A Cineplex theatre in Toronto is pictured in 2019. Cineplex Inc. has made almost $40 million from online booking fees, which are central to a competition bureau lawsuit against the Canadian cinema chain. (Aaron Vincent Elkaim/The Canadian Press)
Cineplex Inc. has garnered nearly $40 million in revenue from online booking fees, a focal point of a legal battle with the Canadian cinema giant, according to documents filed in the Competition Tribunal.
The agreed statement of facts presented in the case reveals that Canada's leading theater operator earned over $11.6 million within six months following the implementation of the fees in June 2022. In 2023, an additional $27.3 million was generated from these charges.
Cineplex imposes an extra $1.50 fee on each ticket purchased online, though Scene+ members receive a discount and CineClub members are exempt from the fee.
Competition commissioner Matthew Boswell asserts that the online fees are misleading since movie patrons are not immediately informed about the full ticket price upon landing on the initial page of Cineplex.com to buy tickets.
Cineplex contests Boswell's allegations, arguing they lack substance and should be dismissed, with costs awarded to Cineplex. The company maintains that moviegoers are apprised of potential fees right from the outset of the purchasing process.
The bureau initiated legal action against Cineplex in May 2023, alleging that the company violates the law by levying a fee that inflates the cost of tickets bought online. The bureau contends that consumers cannot acquire tickets online at the advertised prices due to the compulsory $1.50 fee.
This practice, the bureau claims, is deceptive and constitutes drip pricing, commonly known as a hidden fee. It underscores that recent revisions to the Competition Act explicitly identify drip pricing as an unfavorable business practice.
