Cineplex Faces $38.9M Fine for Deceptive Online Booking Fees
The Canadian theater chain plans to appeal the penalty and modify its website to clarify the fee structure for online ticket purchases.
- Cineplex was fined $38.9 million by Canada's Competition Tribunal for allegedly misleading consumers with unclear online booking fees.
- The company has been charging a $1.50 fee for online ticket purchases since June 2022, which is waived or reduced for loyalty program members.
- Cineplex disagrees with the ruling and has filed an appeal, arguing that the fee is disclosed and can be avoided by buying tickets in person.
- Despite the fine, Cineplex reported a quarterly revenue of $395.6 million, a decrease from the previous year, alongside a net loss of $24.7 million.
- Theater attendance dropped by 15.5% year-over-year, but box office and concession revenue per patron have increased, indicating higher spending per visitor.