The exterior of Cineplex Junxion Erin Mills is shown in Mississauga, Ont., on Monday, April 24, 2023. The competition commissioner says moviegoers don’t have a way to avoid Cineplex’s online booking fees, which constitute “drip pricing†considered a harmful practice under the law. THE CANADIAN PRESS/Nathan Denette
OTTAWA – Canada’s competition czar says Cineplex Inc.’s online booking fees are “drip pricing,” a harmful practice under the law, and moviegoers don’t have any way to avoid them.
A lawyer representing the competition commissioner made the argument today as the Competition Tribunal hears arguments in the case against the movie giant.
Cineplex argues customers can buy tickets in person at the movie theatre, but the commissioner says that’s not a real alternative because they are two separate services.
Drip pricing, also known as a junk fee, is a deceptive practice in which customers are drawn into a purchase without full disclosure of the final cost.
Cineplex charges an extra $1.50 fee to the price of every ticket purchased online, though some customers belonging to loyalty plans see that fee lowered or waived.
The company has made almost $40 million from the online booking fees since it implemented them in June 2022.
This report by The Canadian Press was first published Feb. 28, 2024.
