Big Alcohol Loses Case, Face Refunds of Millions of Dollars
Diageo, Campari, Beam Suntory, Brown Forman and other companies face the prospect of having to refund tens of millions of dollars to the Liquor Control Board of Ontario. The companies supply 70% of the spirits sold in Ontario. As of last April, the chargebacks totaled CAN$35.9 million (about
Diageo, Campari, Beam Suntory, Brown Forman and other companies face the prospect of having to refund tens of millions of dollars to the Liquor Control Board of Ontario.
The companies supply 70% of the spirits sold in Ontario. As of last April, the chargebacks totaled CAN$35.9 million (about US$26.30 million)
A clause in the LCBO's contracts required them to charge it the lowest price in Canada for their products. They argued the LCBO hadn't enforced the clause for a long time, and so it didn't have the right to now, a legal doctrine known as estoppel.
The judge didn't buy it: "The Applicants are sophisticated commercial entities. They were well aware of Ontario’s regulatory framework when they sold their products in Ontario. When they did so, they were required to comply with the Terms and Conditions of their supply contracts with the LCBO,” wrote Justice Peter J. Cavanagh, He also noted that each new order placed by the LCBO includes the same terms and conditions.