Close×

"Buy now, pay later" - Léon convicted of misrepresentation class action Option consommateurs

Montreal, August 2, 2017 - Option consommateurs welcomes the judgment rendered on July 31 by Justice Blanchard of the Quebec Superior Court in theclass action it brought in 2009 against Meubles Léon ltée, a well-known furniture and appliance retailer.

Option consommateurs accused the retailer of attracting customers with slogans such as :

 

"You pay absolutely nothing! Not even taxes! For 15 months!

"More! Don't pay for 16 months!"

"No down payments! 0% interest! no monthly payments! on all our supermarket items!

 

In effect, consumers who signed up for the financing plan had to pay the $21 annual fee charged by CitiFinancière, one of the financial institutions administering Léon's financing plan.

"For the past fifteen years, Léon has repeatedly refused or neglected to comply with the advertising provisions of the CPA. [...] it is clear that the merchant's advertising strategy is in fact based on a repeated and systematic violation of the relevant provisions of the CPA," wrote Judge Blanchard. He sentenced Léon to an exemplary penalty. Léon and CitiFinancière will have to compensate consumers for the amounts paid in membership fees.

In addition, Meubles Léon will have to pay $1,703,800 in damages, including $1 million in exemplary damages. "The punitive nature of the exemplary damages demonstrates the seriousness of the offences committed," emphasizes Me Karine Robillard, lawyer and budget and legal advisor at Option consommateurs.

 

Are you a target?

All consumers who have purchased a Meubles Léon product or service in Quebec, AND who have subscribed to a "buy now, pay later" financing program, AND who have been billed an annual fee, are automatically members ofclass action and eligible for compensation.

Once the appeal period has elapsed, a claims process will be set up. Option consommateurs will then notify consumers of the progress of the case via and on social networks.

 

About Option consommateurs

Option consommateurs is a not-for-profit association whose mission is to defend the rights and interests of consumers. It is closely involved in issues related to personal finance, business practices, financial services, protection of personal information, energy, health and agri-food.

 

– 30 –

 

For further information, please contact

Elise Thériault
Option consommateurs
514 777-6133
[email protected]