Cineplex Fined $38.9M for Deceptive Online Booking Fees
The Competition Tribunal ruled that Cineplex's $1.50 online booking fee misled consumers, prompting a record penalty.
- Cineplex Inc. plans to appeal the $38.9 million fine imposed by the Competition Tribunal for deceptive marketing practices.
- The tribunal found Cineplex guilty of 'drip pricing,' where additional fees were not disclosed upfront to consumers.
- The $1.50 online booking fee was introduced in June 2022 and affected customers not enrolled in Cineplex's loyalty programs.
- The fine is equivalent to the total amount collected from consumers through the online booking fee between June 2022 and December 2023.
- Experts predict the ruling will lead to increased scrutiny and potential actions against other companies using similar pricing tactics.