On September 20, 2024, Joyce Romano, a loyal customer of Vidéotron, initiated a class action lawsuit concerning alleged illegal and unenforceable price hikes. The Montreal Superior Court approved this collective action on December 5, 2024. The case targets notifications of price increases sent on November 29, 2023, and September 12, 2024.
In the initial email, Vidéotron informed Ms. Romano about a monthly increase of $3 (plus taxes) for her Hélix plan, effective February 1, 2024. Subsequently, another email announced an additional $2 monthly increase for each of her services (telephone, Internet, and television) starting December 4, 2024.
Legal Grounds for the Class Action
The lawsuit cites violations of Article 11.2 of the Consumer Protection Act (LPC). This article mandates that businesses provide written notices containing the revised clause and its previous version, along with the effective date of the change. It also stipulates that consumers may refuse the modification within 30 days of its implementation.
- Notifications must include the previous clause.
- Consumers must be informed of their rights to refuse the modification.
According to the filed complaint, Vidéotron’s notices failed to include these required details. The company offered customers the option to terminate their contracts by phone, which is not compliant with the LPC requirements. Similarly, a $5.99 monthly price hike for Cogeco’s Internet service lacked the necessary information regarding the previous version of the clause and the consumer’s rights to refuse or cancel.
Implications for Vidéotron and Cogeco
The court’s preliminary findings suggest that the price hikes may be unenforceable if they violate the Consumer Protection Act. If confirmed, these increases could be deemed invalid, impacting both companies’ revenue strategies.
Each affected customer may seek a refund of the increased amounts along with punitive damages of $200. The allegations imply that Vidéotron may have accumulated “tens of millions of dollars” through these price increases.
Next Steps in the Legal Process
With the approval of the class action, the court will next assess its basis. Both companies have indicated their intention to challenge the approval. A legal battle could extend over several years if a settlement is not reached.
| Company | Price Increase Details | Email Notification Dates |
|---|---|---|
| Vidéotron | $3 monthly increase; additional $2 per service | November 29, 2023; September 12, 2024 |
| Cogeco | $5.99 monthly increase | Date unspecified |
The collective action will include all Quebec residents whose monthly charges for Vidéotron or Cogeco services were unilaterally increased without adherence to the LPC since September 20, 2021. Affected customers are automatically part of this legal pursuit.
Overall, this action against price hikes by Vidéotron and Cogeco underscores growing concerns regarding consumer rights and corporate practices in the telecommunications sector.
