Cineplex Hit with $39 Million Fine for Deceptive Pricing Practices in Canada

Cineplex has been ordered to pay nearly $39 million after Canada’s Competition Tribunal determined that the cinema chain participated in deceptive marketing practices, according to Reuters. The decision, announced by the Competition Bureau on Monday, highlighted Cineplex’s use of drip pricing tactics, where an online booking fee of $1.50 was added to the advertised ticket price.

The penalty is equivalent to the total amount Cineplex received from consumers due to the online booking fee, which was implemented in June 2022 and continued until December 2023. In response to Canada’s ruling, Cineplex announced its intention to appeal the Tribunal’s decision, asserting that it would not affect the company’s ongoing provision of what it describes as a “value-added service” to customers.

The Competition Bureau initiated legal action against Cineplex in 2023, alleging that the company misled consumers by advertising lower ticket prices while failing to disclose the mandatory fee until the checkout process. The Bureau emphasized that the ruling underscores the necessity for businesses to present their complete pricing clearly and upfront. “The Tribunal’s decision sends a strong message that businesses should not engage in drip pricing,” the Bureau stated.

This case raises important questions about transparency in online pricing and the responsibilities of businesses to provide consumers with clear information before purchase. As Cineplex prepares to contest the ruling, the implications of the decision could resonate throughout the cinema industry and beyond.

Source: Reuters