Question
In March 2020, approximately 20,000 individuals that live in Ontario entered into contracts with Clean Health Corp. (CHC). CHC aggressively marketed a sanitizer solution it
- In March 2020, approximately 20,000 individuals that live in Ontario entered into contracts with Clean Health Corp. (CHC). CHC aggressively marketed a sanitizer solution it manufactured[JS1] with a claim that it kills 99.9% of Covid-19 in your house. The contract was for 12 months at a price of $49.95 per month plus actual shipping costs. The shipping cost was not stated. Buyers agreed that purchase amounts would be charged to their credit card. CHC has been charging their customers $49.95 plus $60.00 of shipping costs. Items are shipped by Canada Post which charges $9.00 for shipping. CHC claims that the $51 difference represents office administrative costs (fixed and variable) associated with shipping.
A professor at Guelph University has stated that their research shows that CHC does not have any scientific evidence to support their 99.9% claim. The professor also noted that soap and water has the same effect at killing the Coronavirus as the CHC product.
The request to you Jamie is 1. What legal arguments (if any) could be made to stop the contract with CHC, and that would potentially allow a full refund to customers; 2. Assuming that CHC resisted and a court action was required, could the plaintiff action proceed as a class action proceeding; and 3. Who would responsible to pay the legal costs associated with such an action?
[JS1]Seemed redundant to say marketed twice
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