MIL OSI Translation. Canadian French to English –
Source: Government of Canada – in French
Today, the Competition Tribunal ruled in favour of the Competition Bureau and found that Cineplex made partial price representations by adding a mandatory $1.50 online booking fee.
Cineplex ordered to pay record fine of nearly $39 million
September 23, 2024, GATINEAU, Quebec, Competition Bureau
Today, the Competition Tribunal ruled in favour of the Competition Bureau and found that Cineplex made partial price representations by adding a mandatory $1.50 online booking fee.
The Tribunal determined that the representations on Cineplex’s website and mobile application constituted partial price representations and that consumers were misled by the contradictory and incomplete information on Cineplex’s ticket page.
As part of its decision, the Tribunal ordered Cineplex to pay a monetary penalty of more than $38.9 million as well as legal costs. The penalty is equal to the amount Cineplex collected from consumers since the introduction of the online booking fee in June 2022 until December 2023.
Consumers deserve clear information and should never be surprised by hidden or additional fees. When businesses engage in false or misleading practices, they harm competition and law-abiding businesses.
The Court ordered Cineplex not to engage in the relevant conduct or similar conduct for a period of 10 years.
Following an investigation, the Office has filed an application to the Competition Tribunal on May 18, 2023 to, among other things, have Cineplex cease its misleading advertising.
Amendments to the Competition Act that came into force on June 24, 2022 explicitly recognize partial pricing as a harmful business practice.
Partial pricing involves offering low prices to attract consumers, but then adding mandatory fees so that the advertised prices are unobtainable. This practice is against the Act unless the additional fixed fees are imposed on buyers by the government, such as sales tax.
The Bureau has already taken action against partial pricing over the years under the deceptive marketing provisions of the Competition Act, particularly in the car rental, of the satellite radio subscriptions, and of the ticket sales online for sporting events and shows.
The Office recently published a consumer alert to raise public awareness about cases of partial price indication and to promote their reporting.
We strongly encourage anyone who suspects that a business or individual is making false or misleading pricing claims to report it through our online complaint form.
Media Inquiries: Media Relations Email:media-cb-bc@cb-bc.gc.ca
The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition leads to lower prices, innovation and economic growth.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.