The Competition Bureau of Canada has taken legal action against Cineplex for advertising movie tickets at a lower price than what people have to pay. .“Consumers expect to pay the advertised price,” said Competition Bureau Commissioner Matthew Boswell in a Thursday press release. .“We’re taking action against Cineplex because misleading tactics like drip pricing only serve to deceive and harm consumers.”.The release said Cineplex allegedly broke the law by adding an additional fee which raises the price of tickets purchased online. .Cineplex said in June it had implemented a new $1.50 booking fee which applies to each ticket bought through its mobile app and website. .READ MORE: Cineplex adds booking fee for online ticket purchases.This move came after Cineplex said it had “to further invest and evolve our digital infrastructure.”.It said tickets purchased in person at the box office, ticket booths, and concession stands will not have the fee added to them. Scene Plus members pay a reduced $1 fee. .A Competition Bureau investigation found many people cannot buy tickets on Cineplex’s website or app at advertised prices because it adds a mandatory $1.50 booking fee to the price of a ticket. .The release alleged Cineplex’s online booking fee is an example of misleading drip pricing. .Recent amendments to the Competition Act recognize drip pricing of mandatory charges or fees as a harmful business practice. Drip pricing is considered to be false or misleading under the law, unless the additional fixed charges or fees are imposed by a government. .Since Cineplex introduced the booking fee, it said the Competition Bureau believes it has generated significant revenues. .It filed an application with the Competition Tribunal seeking the movie theatre chain stop deceptive advertising, pay a penalty, and issue restitution to affected consumers who purchased tickets through its website or app. .For years, Boswell has urged businesses to display the full price of their products upfront. .“I remind all businesses to review their pricing claims to make sure they do not mislead consumers,” he said. .Cineplex responded by saying it was "disappointed by the statements made by the Competition Bureau today before the matter has been reviewed and decided upon by the Tribunal." ."Our online booking fee is not misleading and fully complies with the spirit and letter of the law," it said.."There is no merit to the Bureau's allegation." .It said it has been working with the Competition Bureau in an open, transparent manner since 2022. The online booking fee is optional and provides the convenience of advance seat selection..All of this information is stated on the website. Unlike other ticketed venues where such fees might exist, its guests can buy their tickets at their local movie theatre without paying the fee.."We will seek an early determination and expect this suit to be dismissed quickly as it has no merit," it said.
The Competition Bureau of Canada has taken legal action against Cineplex for advertising movie tickets at a lower price than what people have to pay. .“Consumers expect to pay the advertised price,” said Competition Bureau Commissioner Matthew Boswell in a Thursday press release. .“We’re taking action against Cineplex because misleading tactics like drip pricing only serve to deceive and harm consumers.”.The release said Cineplex allegedly broke the law by adding an additional fee which raises the price of tickets purchased online. .Cineplex said in June it had implemented a new $1.50 booking fee which applies to each ticket bought through its mobile app and website. .READ MORE: Cineplex adds booking fee for online ticket purchases.This move came after Cineplex said it had “to further invest and evolve our digital infrastructure.”.It said tickets purchased in person at the box office, ticket booths, and concession stands will not have the fee added to them. Scene Plus members pay a reduced $1 fee. .A Competition Bureau investigation found many people cannot buy tickets on Cineplex’s website or app at advertised prices because it adds a mandatory $1.50 booking fee to the price of a ticket. .The release alleged Cineplex’s online booking fee is an example of misleading drip pricing. .Recent amendments to the Competition Act recognize drip pricing of mandatory charges or fees as a harmful business practice. Drip pricing is considered to be false or misleading under the law, unless the additional fixed charges or fees are imposed by a government. .Since Cineplex introduced the booking fee, it said the Competition Bureau believes it has generated significant revenues. .It filed an application with the Competition Tribunal seeking the movie theatre chain stop deceptive advertising, pay a penalty, and issue restitution to affected consumers who purchased tickets through its website or app. .For years, Boswell has urged businesses to display the full price of their products upfront. .“I remind all businesses to review their pricing claims to make sure they do not mislead consumers,” he said. .Cineplex responded by saying it was "disappointed by the statements made by the Competition Bureau today before the matter has been reviewed and decided upon by the Tribunal." ."Our online booking fee is not misleading and fully complies with the spirit and letter of the law," it said.."There is no merit to the Bureau's allegation." .It said it has been working with the Competition Bureau in an open, transparent manner since 2022. The online booking fee is optional and provides the convenience of advance seat selection..All of this information is stated on the website. Unlike other ticketed venues where such fees might exist, its guests can buy their tickets at their local movie theatre without paying the fee.."We will seek an early determination and expect this suit to be dismissed quickly as it has no merit," it said.
