No gift cards for Dollarama shoppers as judge dismisses $2.5 million settlement

It looks like members of a class-action lawsuit against Dollarama over hidden fees won't receive gift cards after a $2.5 million settlement was dismissed.

According to Montreal-based law firm LPC Avocats, a deal was reached in Superior Court in January over allegations that prices for products subject to an Environmental Handling Fee (EHF) weren't correctly advertised.

Batteries, electronic products, light bulbs, and toys with batteries are eligible for an EHF. Dollarama was accused of not properly displaying the products' prices and charging a higher total or EHF fees "higher than displayed for these products or allowed by law."

"Dollarama denies any liability or wrongdoing, and no Court has concluded in any wrongdoing on its part," read the statement.

Anyone who shopped at a Dollarama in Quebec (between December 11, 2019, and July 4, 2023) or anywhere else in Canada (between May 29, 2021, and July 4, 2023) was considered a member of this class action and would have been eligible for a Dollarama gift card with a maximum value of $15.

However, in an update, the law firm stated, "By judgment rendered on April 17, 2024, the Court dismissed the application to approve the settlement. This means that you will not receive any of the compensation provided for under the proposed settlement. At this stage, the parties can either proceed to litigate the matter or renegotiate a new settlement, in which case new notices would be published."

Class action members will be updated on any future developments, and names and information will be kept confidential.

LPC Avocats have been contacted for more information.

Last week, low-cost carrier WestJet proposed a multimillion-dollar settlement in a class action regarding its baggage fees.

Evolink Law Group published a notice of the proposed $12.5 million settlement on Wednesday. The proposal does not mean WestJet is admitting liability.

The class action includes people in Canada and anywhere else in the world who paid a fee for their first checked bag on flights booked directly with WestJet for travel between October 29, 2014, and July 29, 2017 (for Canadian domestic flights) or between January 6, 2016, and February 27, 2019, (for international flights), and whose itineraries were booked pursuant to a tariff that included the free baggage fee stipulation.

Read more about that class action here.