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ARTICLE · 02 MAY 2019

SCC Rules No Piggybacking On Consumer Claims For Business Customers Due To Arbitration Provisions

The decision provides important guidance on Ontario's Consumer Protection Act, class actions and arbitration issues.

CanadaLitigation, Mediation & Arbitration

A recent Supreme Court of Canada1 decision firmly settles lingering uncertainty over partial stays of litigation in Ontario in favour of domestic arbitration. The decision provides important guidance on Ontario’s Consumer Protection Act, class actions and arbitration issues.

Background

Wellman, a previous TELUS customer, commenced a proposed class action on behalf of approximately two million cellular service subscribers in Ontario: 70 per cent consumers and 30 per cent business customers. Wellman alleged TELUS engaged in an undisclosed practice of rounding up calls to the next minute, overcharging customers and short-changing them of their full number of minutes.

All of TELUS’s customers agreed to standard terms and conditions when they subscribed to the service, including a provision requiring all billing disputes be resolved by arbitration. According to subsection 7(2) of the Consumer Protection Act,2 consumers cannot be precluded from bringing an action in

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