Milk sold for more than the maximum allowed and taxes on products that should be exempt: the Uber company finds itself at the heart of a request for class action because of some of its billing practices.
The application Uber Eatsat the centre of the dispute, offers to deliver or prepare an order of basic products – including milk – through its “Dépanneur” section. However, according to the plaintiff Pierre Fortin-Simard and the firm Perrier Avocats, the selling prices of certain products are non-compliant, a practice of which Uber is well aware, according to the court document. However, the company is slow to “correct the situation”.
In doing so, Mr. Fortin-Simard is seeking compensation for the amounts overpaid, as well as punitive damages. The request is made on behalf of all individuals who, having used one of Uber’s platforms, paid too much for tax-free products or drinking milk.
Uber “made false or misleading representations […] regarding the payment of taxes due” on tax-exempt products, we can read in the application filed in Superior Court. The document also claims that the company overcharges “amounts in a manner contrary to the regulations on […] dairy products”.
Thus, by contravening the laws and regulations in force, Uber would have caused harm to its customers – all in a “clearly intentional” manner.[le] “In terms of punitive damages, the plaintiff therefore wants each injured customer to be able to obtain the sum of $5 per transaction.
Practices already known
The investigation team of The Press had reported in February 2023 these practices contrary to the law which, in the long term, inflated the prices paid by consumers. Among retailers, many had claimed ignorance or lack of knowledge of the law, sometimes passing the buck to third-party applications ensuring the delivery of products. Similar practices had been observed at DoorDash And Skipwhich are not, however, targeted by the request for collective action.
Read the investigation “Delivery platforms: inflated and illegal prices”
In his investigation, The Press had for example noted that a litre of milk could be sold for up to $6.99, while its maximum price at the time was set at $2.17. As for an order including tax-free products, the application Uber Eats ultimately required taxes equivalent to the QST (9.975%) and the GST (5%).
Uber defended itself at the time by claiming that it was not responsible for the situation. “Retailers are exclusively responsible for any regulatory obligations relating to the sale prices of their items,” the company argued.
However, the court document argues on the contrary that it must be “considered as […] engaged in the marketing of dairy products”.