A Quebec judge has overturned a $2.5-million class action settlement intended for Dollarama customers who paid an eco fee on certain products.
The proposed agreement, reached on February 21, was awaiting judicial approval. On April 17, the judge decided to dismiss the settlement, as reported on a website dedicated to the class action.
LPC Avocats, the law firm representing the class members, communicated the judge’s decision in a letter distributed recently.
As a result, class members will not receive the gift cards or other compensation that would have been provided under the proposed settlement, according to the website.
Class counsel Joey Zukran informed CBC News via email that the case will continue as if no settlement had been reached.
In his letter to class members, Zukran stated, “At this stage, the parties can either proceed to litigate the matter or renegotiate a new settlement,” which would necessitate sending out a new class action notice.
The judge’s decision documents indicated that there was insufficient evidence to show that the settlement would benefit the class members or that the class action was appropriately structured.
No proof of purchase was required to claim a gift card. Items subject to an eco fee included batteries, electronics, light bulbs, or toys with batteries.
Anyone who purchased a product with an environmental handling fee from Dollarama in Quebec between December 11, 2019, and July 4, 2023, or elsewhere in Canada between May 29, 2021, and July 4, 2023, would have been eligible for a gift card worth up to $15.00.
While Dollarama had agreed to the original settlement, the company denied any wrongdoing or liability.
In an email to CBC News, Dollarama stated it is “currently reviewing the ruling and evaluating next steps.”
“As the matter is before the courts, we won’t be making additional comments at this time,” the company added.