Get ready for more cases tackling misleading fees after Cineplex ruling, expert says

By Tara Deschamps, The Canadian Press on September 24, 2024.

At least one competition expert says a record $38.9 million fine Cineplex Inc. has been ordered to pay is bound to encourage even more action against companies engaged in a deceptive practice known as drip pricing. A moviegoer steps into an auditorium at a Cineplex Movie Theatre in Toronto on Friday, July 16, 2021.THE CANADIAN PRESS/Chris Young

TORONTO – At least one competition expert says the record $38.9 million fine against Cineplex Inc. is bound to encourage more action against companies engaged in a deceptive practice known as drip pricing.

The theatre operator was found late Monday to have engaged in the practice, where customers are drawn into a purchase without full disclosure of the final cost.

The Competition Bureau’s case against Cineplex related to a $1.50 charge many customers were forced to pay when purchasing movie tickets online.

Vass Bednar says these types of fees are common across many sectors, providing plenty of fodder for potential future cases that could delve into the pricing of airline, bus and concert tickets.

The executive director of McMaster University’s master of public policy program says the Competition Bureau’s success with the Cineplex case shows there’s no issue too small for the watchdog to go after.

Cineplex maintains it has always been upfront about its $1.50 online booking fees and has said it will appeal the fine levied by the Competition Tribunal.

This report by The Canadian Press was first published Sept. 24, 2024.

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