What is a Class Action in Quebec?
In Quebec, class actions are a crucial legal mechanism for addressing harms suffered by large groups of people, particularly in areas such as environmental protection, data privacy, labor law, and consumer protection. These cases often involve small individual damages, making individual lawsuits impractical or impossible. Class actions level the playing field by allowing a representative to advocate for the interests of thousands of people.
What is a Class Action?
Under article 571 of the Code of Civil Procedure (C.C.P.), a class action is a procedural tool that enables one person, a member of a larger group, to sue on behalf of all other members without requiring their individual mandate. It is particularly useful when many people are affected by the same issue, but individual claims would be impractical.
When Can a Class Action Be Initiated?
Before a class action can proceed, it must be authorized by the court (article 574 C.C.P.). The judge evaluates whether the motion meets four legal criteria (article 575 C.C.P.):
- Commonality: The claims of the group members raise identical, similar, or related questions of law or fact.
- Appearance of right: The alleged facts appear to justify the relief sought.
- Group composition: The size and nature of the group make it difficult or impractical to use mandates or consolidate individual actions.
- Adequate representation: The proposed plaintiff must be capable of adequately representing the group.
If these conditions are met, the court authorizes the class action and designates the representative.
Who Can Initiate a Class Action?
- Any individual or legal entity that is part of the affected class can request authorization (article 571 C.C.P.). The representative does not need a mandate from each member (article 571 C.C.P.) but must be able to adequately represent the group’s interests (article 575(4) C.C.P.).
- Entities such as associations or non-profit organizations (even without legal personality) can also act on behalf of a class, provided a representative from the group is a class member and the issue aligns with the entity’s purpose (article 571 C.C.P.).
Role of the Representative and the Lawyer
Under article 87(2) of the Code of Civil Procedure, in contentious class action proceedings, the representative must be represented by a lawyer. In non-contentious proceedings, representation may be provided by a lawyer or a notary.
The lawyer’s role is critical and multifaceted. Class actions often arise when a lawyer identifies similar harms among clients. From that point, the lawyer not only represents the plaintiff class but also acts as a strategic advisor and advocate throughout the judicial process. Additionally, the lawyer may negotiate a settlement with the defendant, seeking an agreement that serves the class’s interests.
Concrete Examples (Consumer, Data Privacy, Environment, etc.)
A striking example is the recently authorized class action against Dollarama and other major retailers in Quebec. These companies were accused of greenwashing, making misleading environmental claims by labeling their reusable plastic bags as “recyclable” when they were not accepted in Quebec’s municipal recycling programs.
The court found that the plaintiff met the appearance of right criterion, presenting credible allegations warranting a trial. It emphasized that a product is not recyclable simply because it could theoretically be processed; it must be practically accepted by local recycling facilities. The court also rejected the argument that the presentation of the bags at checkout (e.g., folded or less visible) excused the misrepresentation. It held that the use of the term “recyclable” on the packaging was sufficient to mislead consumers.
This case reflects a broader legal and regulatory trend in Quebec and Canada. Companies are increasingly held accountable for false or exaggerated environmental claims through private enforcement mechanisms like class actions. Meanwhile, consumers and advocacy organizations use class actions to protect the public interest. This trend is reinforced by recent amendments to the Competition Act , which provide stronger legal tools to challenge greenwashing and deceptive marketing practices.
Class actions in Quebec are not limited to environmental law. They are also vital in areas like data protection and consumer rights. For example, in 2019, the Quebec Superior Court authorized a class action against MGM Resorts International following a massive data breach. This action sought compensatory and punitive damages, highlighting the importance of corporate accountability in protecting personal information.
Advantages and Disadvantages of a Class Action
Class actions are a powerful legal tool that allows a group of people, often victims of similar harm, to unite for redress through a single lawsuit. In Quebec, the class action regime aims to promote access to justice, particularly in cases where individual damages are modest, making individual lawsuits too costly or burdensome.
