The Consumers Council of Canada appeared before the Supreme Court twice in October in cases that concern price-fixing and airline pricing. Both could shape consumers’ ability to hold businesses accountable and recover money.
Price-fixing abroad, higher prices at home
A price-fixing scheme arranged overseas can still hit Canadians in the pocketbook. On October 8, the Council’s lawyers intervened in NHK Spring Co., Ltd. v. Tony Cheung, a national class action brought under the Competition Act.
The case concerns a scheme to fix prices for computer components, leaving Canadian consumers paying more. Think bread price-fixing, except with computer parts. NHK Spring admitted to price-fixing overseas but argued that, because the agreement was made outside Canada, Canadian consumers could not claim compensation under the Act. Cheung countered that consumers should be able to seek compensation here when the scheme caused them harm in Canada.
The Council stressed that the Act serves to protect consumers. It argued that consumer welfare should guide how courts interpret section 36, which allows consumers to seek compensation.
Air Canada’s pricing under scrutiny
On October 16, the Council returned to the Court in Union des consommateurs v. Air Canada. The case concerns drip pricing: advertising one price, then adding charges as customers move through the booking process. It also asks whether Quebec’s consumer protection rules apply to a federally regulated airline and what consumers must prove to recover money.
After an initial loss in Quebec Superior Court, the Quebec consumer group won $10 million in punitive damages against Air Canada on appeal. These damages punish misconduct and discourage similar behaviour. The appeal court did not award refunds to individual consumers, finding no basis to calculate them.
The Council argued that punitive damages help deter abusive and deceitful conduct in the marketplace.
The Supreme Court reserved its decisions in both cases. The Council expects rulings in 2027.
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