Law firm says SQDC broke provincial rules with “rotating” SKU pricing

Media Partners, Stratcann

This post is presented by our media partner Stratcann
View the original article here.

image

A law firm in Quebec has modified an application for a class action suit against the Société québécoise du cannabis (SQDC) relating to how the provincial cannabis retailer priced their products. 

On November 15, 2024, lawyers at Groupe SGF amended an application for authorization to include what they say is a claim that the SQDC admitted they sold “rotating” SKUs at a lower price than regular SKUs, potentially violating provincial cannabis rules. 

Groupe SGF first filed a class action suit against the SQDC earlier this year on behalf of the plaintiff, Gabriel Bélanger, alleging the provincial cannabis agency does not comply with the Consumer Protection Act (CPA). In that case, Bélanger argues that the SQDC forces people to make “blind purchases” of cannabis products listed on their website.

In a press release last May, the SQDC said it was taking the time to look into the issue properly but noted that its initial comment was that it disagreed with the applicant’s claims and intended to contest the application.

Lawyers at Groupe SGF say they believe that the class action is now open to all cannabis consumers who purchased so-called “Non-Rotating” products from the SQDC, whether online or in-store. Groupe SGF says this would have meant consumers paid a higher price for the same product than if it had been put in a product with a variety displayed as “in rotation”.

The lawyers for the plaintiff, Mr. Gabriel Bélanger, believe that all of this is in violation of the prohibition on providing a discount to the consumer on the price of cannabis as per Quebec’s Cannabis Regulation Act.

This amendment may still require approval by the Court, notes Bélanger’s lawyers, who believe that at this stage, such a request should be granted. If not granted, they say they will file a new class action. 

The original class action includes anyone who has purchased cannabis in the “dried flower” and “pre-rolled” categories for which the strain displayed on the SQDC website has been “strain rotating” since October 17, 2018.

A media representative for SQDC tells StratCann that the agency will take the time to review those allegations.

“However, we remain confident that we comply fully with the law and that we respect our customers’ interests,” the representative added in an email.

Loading

This post was originally published by our media partner here.