TORONTO Cineplex Inc. has expressed its disagreement with a recent court ruling that upheld a substantial $39 million penalty connected to deceptive marketing practices. This ruling, issued by the Federal Court of Appeal, affirmed a previous decision made by the Competition Tribunal in 2024, which addressed Cineplex’s handling of online booking fees.
The contentious online booking fee, set at $1.50, was introduced by Cineplex in June 2022. Customers not enrolled in Cineplex's CineClub subscription or Scene Plus loyalty programs were subjected to this fee, while these enrolled customers had the fee waived or reduced to $1. This pricing strategy prompted scrutiny from the Competition Bureau, which initiated the case in 2023, arguing that this practice exemplified “drip pricing.” This term refers to a marketing tactic where an initially low price entices customers, only for additional fees to be revealed later in the purchasing process, leading to a final total that exceeds the anticipated cost.
Cineplex maintained that its pricing structure was transparent, stating that it adequately communicated the online booking fee to customers. The Competition Bureau contended that the advertised ticket prices were "unattainable," arguing that when customers arrived at the theater, they were not sufficiently informed that purchasing a ticket would result in a fee exemption or reduction. The $38.9 million fine imposed on Cineplex represents the total amount collected from consumers through the online booking fee during the period from June 2022 to December 2023.
Following the court's decision, Cineplex reiterated its intention to appeal to the Supreme Court of Canada, expressing their belief that the online booking fee was clearly presented and complied fully with legal standards. In a company press release, they stated, “We respectfully disagree with the Federal Court of Appeal’s decision. We continue to believe that our online booking fee has always been presented in a clear and prominent manner that fully complies with the spirit and letter of the law.”
The Competition Bureau expressed approval of the Federal Court of Appeal's ruling, reinforcing its commitment to maintaining transparency in consumer transactions. Acting Competition Commissioner Jeanne Pratt remarked that the ruling serves as a significant victory for consumers and emphasizes that companies must not advertise unattainable prices.
The legal situation has also impacted Cineplex's financial performance. In its third-quarter earnings report released in November 2025, Cineplex reported a profit of two cents per diluted share, in contrast to a loss of 39 cents per diluted share in the same quarter the previous year. This notable change was largely attributed to the reserves the company set aside in anticipation of the potential requirement to pay the imposed fine by the Competition Tribunal.
Drip pricing practices extend beyond just ticket sales; the Competition Bureau has identified similar issues in various industries. The Bureau has pursued claims against several businesses, including delivery service DoorDash, broadcaster SiriusXM Canada, and amusement park Canada’s Wonderland, among others. Notably, SiriusXM reached an agreement in 2024 to pay a penalty of $3.3 million due to similar pricing concerns.
This ongoing legal battle reflects larger issues regarding transparency and fairness in pricing practices across multiple sectors, and the implications of such cases resonate with consumers striving for clarity in their purchasing decisions.
