On March 18, 2024, the United States Securities and Exchange Commission (the “SEC”) announced that it settled charges against two investment advisers for making false and misleading statements about their purported use of artificial intelligence (AI). This SEC enforcement action marks the latest efforts by securities regulators to combat the adverse effects of “AI washing” and confirms that AI, and particularly “AI washing”, is at the forefront of securities regulators’ minds. What is “AI washing”?…
Introduction On November 25, 2022 the Ontario Court of Appeal released three decisions clarifying the scope of the common law tort for invasion of privacy called “intrusion upon seclusion”. These cases are Owsianik v Equifax Canada Co., Obodo v Trans Union of Canada, Inc. and Winder v Marriott International, Inc. The issue before the Court was âwhether a claim for intrusion upon seclusion can succeed against the collectors and custodians of private information (“Database…
In Flesch v Apache Corporation, the Alberta Court of Appeal (“ABCA”) upheld the certification of an employee class action arising out of the cancellation of a long-term incentive compensation plan. This case is significant because the court discussed increasing its gatekeeping function in the certification of class actions, and it serves as a warning to employers who seek to amend or cancel incentive plans. Background In July 2017, the Apache Corporation (“Apache”), an American oil…
Introduction In Mohr v National Hockey League, 2022 FCA 145, the Canadian Federal Court of Appeal (FCA) dismissed an appeal from a motion to strike a proposed class action claim. The proposed representative plaintiff alleged an anti-competitive conspiracy among professional and major junior hockey leagues. This decision is significant because the FCA confirmed that prohibitions under section 45 of the Canadian Competition Act apply to “supply side” agreements only. They do not apply to “buy…
Justice Belobaba recently refused to certify a class action arising from the “diesel-gate” auto emissions scandal. In 2015, regulatory authorities announced that certain manufacturers had been installing “defeat devices” in their diesel vehicles to cheat on emissions tests and violate clean air laws. Unlike other class proceedings related to the scandal, this proposed class consisted of owners and lessees of vehicles who sold or returned their vehicles before the scandal was revealed (pre-disclosure owners). At…
In Godfrey v Pioneer, 2019 SCC 42 (âGodfreyâ), the Supreme Court of Canada has lowered the bar for certifying price-fixing class actions brought under the federal Competition Act, while also allowing new categories of claimants to participate as class members. The decision arose from a class action filed in British Columbia against a group of 42 foreign companies who manufactured optical disc drives and related products. The plaintiff alleged that the defendants conspired to fix…
CANADA – In Godfrey v Pioneer, 2019 SCC 42 (“Godfrey”), the Supreme Court of Canada has lowered the bar for certifying price-fixing class actions brought under the federal Competition Act, while also allowing new categories of claimants to participate as class members. The decision arose from a class action filed in British Columbia against a group of 42 foreign companies who manufactured optical disc drives and related products. The plaintiff alleged that the defendants conspired…
UNITED KINGDOM – A significant development in UK class actions landed today – with the English Court of Appeal issuing a judgment that requires the UK Competition Appeal Tribunal (“CAT”) to reconsider certification of an opt out class action issued against Mastercard on behalf of approx 46.2m people and valued at ÂŁ14.098bn. The judgment is published in full here and provides strong guidance to the CAT, indicating that a collective proceedings order will now be…
CANADA â Allegations of âAdd-on pricingâ, or âdrip pricingâ, have become a hot topic in recent years as consumers have moved towards making more purchases online. Drip pricing can be thought of as the incremental disclosure of additional fees. Bit-by-bit, these add-ons can cause a discrepancy between the final price of an item and the original listed price. One common example is the addition of airline baggage fees, which can dramatically increase total airfare prices. Other examples of drip pricing include:
- delivery fees for event tickets;
- municipal taxes charged by hotels;
- rental car insurance fees; and
- bank withdrawal fees.
While the concept of drip pricing has existed for some time, the advent of e-commerce has given rise to increased litigation and regulatory risk for businesses selling online services and products. Website interface design allows businesses to be more flexible in how they display and structure their pricing, however, the same flexibility can lead to pitfalls, prompting consumers to respond with class proceedings based on allegations of deceptive marketing practices.
In October 2011, the Ontario Securities Commission (âOSCâ) raised the concept of offering no-contest settlements of the sort commonly employed by the US Securities and Exchange Commission (âSECâ). On March 11th of this year, after receiving some sharply divided feedback in months of public hearings, the OSC announced that it was moving forward with the introduction of a policy that would permit settlement of enforcement proceedings without requiring an admission by the respondent of misconduct…