The Quebec Court of Appeal has announced that Air Canada will pay $10 million for the inconvenience the passengers faced due to hidden ticket prices. On Tuesday, the ruling came against the defendant and overturned the past lower court decision.
The court ruled that Air Canada showed ignorance and gave more preference to the commercial benefit than the consumer interest and rights. So, the Court found the defendant to be accountable and responsible for consumers inconvenience and ordered them to pay the hefty penalty.
This Air Canada class action is a 15-year-long case, which now offers some compensation to the passengers who have paid the ticket price more than the advertised price between June 2010 and February 2012. The court is yet to provide further process to claim the payout.
| Class Action | Air Canada Class Action |
| Penalty | $10 Million |
| Who qualifies? | Air Canada Customer or passenger who paid more than advertised prices, except taxes, during the class period. |
| Class Period | 30 June 2010 and 08 February 2012 |
| Payout | $14.45 per ticket purchase |
| What’s Next? | Air Canada may appeal the Court decision, and if not, the payout process can begin |
| Claim Process | Not Released yet |
| Settlement Website | Not Released yet |
Cause of Lawsuit
The customer advocacy group and one Montreal resident filed the case against Air India 15 years ago, where the plaintiff alleged that, when he purchased the ticket in 2010, he paid $124 more than the price listed initially on the Air Canada website.
The class action lawsuit says Air Canada has violated the Quebec Consumer Protection Act as they were not transparent about the prices and misled the consumers, which led them to pay more than they were shown in the initial prices and prevented them from making the right decision.
The lawsuit also covers the hidden charges inflicted by the defendant, such as baggage fees, and others. The lower court ruled that Air Canada had violated the act, but as the evidence does not directly indicate that customers were misled, the court dismissed the need to offer compensation to the consumers.
The Quebec Court of Appeal has now demanded $10 million in damages compensation for the passengers who paid the unlawful charges.
Who can receive it?
With a $10 million penalty announced, the Court is yet to decide on the class members; however, based on the reports, people who meet the following conditions can expect the payout:
- The passengers or customers of Air Canada who purchased the ticket in the period from 30 June 2010 and 08 February 2012 will receive compensation.
- The court says all the passengers who have paid more than advertised prices or are affected by the hidden charges would be eligible for compensation.
Payment Amount
The official class action agreement disclosing the payment distribution for the $10 million penalty has not been announced yet. However, based on the general procedure of the funds, the members can expect the service awards for the plaintiff who brought this case to the court, attorney fees & costs, and administrative costs.
According to the Quebec court ruling, the passengers can expect $14.45 compensation from the $10 million damage penalty for each ticket they purchased from the Air Canada official website during the class period.
The court has not revealed whether there will be a claiming process or not, so the affected passenger’s compensation distribution process will be. The affected passengers should stay tuned as the settlement website of the Air Canada class action can be announced to process the claim, or any other method.
What’s Next?
The Quebec Court of Appeal has directed Air Canada to pay the penalty for the violation of the Consumer Protection Law, announcing the company’s negligence and carefree behavior in favor of consumer interest or right. Air Canada has denied such allegations and has not responded to the decision yet.
According to the Union des Consommateurs, Air Canada is considering whether to appeal the court decision or pay the penalty for the charged fees and hidden fees in ticket fares. If the defendant filed the appeal against the Quebec Court of Appeal decision, the case will be halted and the proceedings for the compensation will stop.
The upper court will look into the appeal, and until the appeal is resolved, the affected customers will have to wait for the compensation. Even after the appeal is resolved, it does not guarantee the payment, as the ruling must be in favor of the plaintiffs or class members.
The Air Canada $10 million penalty for ticket prices more than the advertised price prioritizes the consumer’s right, and the court also gave a message for companies to be transparent about their prices from the start.
The affected passengers are advised to stay tuned because if the appeal is not filed, the court can release the claim deadline or further claim process to compensate the affected customers from the $10 million fund.