Canada Post is facing a certified class action lawsuit from small businesses over fuel surcharges, after a Federal Court judge ruled the case should proceed despite objections from the Crown corporation.Federal Court Justice Jocelyn Gagné approved the lawsuit on behalf of an undetermined number of commercial customers who claim they were unfairly charged up to 26% in fuel surcharges. Blacklock's Reporter said Canada Post had argued the charges were standard in the delivery industry and sought to have the case thrown out.“Access to justice is enhanced by resolving common questions,” Gagné wrote in her ruling, noting that small financial claims often deter individuals from pursuing legal action alone. .The lead law firm, Hammerco Lawyers LLP of Vancouver, declined to say how many businesses may be affected or what total amount is in dispute.According to the court, Canada Post applies a fuel surcharge that changes monthly or weekly to reflect fuel costs. In April 2024, the surcharge was 26% for domestic deliveries and 16% for shipments to the United States.“The fuel surcharge is certainly obligatory,” wrote Gagné. “Users have no choice but to pay it if they want to complete the transaction.”While Canada Post argued the surcharge was variable depending on destination, package size and service level, plaintiffs claimed the charges violated the Competition Act because they were not disclosed upfront..Canada Post responded that all pricing information is posted transparently online.Gagné stressed that certification of the lawsuit does not determine whether the claim is valid, only that it qualifies to move forward as a class action.Canada Post has defended its use of fuel surcharges as a common industry practice. “Everyone uses this tool in the market,” testified Serge Pitre, vice-president at Canada Post, during 2022 parliamentary hearings. He added that the surcharge is adjusted through a price index to manage fluctuating fuel costs and is not tied to specific regions.
