Cineplex Battles $38.9M Drip-Pricing Fine in Federal Appeal

 

A Cineplex theatre at Yonge and Eglinton in Toronto is pictured in December 2019. Cineplex has filed an appeal of a record $38.9-million fine for deceptive marketing practices imposed against it by the Competition Tribunal.

Cineplex Inc., Canada’s largest movie theatre chain, is heading to the Federal Court of Appeal to challenge a record $38.9-million penalty imposed for deceptive pricing practices.

The fine stems from a Competition Tribunal ruling in 2024, which found Cineplex guilty of “drip pricing” — the practice of advertising a lower price before adding mandatory fees later in the checkout process. At issue was a $1.50 online booking fee charged to many customers purchasing tickets through Cineplex’s website or app.

The Competition Bureau argued that millions of Canadians were misled by the hidden fee, while Cineplex maintains it was transparent about the charge, noting that customers could avoid it by buying tickets in person.

Experts say the case could set a precedent across industries, from airlines to food delivery apps, where hidden fees are common. “It’s the bureau sending a signal to the broader marketplace that they will not tolerate companies advertising a price that isn’t actually attainable,” said Vass Bednar, co-author of The Big Fix: How Companies Capture Markets and Harm Canadians ^[1].

Regardless of the outcome, the appeal underscores growing scrutiny of hidden fees in Canada’s digital economy, with regulators determined to push for greater transparency in consumer pricing.