If you’ve been following the saga of dealerships who allegedly failed to comply with Quebec’s all-inclusive pricing consumer law, you were eager, like us, to find out whether the Superior Court would approve – or not – the proposed settlement in the four class action cases brought against nearly 200 car dealers in La Belle Province. Well, the Honourable Sylvain Lussier has finally delivered his verdict. Here’s everything you need to know about the what, why and how much consumers will get out of this court agreement.
To read this story in French, please click here.
What: Four class action suits, a potential $500 million
Since 2021, four class action suits have been filed in Quebec Superior Court by the Montreal firm Lambert Avocats, targeting nearly a quarter of dealerships in la Belle Province. They were accused of violating the province’s Consumer Protection Law, including:
- Article 224c, “by charging a price for a good or service that is higher than the advertised price”;
- Article 230a, “by charging a sum for a good or service that they have rendered to a consumer without the consumer having asked for it.”
These class actions, which had not yet been authorized by the bench, are among the largest in Quebec in terms of number of establishments involved, customers affected and the astronomical amounts that would have been involved. When he spoke to Driving.ca in January 2022, the plaintiffs’ lawyer, Jimmy Ernst Jr Lambert estimated that the compensation (and punitive damages) to be paid to infringed consumers would be close to $500 million.
Plaintiffs only get $75, in coupons no less
Instead, the agreement approved on October 8 in Montreal should represent total compensation of only $35 million. These indemnities take the form of a $75 coupon that each “class member” can claim – and spend at the dealership with which they have done business. This credit applies to the purchase of goods (a vehicle, a mechanical component or an advertising merchandise) or service (an oil change, a repair, a maintenance). The magistrate found the proposed regulation to be “reasonable, fair, adequate and in the best interests of members”.
When the proposed settlement was submitted to Quebec’s highest court, last June, there was a lot of talk during the hearing about what you could buy – or not – with a $75 coupon at a car dealership. Organizations such as l’Office de la protection du consommateur and the Automotive Protection Association (APA), among others, pointed out that such an amount doesn’t even cover an oil change.
George Iny, director of the APA, considers the “$75 credit on a purchase that isn’t negotiated to be zero cost for dealers.” It’s even “a ‘plus’ for these dealers, who spend far more on marketing budgets to attract customers to their showrooms,” he says. He points out that the legal documents filed in the four class actions against Quebec car dealerships mention an average of $300 to $600 billed in extra to the advertised price, for “administration fees, starter kit and other ‘VIP packages’”.
To whom: Half a million Quebecers
According to the documents presented in court by the defendants, precisely 474,130 Quebecers who have done business with one of the signatory dealers receive the $75 coupon. Compensation is automatic with the dealer – whether or not they have charged those consumers a higher price than advertised or forced them to non-requested options.
“To the extent that credit is available to any former customer, without verification of the terms of his purchase or lease contract and any representations that may have been made to him, the defendants will be compensating customers for whom they may not be at fault.” – The Honourable Sylvain Lussier, Judge of the Quebec Superior Court
On average: $250,000 “freebee” per dealer
Although some dealerships sold more vehicles than others during the periods covered by the agreement, we can estimate that each signatory will have to offer nearly $250,000 in goods and services free of charge. That said, if only half of the Quebecers affected by the by-law use their coupon to reduce their next “car” bill, the penalty will be that much less for the dealers.
That is among the criticisms of APA legal counsel, Hubert Lamontagne, who believes that not all beneficiaries will want to use a $75 credit with a merchant that may have illegally charged them 10 times more money. “To be compensated, members will have to conclude a new transaction with their dealer, with whom “the bond of trust (…) may have been affected by these commercial practices”, says Mr. Lamontagne.
Where: At these 150 Quebec dealers
Initially, the four class actions were aimed at nearly 200 car dealers in Quebec. But only 150 of those dealers signed the out-of-court settlement – you’ll find the list at the bottom of this article. Note that they are divided into four groups, for each period covered between November 21, 2017 and January 17, 2022. If your dealership is on the list and you have purchased or leased a vehicle (new or used) from them during said period, you are automatically eligible for the coupon.
Your car dealer hasn’t signed the agreement? You can’t claim a coupon. But if you can prove that you’ve been charged more than the advertised price, you can file a claim in small claims court – where you can seek reimbursement of the illegal charges, but also perhaps punitive damages.
How: Transferable – but to be spent in one shot
The requirements for obtaining the $75 credit are minimal, Judge Lussier emphasized in his decision: “The member is not obliged to trace his contract, nor the misleading advertising that would have induced him to sign it. Simple proof of identity is sufficient.”
Coupons have no expiry date and are fully transferable. The only constraint is that they must be used in full at once, otherwise the balance is lost. The magistrate explained that he had approved a coupon rather than a payment in due form, because “due to fears related to computer fraud, many class action members do not do cash Interac transfers.”
Who pays the legal fees? (Hint: not you)
The fees of the plaintiff-claimant Lambert Avocats are to be paid by the defendant-dealers. These legal fees, authorized at $5.3 million, represent 15% of the maximum value of the settlement. A brief calculation suggests that this amount will represent, on average, $35,000 per signing dealer. APA’s George Iny believes that this is the real penalty for the dealers involved. “While the $75 coupons are a business opportunity for them, the legal fees they will have to pay represent sums higher than, for example, the fines imposed when they are prosecuted by the OPC.”
