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Dollarama proposes $2.5M settlement in class action over products with eco fees

MONTREAL — Dollarama Inc. customers who purchased products with an "eco fee" in the last few years may be eligible to receive a gift card from the retailer under a $2.5 million proposed settlement stemming from a class-action lawsuit.

Under the class action, 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.

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

To settle the matter, LPC Avocats says Dollarama has offered Dollarama customers who purchased products with eco fees between May 29, 2021 and July 4, 2023 gift cards valued at up to $15.

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Customers who bought such products in Quebec between Dec. 11, 2019 and July 4, 2023 are also eligible.

LPC Avocats says a court will hold a hearing on April 9 to decide whether to approve the settlement before any gift cards are provided to eligible consumers.

Dollarama says in a statement that, like other retailers, it charges eco fees "where appropriate" but displayed its eco fees and prices separately.

It adds the proposed settlement is not an admission of any liability or wrongdoing by Dollarama.

This report by The Canadian Press was first published Feb. 21, 2024.

Companies in this story: (TSX:DOL)

The Canadian Press