TORONTO - Cineplex Inc. has been ordered to pay a record $38.9 million fine after the Competition Tribunal found the theatre owner guilty of deceptive marketing practices.
The tribunal has now sided with the Competition Bureau in a case brought forward last May by the watchdog, in which Cineplex was accused of deceiving theatregoers by not immediately presenting them with the full price of a movie ticket when purchasing seats online. The bureau said the deception lay in a $1.50 online booking fee Cineplex began charging in June 2022 to many customers not enrolled in its loyalty and subscription programs.
The bureau alleged the fee constituted “price dripping,” a practice when customers are drawn into a purchase without full disclosure of the final cost. Cineplex denied the accusations, saying moviegoers are promptly told about fees they may face. The $38.
9 million fine Cineplex has now been handed is equivalent to the amount it collected from consumers through the $1.50 online booking fee between June 2022 and December 2023. This report by The Canadian Press was first published Sept.
23, 2024. Companies in this story: (TSX:CGX).
