Canadian exhibition giant Cineplex says it will appeal a CAN$38.9 million (US$29 million) fine after being found liable for deceptive marketing practices by the Competition Tribunal.
“We are shocked and disagree with the decision and will appeal to the Federal Court of Appeal, including the $39 million administrative monetary penalty. To clarify, this ruling has no impact on the continuation of offering this value-added service to consumers. We believe our guests make informed purchase decisions and remain confident our online booking fee is presented in a way that fully complies with the spirit and letter of the law,” Cineplex said in a statement.
The Competition Tribunal, a federal agency charged with deciding cases on competition grounds, on Monday sided with the federal Competition Bureau in claiming Cineplex engaged in deceptive pricing of movie tickets by not presenting up front a mandatory $1.50 fee for cinemagoers booking seats online.
“The Tribunal determined that the representations on Cineplex’s website and mobile application constituted drip pricing and that consumers were deceived by contradictory and incomplete information on Cineplex’s tickets page,” the Competition Bureau said in a statement following the Competition Tribunal decision.
Cineplex runs 169 movie theaters and location-based entertainment venues across Canada. The financial penalty and legal costs imposed on Cineplex aims to be equivalent with what Cineplex is said to have collected from Canadian consumers when the online booking fee was gathered between June 2022 and December 2023.
“Consumers are entitled to clear information, and should never be surprised by hidden or additional fees. When businesses engage in false or misleading practices, it harms competition and businesses who comply with the law,” the Competition Bureau added.
But Cineplex disagreed with the Competition Tribunal ruling in arguing the online booking fee remained optional. “It provides moviegoers with the confidence of knowing they have a ticket and an exact seat location before they arrive at a theatre. The fee is presented on our website and app in a clear and prominent manner,” the exhibition giant added in its statement.