Sept 23 (Reuters) - Cineplex ( CPXGF ) has been ordered
to pay nearly $39 million after the Competition Tribunal found
that the cinema operator engaged in deceptive marketing,
Canada's competition regulator said on Monday.
The Competition Tribunal found that Cineplex ( CPXGF ) engaged in
drip pricing by adding a mandatory $1.50 online booking fee, the
Competition Bureau said in a statement.
The penalty is equal to what Cineplex ( CPXGF ) received from
consumers when the online booking fee was introduced in June
2022 until December 2023, it added.
Cineplex ( CPXGF ) said it will appeal the competition tribunal's
decision.
"This ruling has no impact on the continuation of
offering this value-added service to consumers," the Canadian
cinema chain said in a separate statement.
The antitrust regulator sued Cineplex ( CPXGF ) in 2023 for drip
pricing, where the tickets are advertised at a lower price than
what many consumers had to pay at checkout.
The regulator had alleged that Cineplex ( CPXGF ) was breaking the law
by adding an additional fee that raises the price of its tickets
purchased online.
"The Tribunal's decision sends a strong message that
businesses should not engage in drip pricing and need to display
their full prices upfront", the Competition Bureau said in the
statement.