Brian Radnoff discusses how SCC decisions may mean more consumer class actions in this article. Brian N. Radnoff is a Partner and Chair of the Canadian Litigation Practice Group. He works at the law firm Dickinson Wright. He focuses on commercial and corporate lawsuits.
If you’ve been watching recent Supreme Court of Canada rulings, you might have noticed a shift that’s got many businesses sweating. The courts are making it way easier for consumer class actions to move forward, which means more companies will find themselves in legal hot water. If you’re a consumer, this is excellent news. If you’re a business? Not so much.
I’ve been working in commercial litigation for years, and let me tell you—what used to be a tough uphill battle for consumers is starting to feel like a much smoother ride. The Supreme Court of Canada has clarified that they’re leaning toward making it easier for consumers to band together and sue over misleading advertising, shady fees, and defective products.
Why This Matters for Everyone
Class actions used to get shut down left and right because courts were super picky about proving common harm across a large group of people. Businesses could easily argue that everyone’s situation was too different to lump together in a lawsuit. Not anymore. Courts say, “If enough people are affected similarly, that’s good enough to move forward.”
Take a recent case involving a big telecom company accused of sneaking hidden fees into their contracts. Before, that case might not have gone anywhere because each customer might have experienced different impacts. But now? The courts are likelier to say, “Yeah, this looks like a pattern—let’s hear it out.”
From what I’ve seen, businesses are scrambling to figure out how to minimize their risks. Some are revising their contracts, others are investing heavily in compliance, and a few are just crossing their fingers and hoping they don’t get sued. Spoiler: Hope isn’t a great strategy.
Consumer class actions changes in the law
A few key Supreme Court of Canada decisions have set a precedent that makes it easier to certify class actions. Before, a business could argue that everyone had a unique situation, forcing the case to drag on forever. Now, courts are taking a broader view—the case is more likely to advance if there’s a common issue.
For example, in a recent banking case, customers claimed they were misled about fees hidden deep in the fine print. The SCC said, “If enough people got the same treatment, that’s enough to proceed.” This is huge because it lowers the bar for what counts as a “common issue.”
Also, the courts are no longer letting businesses throw out cases based on technicalities. Before, if you couldn’t prove damages right away, your case might have been dead in the water. The courts say, “Let’s worry about damages later—first, let’s see if the issue holds water.”
What Businesses Should Be Doing (But Probably Aren’t)
If you’re running a business dealing directly with consumers—especially in industries like retail, telecom, or finance—you should be rethinking your entire legal strategy. Many companies have relied on buried contract clauses or arbitration agreements to avoid lawsuits, but that won’t cut it anymore.
I’ve seen companies blindsided by class actions they thought they’d dodged. One client—a major retailer—got hit with a claim over false environmental marketing claims. Before the recent legal changes, they might have been able to swat it away. This time? They ended up settling for millions because the courts were more willing to let the case proceed.
If you’re in business, here’s what you should be doing right now:
- Review your contracts – Those fine-print tricks you thought were clever? They’re probably going to get you sued.
- Be transparent – Don’t try to bury key details if you’re selling something. Customers are getting savvier, and the courts are on their side.
- Get your legal team involved early – Waiting until you get hit with a lawsuit isn’t wise. Start figuring out where you’re exposed now.
Consumer class actions and the impact on consumers
For consumers, this is a win. If you’ve ever felt like a company took advantage of you but couldn’t do anything about it, now’s your chance. Class actions are becoming a real option for fighting back, and more lawyers are taking these cases on because they know the courts are listening.
Say you got charged bogus fees by your bank, or your internet provider promised you one thing but gave you something completely different. Instead of just eating the cost or spending hours arguing with customer service, you might have a shot at joining a class action and getting some compensation.
If you think you’ve got a valid claim, it’s worth looking into. More and more of these cases are getting certified, and companies are forced to take responsibility in ways they haven’t before.
