Cineplex was found guilty of deceptive marketing practices on Tuesday and ordered to pay a record penalty of up to $39 million by the Competition Tribunal.
Back in May 2023, the entertainment co. was found by the Competition Bureau to have engaged in “drip pricing” – a harmful business practice in which a company offers low prices to attract customers but then adds mandatory fees, making the price unattainable – by tacking on a $1.50 fee to each online booking without telling theatregoers.
As a result, Cineplex has been fined the equivalent amount that was collected from consumers between June 2022 and December 2023, and ordered not to engage in the practice, or any similar conduct, for the next 10 years.
According to the National Post, the company denies having not told moviegoers about the fees that come with purchasing online and not in-person. Cineplex stated that the fees were displayed on its website and app “in a clear and prominent manner” and added that it will appeal the fine.
Over the years, the Competition Bureau has taken action against drip pricing in the car rental, satellite radio subscriptions, online sporting and entertainment ticketing industries.