Top Court Expands Scope Of Potential Liability In Price-Fixing Class Actions

The Supreme Court of Canada has released its long-awaited decision in two companion appeals that have significant implications for class actions alleging conduct that contravenes the criminal provisions found in Part VI of the Competition Act (Act).

In its decision in Pioneer Corporation v Godfrey and Toshiba Corporation v Godfrey (Godfrey), the Supreme Court confirmed, among other things, that "umbrella purchasers" can assert claims in connection with alleged price-fixing conspiracies. Umbrella purchasers are purchasers who acquire products directly or indirectly from non-conspirators, but who nevertheless allege they were overcharged because price-fixing by the conspirators caused firms that did not participate in the conspiracy to raise their prices.