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contractual obligations

Class actions Quebec Quebec Court of Appeal Rulings

Quebec telecom company ordered to pay more than $3 million in punitive damages

A Quebec telecommunications firm, Vidéotron Inc., has been ordered to pay more than $3 million in punitive damages to consumers who were charged extra when the Internet service provider unilaterally modified the terms of their so-called “Extreme High Speed” service, held the Quebec Court of Appeal.

In a decision that examines the scope of contractual obligations, the appeal court held that a unilateral modification clause contained in the contract did not authorize Vidéotron to impose fees that “had not been agreed to in the initial contract or to modify goods and services described” in the contract. The unilateral clause in this case would have meant that consumers waived their rights conferred by sections 12 and 40 of the Quebec Consumer Protection Act (Act) – and that is prohibited by sections 261 and 262 of the Act.…

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