The Competition Bureau has initiated legal proceedings against Cineplex, accusing the company of advertising movie tickets at lower prices than what consumers actually have to pay.
ScreenX Auditorium (CNW Group/Cineplex)
The Bureau’s investigation revealed that Cineplex adds a mandatory $1.50 online booking fee to the advertised ticket price, preventing many customers from purchasing tickets at the advertised rates on the website or mobile app.
The Bureau alleges that Cineplex’s online booking fee falls under the category of misleading drip pricing, which refers to the inclusion of additional charges or fees that are not clearly disclosed upfront. Recent amendments to the Competition Act have recognized drip pricing, except when such charges are imposed by the government, as a deceptive business practice.
According to the Bureau, Cineplex has generated significant revenue since introducing the online booking fee in June 2022. As a result, the Bureau has filed an application with the Competition Tribunal, seeking several remedies. These include stopping deceptive advertising, imposing a penalty on Cineplex, and ensuring restitution for affected consumers who purchased tickets through Cineplex’s website or app.
The legal action taken by the Competition Bureau emphasizes the importance of transparent pricing practices and protects consumers from deceptive marketing strategies. If successful, the case against Cineplex could set a precedent for businesses to provide clear and accurate information regarding additional charges, benefiting consumers across various industries.