Tue Sep 24 03:42:43 UTC 2024: ## Cineplex Hit With Record $38.9 Million Fine for Deceptive Marketing Practices
**Toronto, Canada** – Cineplex Inc., Canada’s largest movie theatre chain, has been ordered to pay a record $38.9 million fine by the Competition Tribunal for deceptive marketing practices. The ruling stems from a case initiated by the Competition Bureau in May 2023, alleging that Cineplex misled customers by not clearly disclosing a $1.50 online booking fee.
The Tribunal found that Cineplex’s website and app did not clearly present the full price of a ticket upfront, hiding the booking fee until the final checkout stage. This practice, deemed “drip pricing”, was deemed deceptive by the Tribunal.
Despite the ruling, Cineplex will continue charging the booking fee. The Tribunal’s concern was solely focused on the lack of transparency regarding the fee, not its existence itself.
“This is a win for Canadians,” stated Innovation, Science and Industry Minister François-Philippe Champagne, highlighting the effectiveness of the reformed Competition Act.
The $38.9 million fine imposed on Cineplex is equivalent to the total amount collected through the booking fee between June 2022 and December 2023. Additionally, Cineplex is prohibited from engaging in similar practices for the next 10 years.
While some customers expressed satisfaction with the penalty and its deterrent effect, others remain unsure about the impact on their daily experience, questioning whether the fee will be incorporated into ticket prices.
The Competition Bureau argues that the case sets a precedent for increased transparency in online pricing and encourages companies to clearly display all fees upfront. However, experts like Keldon Bester from the Canadian Anti-Monopoly Project suggest that the focus should be on eliminating such “junk fees” entirely, not just improving their transparency.
Cineplex vehemently denies any wrongdoing and insists the booking fee is clearly presented on their website and app. The company maintains that customers are informed about potential fees and can avoid them by purchasing tickets in person.
The full reasons behind the Tribunal’s decision, including specific details regarding pricing disclosure, are expected to be released next week. This information will be closely monitored by businesses across the country, as it could set a new standard for online pricing practices.
First Piper 