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ARTICLE · 17 JUNE 2011

Competition Law Update - B.C. Appeal Decisions Could Mark The End Of Indirect Purchaser Class Actions

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This spring, the B.C. Court of Appeal released two decisions that could mark the end of indirect purchaser class actions in Canada.

CanadaLitigation, Mediation & Arbitration
Scott Kugler
Scott Kugler
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This spring, the B.C. Court of Appeal released two decisions that could mark the end of indirect purchaser class actions in Canada.

In a price-fixing conspiracy, the manufacturers of competing products typically agree to increase the price of their products and not undercut each other.  The effect of the manufacturers' agreement is that the "direct" purchasers of their products pay more (the "overcharge") than they would have paid but for the price fixing conspiracy.  However, direct purchasers of the conspirators' product are often not the end users of the product.  In many cases, direct purchasers incorporate the conspirators' product into another product and sell that product to an end user.  This second level purchaser is referred to as an "indirect" purchaser. 

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