Cineplex Fined $38.9 Million for Deceptive Marketing Practices

Cineplex Inc. has been ordered to pay a substantial $38.9 million fine after a ruling by the Competition Tribunal, which found the theatre chain guilty of deceptive marketing tactics.

The case, initially brought forward last May, centered around claims that Cineplex misled customers by not displaying the full price of a movie ticket upfront when purchasing seats online. The key issue was a $1.50 online booking fee introduced in June 2022 for customers not enrolled in the company’s loyalty or subscription programs.

Drip Pricing and Junk Fees

The $1.50 fee was labeled as “drip pricing,” a practice where the total cost of a purchase isn’t fully disclosed until later in the transaction process. Commonly referred to as “junk fees,” drip pricing was recently highlighted as a harmful business practice in updates to the Competition Act.

Cineplex’s Denial

Cineplex denied these allegations, stating that moviegoers are informed of all applicable fees before completing their purchases. Despite this defense, the tribunal ruled against the company.

10-Year Ban on Deceptive Practices

In addition to the fine, the tribunal has prohibited Cineplex from engaging in drip pricing or similar practices for the next 10 years. Matthew Boswell, the commissioner of competition, emphasized the importance of transparency in pricing, warning that businesses failing to comply with these regulations face serious financial consequences.

The $38.9 million fine reflects the total amount Cineplex earned from the $1.50 online booking fee during the period from June 2022 to December 2023.