest of Canada: Between April 29, 2021, and July 4, 2023.

Eligible Products

The products subject to eco fees include:

• Batteries
• Electronic items
• Light bulbs
• Toys with batteries

Important Deadline

To receive compensation, you must submit your claim by February 14, 2025.

How to File a Claim

Filing a claim is straightforward. Follow these steps to secure your compensation:

1. Visit the Settlement Website: Go to the official claim website, Visit here.
2. Complete the Claim Form: Provide your name, email, purchase details (approximate date and location), and attest to the validity of your claim.
3. Submit Before the Deadline: Ensure you submit your claim by February 14, 2025.

Claim Form Requirements

• Valid Email Address: Required for receiving the Interac e-transfer.
• Bank Account: Must be capable of accepting Interac e-transfers.
• Single Claim Per Person: Only one claim form per claimant, regardless of the number of products purchased.

If the number of claims results in compensation falling below $3 per claimant, the funds will be donated to court-approved charities.

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Expert Insights and Consumer Impact

Transparency in Retail Pricing

Joey Zukran, the lawyer representing the plaintiffs, emphasized that the case highlights the importance of transparent pricing in retail. “Consumers have the right to know the full price they’re paying, including any added fees,” Zukran stated.

Eco Fees and Consumer Awareness

Eco fees are intended to support recycling programs, but their implementation must be clear. According to the Competition Act (R.S.C., 1985, c. C-34), misleading pricing practices can lead to legal action and settlements like this one.

Dollarama’s Response

While Dollarama denies any wrongdoing, the company has agreed to improve its business practices. Changes include clearer price displays for products with eco fees, ensuring compliance with consumer protection laws.

Why This Settlement Matters

Consumer Protection Laws

This case reinforces the importance of adhering to consumer protection regulations, such as:

• Quebec’s Consumer Protection Act (R.S.Q., c. P-40.1)
• Competition Act (R.S.C., 1985, c. C-34)

These laws ensure that businesses operate transparently and fairly, protecting consumers from hidden costs.

Retail Accountability

With Dollarama planning to expand to 2,200 stores across Canada by 2034, accountability in pricing practices is crucial. This settlement sets a precedent for other retailers to follow.

Key Statistics

• Settlement Amount: $2.6 million
• Eligible Compensation: $3 to $10 per claimant
• Claim Deadline: February 14, 2025
• Dollarama Expansion: Target of 2,200 stores by 2034

How to Stay Informed and File Your Claim

For more information and to file your claim, visit:

• Dollarama Class-Action Settlement Website

Related Documents

• Settlement Approval Notice
• Settlement Agreement

FAQs

What if I don’t have a bank account that supports Interac e-Transfers?

If you don’t have a bank account that can receive Interac e-Transfers, you won’t be able to claim compensation. The settlement only supports this method of payment. To qualify, ensure you have access to an account capable of receiving e-Transfers before submitting your claim.

Can I opt out of the settlement?

No. The opt-out deadline has passed. If you did not opt out before the specified date in the settlement notices, you are automatically included in the class action and can no longer withdraw from it.

How do I know if my claim was approved?

You will receive an email notification confirming whether your claim has been approved or denied. Ensure the email address you provide on the Claim Form is accurate and frequently checked.

What should I do if I face issues submitting the Claim Form?

If you encounter any issues while submitting your Claim Form, refer to the FAQs section on the official settlement website or contact the settlement administrator directly. The contact details should be provided in the notices.

Is there a cost to submitting a claim?

No. Submitting a claim is completely free. You do not need to pay any fees to participate in the settlement.

How long will it take to receive my compensation after submitting the claim?

The exact timeline may vary, but payments are typically issued after the claim deadline (February 14, 2025) and once all claims have been processed. You should receive your Interac e-Transfer within a few weeks or months following the deadline.

What happens if I miss the 30-day collection window for the Interac e-Transfer?

If you fail to collect the Interac e-Transfer within 30 days of receiving it, the payment will be forfeited. Ensure you monitor your email for the e-Transfer notification and claim it promptly.

What if I no longer have proof of purchase?

You do not need proof of purchase to submit a claim. However, you must attest under penalty of perjury to details like where and when you purchased products subject to eco fees. Providing false information could disqualify your claim.

What if my name or email changes after submitting my claim?

If your contact information changes after submission, notify the settlement administrator immediately to update your details and ensure you receive your compensation without delays.

What if I am unsure if I purchased an eligible product?

Eligible products typically include:

• Batteries
• Electronics
• Light bulbs
• Battery-operated toys

If you purchased any of these items from Dollarama during the specified periods, you likely qualify. Refer to the official settlement notice for detailed product categories.

Can I submit more than one claim if I bought multiple products?

No. Regardless of how many products you purchased, each approved claimant is eligible for only one payment.

Conclusion

If you’ve purchased products with eco fees from Dollarama during the specified periods, don’t miss out on your chance to receive compensation. This case underscores the importance of transparency in retail pricing and the role of consumer protection laws in safeguarding shoppers’ rights.

Ensure you submit your claim before February 14, 2025, and stay informed about your rights as a consumer.

Sources

1. The Canadian Press – Quebec court approves $2.5M settlement
2. CBC News – Dollarama reaches $2.6-million settlement
3. Toronto Star – Dollarama class action settlement details
4. Metroland News – How to file your claim

By understanding this settlement, you can take full advantage of your rights and hold businesses accountable for transparent pricing.