The Canadian Competition Tribunal has ruled against Cineplex for deceptive advertising practices involving online booking fees. The company has been ordered to pay a significant financial penalty.
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| The Tribunal has ruled against Cineplex for deceptive advertising practices involving online booking fees. The company has been ordered to pay a significant financial penalty. Symbolic Image |
Ottawa, Canada – September 23, 2024:
Canadian movie theater chain Cineplex has been ordered to pay a record penalty of nearly $39 million after being found guilty of engaging in drip pricing. The Canadian Competition Tribunal ruled in favor of the Competition Bureau, determining that Cineplex's practice of adding a mandatory $1.50 online booking fee constituted deceptive advertising.
The Tribunal found that Cineplex's website and mobile application misled consumers by presenting contradictory and incomplete information about ticket pricing. The online booking fee was not clearly disclosed upfront, leading consumers to believe they were paying the advertised price.
As a result of the ruling, Cineplex has been ordered to pay a financial penalty of over $38.9 million and legal costs. The penalty is equivalent to the amount the company collected from consumers through the online booking fee from June 2022 to December 2023.
Matthew Boswell, Commissioner of Competition, praised the Tribunal's decision, stating, "This is a resounding win for Canadians. It sends a strong message that businesses should not engage in drip pricing and must display their full prices upfront."
The Tribunal also ordered Cineplex not to engage in similar deceptive practices for a period of 10 years. This ruling serves as a significant deterrent to businesses that may consider adopting similar tactics.
The Competition Bureau has been actively working to combat drip pricing and has taken action against various industries, including car rental, satellite radio subscriptions, and online ticketing. The Bureau encourages consumers to report any suspected cases of drip pricing through its online complaint form.