Press Room
“Buy now, pay later”
Option Consommateurs launches a class-action suit against The Brick for false representations
Montreal,, November 5th, 2009 –
Option Consommateurs has filed a motion to obtain the authorization to institute a class action suit against The Brick Warehouse LP, a retailer of home furnishings, appliances, electronics and mattresses doing business in Quebec as “The Brick”.
Option Consonmmateurs claims that the retailer is misleading its clients through slogans such as “Do not pay for 15 months” and “No down payment, no monthly payment, no interest”. In reality, consumers relying on The Brick’s financing plan have, among other things, to pay an annual membership fee of $35.
Since April 1st, the financing plan “Buy now, pay later” comes with a membership fee charged by HSBC, one of the financial institutions managing The Brick’s financing offers. The retailer has recognized having requested from HSBC that they put a stop to this practice, but to no avail.
According to lawyer Stéphanie Poulin, head of Option Consommateurs’ legal services, “the imposition of these fees are in contradiction with the representations made by The Brick. Those representations are false or misleading.” The class-action seeks to obtain the reimbursement, for the benefit of class members, of a sum equivalent to the amounts charged as “an annual membership fee”. It also seeks to obtain the payment, per class member, of an amount of $100 as a reduction of their obligations. Finally, the class action seeks punitive damages in an amount of $5M.
Other retailers could be next
According to Option Consommateurs, since May 2009 other retailers have started to charge an annual membership fee to Quebec consumers taking advantage of “Buy now, pay later” offers. As such, the consumer group believes that other retailers could be targeted by class action suits similar to the one launched today.
Notice to consumers
Options Consommateurs invites consumers who have been charged an “annual membership fee” as part of The Brick’s financing offers, or any other retailers, to fill up an online questionnaire:
The Brick :
www.option-consommateurs.org/besoin/appel_a_tous/71/
Other retailers :
www.option-consommateurs.org/besoin/appel_a_tous/73/
Option Consommateurs is represented by the law firm Belleau Lapointe LP.
About Option Consommateurs.
Created in 1983, Option Consommateurs is a not-for-profit association dedicated to defend and promote consumers’ rights. It has initiated thirty class-action suits and closely monitors issues related to the energy sector, the agri-food industry, financial services and business practices.
Option Consonmmateurs claims that the retailer is misleading its clients through slogans such as “Do not pay for 15 months” and “No down payment, no monthly payment, no interest”. In reality, consumers relying on The Brick’s financing plan have, among other things, to pay an annual membership fee of $35.
Since April 1st, the financing plan “Buy now, pay later” comes with a membership fee charged by HSBC, one of the financial institutions managing The Brick’s financing offers. The retailer has recognized having requested from HSBC that they put a stop to this practice, but to no avail.
According to lawyer Stéphanie Poulin, head of Option Consommateurs’ legal services, “the imposition of these fees are in contradiction with the representations made by The Brick. Those representations are false or misleading.” The class-action seeks to obtain the reimbursement, for the benefit of class members, of a sum equivalent to the amounts charged as “an annual membership fee”. It also seeks to obtain the payment, per class member, of an amount of $100 as a reduction of their obligations. Finally, the class action seeks punitive damages in an amount of $5M.
Other retailers could be next
According to Option Consommateurs, since May 2009 other retailers have started to charge an annual membership fee to Quebec consumers taking advantage of “Buy now, pay later” offers. As such, the consumer group believes that other retailers could be targeted by class action suits similar to the one launched today.
Notice to consumers
Options Consommateurs invites consumers who have been charged an “annual membership fee” as part of The Brick’s financing offers, or any other retailers, to fill up an online questionnaire:
The Brick :
www.option-consommateurs.org/besoin/appel_a_tous/71/
Other retailers :
www.option-consommateurs.org/besoin/appel_a_tous/73/
Option Consommateurs is represented by the law firm Belleau Lapointe LP.
About Option Consommateurs.
Created in 1983, Option Consommateurs is a not-for-profit association dedicated to defend and promote consumers’ rights. It has initiated thirty class-action suits and closely monitors issues related to the energy sector, the agri-food industry, financial services and business practices.
