Governments must refund money they collect through unconstitutional taxes, and cannot rely on the so-called “”passing-on”" defence to avoid repayment, the Supreme Court ruled in January 2007.The court’s rejection of the passing-on defence may have major implications in private litigation, particularly competition (antitrust) cases.

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Can consumers who obtain a defective product for free recover profits earned by the manufacturer, even though those consumers suffer no damages whatsoever? Most non-lawyers would likely say: no. However, the Ontario Divisional Court recently affirmed a decision certifying a class action against Johnson & Johnson that raises this question.

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Settlements have been reached in two class actions alleging price fixing in the market for two kinds of synthetic rubber as well as polyester staple.

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