Option consommateurs c. Meubles Léon (annual membership fees on "buy now, pay later" financing plans)
Description
On November 19, 2009, Option consommateurs filed a motion for authorization to institute a class action against Meubles Léon Ltée, a retailer of home furnishings, appliances, electronics and mattresses.
We criticize the retailer for attracting customers with its slogans "You pay absolutely nothing! Not even taxes! For 15 months!", "Plus! don't pay for 16 months!" and "no down payment! 0% interest! no monthly payment! on all our supermarket items!". In practice, consumers who sign up for the financing plan must pay an annual fee of $21. Since May 1, the "Buy Now, Pay Later" financing plan has included a membership fee charged by Citi Financial, one of the financial institutions administering Léon's financing plan.
Our members
Persons who, in Quebec, have taken out a financing plan for the purchase of goods or services at a Léon store and have been charged an annual membership fee or any other equivalent fee. If you have taken out a financing plan at a Léon store and have been charged an annual membership fee or any other equivalent fee? We suggest you keep all documents relating to this financing plan (advertisement, contract, invoice, statement of account, etc.).
Where we are
An application for permission to appeal the judgment to the Supreme Court was filed by Meubles Léon on February 27, 2020. Option consommateur also filed its own application for leave to appeal to the Supreme Court on March 19, 2020.
Recall that on July 31, 2017, the Superior Court grantedclass action d'Option consommateurs and ordered Meubles Léon to pay :
- 162,918 for annual membership fees charged to members;
- 703,800 in damages for illegal advertising practices;
- 1,000,000 in punitive damages; and
- 495,000 for members' legal and out-of-court expenses.
The court also granted in part Meubles Léon's warranty claim against Fairstone Financial Inc (formerly Citi Financial).
This judgment is being appealed by Meubles Léon Ltée. and Fairstone Financial.
On January 20, 2020, the Court of Appeal overturned part of the trial judgment, notably by refusing to award damages and punitive damages to the members of the group. Only the representative, Chantal Noel de Tilly, is entitled to $85 in punitive damages.
Option consommateurs Meubles Léon is appealing the decision to the Supreme Court.
On October 22, 2020, the Supreme Court rejected both applications. The judgment of the Court of Appeal is confirmed. Meubles Léon will have to reimburse the $21 annual membership fee paid by the 7,000 or so people targeted byclass action.
To be kept informed of progress
Join the mailing list on the website of Belleau Lapointe, the firm representing Option consommateurs in this matter, to receive email updates about this class action.
You can also consult this page, which is updated regularly.
Relevant documents
- Court of Appeal ruling of January 20, 2020
- Judgment
- Press release (2017): Léon sentenced for false representation
- Notice to members (2016) - short version
- Notice to members (2016) - long version
- Motion to institute proceedings
- Quebec Superior Court authorization judgment, June 21, 2012
- Press release, November 24, 2009
- Motion for leave to appeal to the Supreme Court dismissed