Cineplex slapped with record $38.9M fine over online booking fee

globalnews.ca:

Cineplex Inc. says it will appeal a record $38.9 million fine for deceptive marketing practices imposed by the Competition Tribunal.

The fine was embedded in a decision the tribunal issued late Monday that saw it side with the Competition Bureau in a case stretching back to May 2023. That was when the watchdog accused Cineplex of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online.

“The consumer is deceived or led astray by the contradictory and incomplete information on Cineplex’s tickets page, which obfuscates the existence and quantum of the online booking fee,” the tribunal said in a two-page information outlining its decision.

The online booking fee it referred to is a $1.50 charge Cineplex began including in June 2022 to many customers not enrolled in its CineClub subscription and Scene Plus loyalty programs, which saw the fee waived and dropped to $1, respectively.

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, however, vehemently denied the accusations, saying moviegoers are promptly told about fees they may face and can avoid them all together by purchasing seats in-person at a theatre.

Cineplex maintained that view on Monday, after the release of the tribunal’s ruling.

The company said in a statement it was “shocked” by the decision and pointed out that online booking fees are presented on its website and app “in a clear and prominent manner.”

“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,”