Quebec-based Dollarama has agreed to a $2.5 million settlement in a class-action lawsuit that will see eligible customers receive a $15 digital gift card.
The lawsuit relates to an environment handling fee (EHF) that the plaintiffs said was included in the price of certain products without customers’ knowledge. EHFs were charged for items like batteries, lightbulbs, and toys with batteries, but were not included in the advertised price of the item, a Quebec plaintiff said when initiating the lawsuit.
The settlement covers anyone who purchased an item with EHF fees in Quebec between Dec. 11, 2019, and July 4, 2023.
The settlement also applies to anyone else in Canada who purchased an item at Dollarama that is subject to EHF fees between April 29, 2021, and July 4, 2023, the announcement said.
No compensation will be paid out until the settlement is approved by the court. A hearing has been scheduled for April 9.
“Sustained consumer demand for our broad range of affordable everyday products and strong execution in the third quarter of Fiscal 2024 drove double-digit same store sales growth for a sixth consecutive quarter,” CEO and president Neil Rossy said.
He noted the increase in sales had led to more than 31 percent earnings per share growth.
“Our financial and operational performance year-to-date reflects the strength and relevance of our value proposition and business model in a challenging macro-economic context,” he said.
The company said that store sales saw more than 11 percent growth and 16 new stores were opened.
The company has seen sales consistently rise over the past couple of years as Canadians look for cost savings in the face of rising prices and inflation.
