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Canada's Competition Tribunal imposes $39 mln penalty on Cineplex
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Canada's Competition Tribunal imposes $39 mln penalty on Cineplex
Sep 28, 2024 7:33 AM

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.

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