The airline demonstrated ignorance and laxity, judge finds
of ConsumerAffairsApril 24, 2025
Key takeaways
- Quebec Court of Appeal finds Air Canada overcharged passengers above advertised ticket prices
- Airline to pay more than $10 million in damages for violating consumer protection laws
- Court says Air Canada acted with ignorance and laxity in 15-year-old pricing dispute
In a major win for consumers, the Quebec Court of Appeal has ordered Air Canada to pay more than $10 million in damages to passengers who were charged amounts that exceeded the prices advertised on the airlines website.
The decision, released Tuesday, concludes a 15-year legal battle over fare transparency. Justice Judith Harvie, writing for the court, sharply criticized Air Canadas conduct, stating the airline demonstrated ignorance and laxity in assuming it was exempt from the Quebec Consumer Protection Act.
The court’s ruling reverses a lower courts earlier decision that, while acknowledging the breach of the law, declined to award punitive damages due to a perceived lack of harm.
What the case was about
The class-action lawsuit was originally brought forward by a Montreal resident and a consumer advocacy group. The lead plaintiff said he was charged $124 more in taxes, surcharges, and fees than the ticket price shown during the initial step of the booking process on Air Canada’s website.
The plaintiffs alleged that the practice misled consumers and undermined their ability to make informed purchasing decisions, as the final cost of a flight only became clear at the end of the checkout process.
Justice Harvie agreed, stating that such practices breach the transparency principles enshrined in Quebecs consumer law and that the company must be held accountable.
Broader context and industry scrutiny
The ruling comes as policymakers and consumers increasingly push back against junk fees hidden charges and surcharges added to everything from airline tickets to event bookings. Critics argue these practices obscure the true cost of goods and services and harm consumer trust.
While Air Canada has not yet responded to requests for comment, the ruling could have broader implications for the airline industrys pricing strategies, particularly in an era of increasing public scrutiny over fare transparency.
The courts decision not only requires Air Canada to compensate passengers affected by the misleading pricing but also sets a clear precedent for how companies must present price information moving forward especially in Quebec, where consumer protections are among the strictest in North America.
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