However, like any legal mechanism, class actions have strengths and limitations. Below is an analysis of the advantages and disadvantages, particularly compared to individual lawsuits.
1. Advantages of a Class Action
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Collective Strength and Public Interest Protection
A key advantage of class actions is their collective strength. Rather than facing a defendant alone, individuals are supported by a group with similar experiences, increasing pressure on defendants to settle and avoid reputational damage from prolonged litigation.Class actions also provide protection in sensitive cases, such as employment disputes. Many employees fear retaliation if they act alone. In a class action, only the representative is named, allowing others to remain anonymous and seek justice more safely.
The public interest is further protected through judicial oversight. Under article 590 CCP, no settlement, offer acceptance, or acquiescence in a class action is valid without court approval. This process ensures that group members are informed, guaranteeing transparency and protection of collective rights.
2. Economic Accessibility
Class actions eliminate financial barriers that often prevent individuals from seeking justice, especially against well-funded corporations or institutions. Typically, members pay no upfront legal fees, with lawyers compensated on a contingency basis, receiving payment only if a settlement or favorable judgment is achieved (article 593 CCP). This model allows individuals who could not afford litigation to exercise their rights without financial risk.
3.Procedural Efficiency and Automatic Inclusion
Class actions enhance judicial efficiency by consolidating numerous similar claims into a single proceeding. This reduces repetitive legal processes, saves judicial resources, and lowers costs for plaintiffs and the legal system.
Quebec adopts an opt-out model for class actions (article 580 CCP). Individuals within the defined group are automatically included in the proceedings unless they expressly choose to opt out. This approach eliminates the need for registration or additional legal formalities to participate.
4.Accountability and Prevention of Future Harm
Beyond compensation, class actions serve a unearth and corrective function. They help prevent misconduct and promote systemic change by exposing harmful business practices, compelling companies to improve compliance, and encouraging regulatory oversight. For example, class actions related to greenwashing not only compensate victims but also establish legal and ethical standards for corporate behavior. By signaling that misconduct has consequences, they help prevent similar harms in the future.
Disadvantages of a Class Action
1.Limited Individual Control
A notable drawback of class actions is the limited role of individual members in the judicial process. Once the class is authorized and representatives and lawyers are appointed, they assume control of major decisions. For example, while members may request intervenor status under article 579 CCP, they can only intervene to support or bolster the representative’s motion or arguments. Additionally, the court may limit an intervenor’s right to file procedural documents or participate in the trial (article 586 CCP), restrictions that do not apply to representatives and lawyers.
For members wishing to share their personal story or present specific legal arguments, this limited involvement can be frustrating.
2.Binding Results and Loss of Individual Action
Group members are bound by the court’s decision unless they opt out (article 591 CCP). If the class action is dismissed or results in an unfavorable settlement, members are generally barred from pursuing individual action on the same issue. Moreover, even in successful cases, the outcome may be less than what an individual could have obtained through a personal lawsuit, especially if their damages exceed the class average.
3.Potential for Lower Compensation
Since the settlement or judgment is divided among all group members (article 596 CCP), individual compensation can be relatively modest. After deducting legal fees and distributing the remaining funds (article 593 CCP), the amount each member receives may be significantly lower than what could have been obtained through an individual lawsuit. For those who have suffered significant or lasting harm, this may be a compelling reason to consider an individual action instead of participating in a class action.
Should You Participate in a Class Action?
The decision to participate in a class action depends on your circumstances. If your claim is modest and the issue affects a large number of people, a class action may be the most practical and effective way to seek compensation. You include no upfront costs, legal formalities are minimal, and you benefit from the outcome if successful.
However, if your damages are significant or you want greater control over the legal strategy and presentation of your case, you should consult a lawyer to determine whether an individual claim would better serve your interests.
Author : Jingyi Wang, LLM McGill University, LLB Wuhan University
