Canada’s largest theatre chain, Cineplex Corporation, is contesting a record $38.9 million penalty imposed by federal anti-trust authorities, claiming it breached the Competition Act by charging customers a $1.50 online booking fee.“We are shocked and disagree with the decision and will appeal to the Federal Court of Appeal, including the $39 million administrative monetary penalty,” Cineplex said in a statement. “This ruling has no impact on the continuation of offering this value-added service to consumers.”Blacklock's Reporter says the Competition Bureau alleged that the mandatory fee amounted to “false or misleading representations about the price of movie tickets,” but Cineplex argued that the fee was clearly disclosed, allowed for reserved seating, and could be avoided by purchasing tickets in person.“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 stated. According to the Bureau, the fine reflects the booking fee revenue collected over an 18-month period ending December 31.Cineplex, which operates 169 theatres nationwide, defended the fee as a transparent, optional service, saying, “The Online Booking Fee provides moviegoers with the confidence of knowing they have a ticket and exact seat location before arriving at the theatre.”The Competition Tribunal has not yet fully disclosed details of the case. “The full reasons for the Tribunal’s order are currently confidential,” noted an Information Note. The Tribunal is working with Cineplex and the Commissioner to redact sensitive information before releasing a public version.The Bureau classified the fee as an example of "drip pricing," a practice prohibited under the Competition Act, in which consumers are drawn in by low prices only to face mandatory fees that make the advertised price unattainable.Similar investigations in the past have led to multi-million dollar settlements with companies like Enterprise, Avis, and Budget for deceptive add-on fees disguised as government charges, a practice the Bureau has long sought to eliminate.
