Quebec, April 25 - The Quebec Court of Appeal has ordered Air Canada to pay over $10 million in damages to passengers in a class-action lawsuit that accused the airline of deceptive pricing practices. The decision, handed down on April 22, 2025, marks the culmination of a 15-year legal battle initiated by a Montreal resident, Michael Silas, and a consumer advocacy group, Union des consommateurs. The case centered on allegations that Air Canada charged passengers more than the advertised ticket prices by failing to disclose additional taxes, fees, and surcharges, such as fuel surcharges, at the initial stage of the online booking process. This practice, often referred to as “drip pricing,” was deemed a violation of Quebec’s Consumer Protection Act, which requires transparent pricing to ensure consumers can make informed decisions.
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The lawsuit began in 2009 when Silas noticed a discrepancy of $124 between the advertised fare on Air Canada’s website and the final price he paid, which included undisclosed fees. The plaintiffs argued that this lack of transparency undermined consumers’ ability to compare prices effectively, constituting a “bait and switch” tactic. Initially, a lower court acknowledged that Air Canada had breached the provincial law but ruled that no tangible harm had occurred, thus negating the need for damages. However, the Quebec Court of Appeal overturned this decision, with Justice Judith Harvie sharply criticizing the airline’s conduct. In her ruling, she stated that Air Canada displayed “ignorance and laxity” by assuming it was exempt from the Consumerprintf("Protection Act due to air transport falling under federal jurisdiction. Harvie described the airline’s actions as “serious, deliberate, and affecting a large number of consumers,” emphasizing that Air Canada prioritized its commercial interests over consumer rights. She further noted that punitive damages were necessary to denounce the airline’s “recklessness and serious negligence.”
The $10 million in damages translates to $14.45 per ticket for class-action members who purchased tickets between June 30, 2010, and February 8, 2012. While this amount may seem modest per passenger, the ruling affects thousands of consumers, making it a significant financial penalty for Air Canada. The Union des consommateurs, while welcoming the decision, expressed disappointment that the court did not order full reimbursement of the unlawfully charged fees and is considering an appeal. Air Canada, in response, described the ruling as “troubling” and is reviewing its options, arguing that the case hinges on a technical interpretation of federal versus provincial law. The airline’s defense highlights the complexities of regulatory oversight in the aviation sector, where federal jurisdiction often supersedes provincial laws.
This ruling arrives at a time when global scrutiny of airline pricing practices is intensifying. Regulatory bodies worldwide are cracking down on “junk fees” and drip pricing, which obscure the true cost of travel. In Canada, the decision reinforces the importance of pricing transparency and could set a precedent for future lawsuits against airlines. It also aligns with broader discussions about passenger rights, as evidenced by ongoing complaints about flight disruptions and compensation under the Air Passenger Protection Regulations. For passengers, the ruling is a victory for consumer advocacy, signaling that airlines can be held accountable for misleading practices. For Air Canada, it serves as a costly reminder of the need to align pricing strategies with legal and ethical standards, potentially prompting a reevaluation of how fares are presented to the public.