The Competition Tribunal ruled on September 23 that Cineplex must pay a record penalty of over $38.9 million after being found guilty of deceptive pricing practices.
The case, brought forward by the Competition Bureau, centered on Cineplex’s use of a $1.50 online booking fee, which the Tribunal determined misled consumers.
The Tribunal found that Cineplex’s website and app provided incomplete information about ticket prices, deceiving customers by adding extra fees during the checkout process, a practice known as “drip pricing.” The penalty reflects the total amount Cineplex collected from the fee between June 2022 and December 2023.
“The Tribunal’s decision in the Cineplex case is a resounding win for Canadians. It sends a strong message that businesses should not engage in drip pricing and need to display their full prices upfront. Businesses that fail to comply with the law risk significant financial penalties,” said Matthew Boswell, Commissioner of Competition in a statement.
Cineplex has also been ordered to stop using such pricing tactics for the next 10 years. The ruling follows changes to the Competition Act in 2022, which explicitly banned drip pricing.
The online booking fee charge was extremely controversial and Cineplex tried to gaslight customers this year by claiming they were “completely avoidable” by purchasing tickets at theatres instead. Scene+ members could also get a discount on the booking fee (50 cents off), while CineClub members had the fee waived.
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So 39 millions for a 1$ fee, but the carrier can charge 70$ to take our money every month. Seem logic …
Lol
Landmark next please!