Dollarama, Costco, Metro and other companies face class-action over recyclable bags in Quebec

In the application for authorization, Sonia Cohen, the class action applicant, alleges that the bags sold at the stores of the defendants all advertise reusable and recyclable bags that cannot be recycled in Quebec, and in Canada more broadly. Cohen argues that the companies have engaged in “greenwashing” — a practice where companies take part in false or misleading advertising tied to climate change.

Lyla Radmanovich, a spokesperson for Dollarama, said the company “is currently one of a number of defendants to the class action,” adding that the company is contesting the procedure which is before the courts and refused to comment further. 

According to a post on the Competition Bureau’s website about greenwashing, the federal agency said, “False, misleading or unsubstantiated environmental claims may raise concerns under the laws enforced by the Competition Bureau: the Competition Act, the Textile Labelling Act, and the Consumer Packaging and Labelling Act.” Companies like RBC and Lululemon have been investigated by the bureau for greenwashing practices in the past.

Attached to the application are pictures of Dollarama’s green bags, which have prominent signs on the front that read “I’m reusable and recyclable.” The application also refers to a statement from Tricentris la coop, a company with sorting centres in Quebec, that states Dollarama bags are not recyclable.

Dollarama was also the subject of a $2.5 million class action that was settled and closed earlier this year after plaintiffs claimed the dollar store chain had tacked on extra “ecofees” at checkout.

Class action only applies to Quebec residents, for now

Cohen is seeking a combined $10 million from all eight companies. While the application asked for the class action to include “all persons in Canada who purchased a bag” from the listed stores, the judge limited the class action to only those who live in Quebec.

When asked if he would appeal the ruling to expand the class action to Canadians across the country, Joey Zukran, the attorney representing Cohen in the class action, said, “We are evaluating all our options.”

Quebec residents are automatically included in the class action, unless they opt out, Zukran said.

Now that the class action has been authorized, there is an appeal delay for the next month, and then the case moves forward into discovery, he added.

“The judgment sends a strong message to companies who are greenwashing that you shouldn’t greenwash, that you should be careful of the representations you make,” Zukran said. “They should definitely be cautious from misleading and defrauding the public.”

“As this matter is in front of the court, we are not commenting,” Stephanie Bonk, a communications manager for Metro, said in a statement.

A spokesperson for Rona said the company is “in the process of reviewing (the judgement).”

“It is important to note that the authorization judgment is only a preliminary decision and does not decide the merits of the case,” the spokesperson said, but declined to comment further.

The other defendants in the class action, including Dollarama, did not respond to the Star’s request for comment before publication.