TELUS v Wellman: SCC Rules Business Customers Can No Longer Piggyback On Consumer Class Actions

In a 5-4 split in TELUS Communications Inc. v. Wellman, the Supreme Court of Canada (SCC) held that, in the context of consumer class actions, business customers remain bound by arbitration clauses in agreements.¹ The April 4 decision clarifies the reach of the protections under the Ontario Consumer Protection Act (CPA), and the validity of standard form arbitration clauses in the context of class actions involving both consumers and non-consumers.

What you need to know

• Business customers will not be included as class members in consumer class actions where the agreement at issue contains a valid arbitration clause. Although arbitration clauses are generally invalid in the context of consumer agreements, business customers do not qualify as consumers and cannot invoke the protections under the CPA by piggybacking onto consumer claims.