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Air Canada ordered to pay over $10 million in ticket overcharge case

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Air Canada ordered to pay over $10 million in ticket overcharge case
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Air Canada | Official Website

Air Canada has been directed by the Quebec Court of Appeal to pay over $10 million in damages following a class-action lawsuit. The suit, initiated by a consumer advocacy group and a passenger approximately 15 years ago, alleged that the airline charged more than the advertised ticket prices.

Justice Judith Harvie stated that Air Canada exhibited "ignorance and laxity" by assuming exemption from a provincial Consumer Protection Act, as air transport falls under federal jurisdiction. Harvie described the airline's actions as "recklessness and serious negligence towards consumers" and emphasized the need for punitive damages to denounce such behavior.

Initially, a lower court ruled that the breach, involving unadvertised extra fees, did not harm consumers and thus did not warrant damages. However, the Court of Appeal reversed this decision, asserting that Air Canada prioritized its commercial interests over consumer protection.

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The origins of the case stretch back 15 years, triggered by a complaint from Montreal resident Michael Silas. Silas claimed that while purchasing a ticket in 2010, following the enactment of a consumer protection law, the airline added $124 in taxes, fees, and surcharges, unseen in the advertised price.

Air Canada's spokesperson, Peter Fitzpatrick, remarked that the ruling hinges on interpreting federal and provincial law interplay before 2012. The court's decision entails reimbursement for tickets sold from June 30, 2010, to February 8, 2012, with $14.45 allocated per ticket.

The judgment coincides with ongoing debates about airline pricing strategies. Air Canada's move to unbundle fares and increase reliance on ancillary revenue has sparked criticism. Harvie noted that such pricing aims at competitiveness rather than consumer interest.

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