Class Action Launched Against Beverage Industry, Retailers and Encorp Pacific

The Consumers' Association of Canada today announced that on behalf of all consumers in British Columbia it has filed a major class action lawsuit against the beverage industry, retailers and Encorp Pacific. The focus of the lawsuit is the illegal use of consumer deposits
collected under BC's Beverage Container Stewardship Program Regulation.

Dozens of companies such as Coca-Cola Bottling, Save-On Foods, Wal-Mart
and London Drugs are named in the lawsuit. Encorp Pacific is the beverage
container agency, the authorized steward approved by the BC Government under
the regulation.

"The BC beverage container regulation is very clear," said Mr. Bruce
Cran, President of the Consumers' Association of Canada, "deposits collected
from consumers can only be used for one purpose - paying refunds to consumers
when containers are returned. Since 1998 the industry has collected and used
over $70 million in consumer deposits for purposes that are not authorized
under the regulation."

For example, consumer deposits were used to pay damages awarded as a
result of a lawsuit against the beverage container agency for improper conduct
in the operation of its stewardship plan.

When the Beverage Container legislation was introduced the Government
made clear that this legislation was based on an industry stewardship model
reflecting the polluter pay principle. "At the time beverage containers were
filling up landfills and costing municipalities millions of dollars each year
to manage," said Mr. Cran.

"The purpose of the legislation was to have industry assume
responsibility for its polluting product by putting into place a recycling
system and paying the costs of this system," said Mr. Cran. "The consumers'
role was to pay the deposit, incur the costs of returning the container and
then obtain a refund when the container was returned. To date, consumers have
carried out their responsibility to a high level and recycling is a major
success in the province."

Not only did the beverage industry use consumer deposits for purposes not
authorized by the regulation they also imposed an additional unauthorised
recycling fee on top of the deposit. Since 1999 the beverage industry has
collected about $60 million from its Container Recycling Fee without having
any legislative authority for this levy. "Simply stated, it's an illegal fee,"
said Mr. Cran.

"The industry shifted all its polluter pay costs onto the backs of
consumers and did so without any legislative authority," said Mr. Cran. "It's
time the industry started paying its fair share of the costs for managing its
product."

For further information: Contact Mr. Bruce Cran, Tel. (604) 418-8359