The List of 150 dealers that signed the agreement
GROUP A – Between November 21, 2017 and May 5, 2021
Brossard Hyundai
GROUP B – Between May 5, 2018 and October 22, 2021
Complexe de l’auto Park Avenue, incluant:
BMW Sherbrooke
Méga Centre Occasion Park Avenue
Occasion Park Avenue
Occasion Park Avenue La Prairie
Park Avenue Honda
BMW Sainte-Julie
MINI Brossard
Location Park Avenue
Park Avenue BMW
Park Avenue Infiniti
Park Avenue Audi
Mercedes-Benz de Québec
Park Avenue Toyota
Park Avenue Volkswagen
Park Avenue Lexus Sainte-Julie
Jaguar Land Rover Brossard
Volvo de Brossard
Automobiles Silver Star
Jacques Olivier Ford
Olivier Kia McMasterville
Olivier Hyundai St-Basile
Subaru de Laval
Honda de Boucherville
Mercedes-Benz Rive-Sud
Hyundai Île-Perrot
Grégoire Hyundai Île Perrot
Ford Île-Perrot
Cadillac Chevrolet Buick GMC de l’Île-Perrot
Mazda 2-20
Île-Perrot Toyota
Dupont Ford
Mercedes-Benz Montréal-Est
Mazda Pointe-aux-Trembles
Giroux Chrysler Dodge Jeep Ram
Giroux Mitsubishi
Honda Pointe-aux-Trembles
Granby Chrysler
Bessestte Automobile
Valleyfield Toyota
Kia de Lasalle
Leviko Hyundai
Mazda des Sources
Subaru des Sources
Vente d’Autos H. Grégoire
Hamel Honda
Chomedey Toyota
Honda de Ste-Rose
Automobiles Duclos Longueuil
Automobiles Duclos Laval
Duclos Chrysler Dodge Jeep Ram Fiat
Automobiles Duclos Valleyfield
Toyota Gabriel Saint-Laurent
Gabriel Volkswagen Saint-Laurent
Acura Gabriel – West Island
Audi Anjou
Audi St-Laurent
Audi Trois-Rivières
Hyundai Gabriel Ouest
Genesis de l’Ouest
Honda Gabriel Anjou
Hyundai Gabriel Anjou
Hyundai Gabriel Saint-Jacques
Infiniti Gabriel St-Léonard
Kia Gabriel Montréal-Nord
Kia Gabriel Ouest
Gabriel Lexus Brossard
Lexus Gabriel Saint-Laurent
Nissan Gabriel Anjou
Nissan Gabriel Jean-Talon
Nissan Gabriel Saint-Jacques
Nissan Gabriel St-Léonard
Porsche Prestige
Toyota Gabriel Centre-Ville
Volkswagen Gabriel St-Constant
Gabriel BMW Moto
Gabriel Harley-Davidson Montréal
Trois-Rivières Honda
Montmorency Ford
Saint-Laurent Hyundai
Boisvert Chevrolet Buick GMC
Terrebonne Ford
Ford West Island
Joliette Volkswagen
Entrepôt Auto Durocher
GROUP C – Between May 29, 2018 and November 15, 2021
Hyundai St-Constant
Lallier Kia de Laval
St-Basile Toyota
Kia Thetford
Chomedey Hyundai
Occasion Chomedey
Subaru Rive-Nord
Auto Max
Saint-Jérôme Chrysler Jeep Dodge Ram Fiat
St-Jérôme Auto Dépôt
Cartier Chevrolet Buick GMC
Trois-Rivières Toyota
Auto RR
AUTxO Primo
Donnacona Ford
Blainville Chrysler Jeep Dodge
Subaru Outaouais
Ford St-Basile
Grenier Volkswagen
Action Chevrolet Buick GMC
Chambly Kia
Occasion Ville de Québec
Courtier Automobile Supérieur
Langevin Automobiles
Automobiles Christian Beauvais
Volkswagen Laurentides
Vaudreuil Volkswagen
Mazda Drummondville
Honda Charlesbourg
Longue Pointe Chrysler Dodge Jeep Ram
Belleau Auto
Terrebonne Mitsubishi
Complexe Kia (Montréal)
Laval Volkswagen
Granby Toyota
Kia Ste-Julie
Toyota Saint-Jérôme
Kia St-Hyacinthe
2972344 Canada (Longueuil Toyota)
GROUP D – Between July 31, 2018 and January 17, 2022
Kia Longueuil
Beauport Nissan
BMW West Island
Chevrolet Buick GMC de Valleyfield
Hyundai Drummondville
Maison de l’auto Dolbeau-Mistassini
Nissan Magog
Volvo de Laval
Audi St-Bruno
Lexus Laval
Hamel Chevrolet Buick GMC
Mercedes-Benz West Island
St-Bruno Volkswagen
Woodland Toyota
Grégoire Drummondville
Grégoire Infiniti Laval
Grégoire Nissan Saint-Eustache
Grégoire Saguenay
Amos Toyota
BMW Montréal Centre (Canbec)
Carle Ford
Deschamps Chevrolet Buick Cadillac GMC
Excellence Dodge Chrysler
Hyundai Granby
Kia Québec
Mercedes-Benz Granby
Trois-Rivières Mitsubishi
Germain Chevrolet Buick GMC
Grenier BMW
Occasion Grenier
Honda Île-Perrot
Hyundai Valleyfield
Mazda de Sherbrooke
Volkswagen St-Hyacinthe
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