Cineplex to Appeal $29M Fine For Deceptive Movie Ticket Pricing

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As a long-time movie enthusiast who has spent countless hours at Cineplex cinemas across Canada, I find myself both surprised and dismayed by the recent decision by the Competition Tribunal. While I appreciate the need for transparency and fairness in business practices, I cannot help but feel that this ruling may have unintended consequences for a company that has provided so much enjoyment to countless Canadians over the years.

The large Canadian cinema company, Cineplex, has announced its intention to challenge a CA$38.9 million (approximately US$29 million) penalty, following a ruling that it had engaged in misleading advertising tactics by the Competition Tribunal.

Cineplex expressed disapproval and intends to challenge the decision, including the $39 million fine, in the Federal Court of Appeal. To make things clear, this judgment does not affect our ability to provide this additional service to customers. We trust that our clients make thoughtful purchasing decisions and are certain that our online booking fee is transparently disclosed in a manner consistent with legal requirements.

On Monday, the Competition Tribunal, which is responsible for resolving competition-related cases at the federal level, agreed with the Federal Competition Bureau’s assertion that Cineplex had been using misleading pricing tactics by failing to clearly display a $1.50 fee for customers booking movie tickets online in advance.

The court ruled that Cineplex’s online ticket prices, as displayed on their website and app, were found to be deceptive drip pricing. This was because consumers were misled by inconsistent and incomplete information about the tickets provided on Cineplex’s ticketing page, according to a statement issued by the Competition Bureau following the court decision.

The fines and legal expenses levied against Cineplex are intended to match the amount of money Cineplex is alleged to have earned from Canadian consumers through online booking fees during the period from June 2022 to December 2023.

Customers deserve transparent information and should not encounter unexpected extra charges or hidden fees. When companies resort to deceptive or confusing tactics, they undermine fair competition and hurt businesses that adhere to legal standards,” the Competition Authority stated.

However, Cineplex contested the Competition Tribunal’s decision by asserting that the online booking fee was not compulsory. They explained, “This fee ensures moviegoers can secure their tickets and specific seat locations before they physically arrive at a theatre. The fee is clearly displayed on our website and mobile application for transparency.

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2024-09-24 18:25