The Globe and Mail reports in its Friday, May 19, edition that the federal Competition Bureau is suing Cineplex over allegedly misleading consumers by advertising on-line and mobile ticket prices without including mandatory booking surcharges that appear later in the purchase process.
The Globe's Josh O'Kane writes that Cineplex introduced the $1.50 fee in June, 2022. The Competition Bureau said Thursday that the fee had generated "significant revenues" for Cineplex, alleging it broke the law with misleading pricing. Ottawa amended the Competition Act last year to declare this tactic, sometimes called drip pricing or junk fees, as a "harmful" business practice.
The antitrust watchdog said it filed an application with the Competition Tribunal to force Cineplex to stop "deceptive" advertising, pay a fine, and to issue some kind of restitution for customers who had paid the on-line booking fee.
McMaster University's Vass Bednar says, "This is a concrete enforcement action on what seems like a very fake fee."
Ottawa said in its federal budget this spring that it would work with regulatory agencies, including the competition commissioner, to potentially find other ways to fight these kinds of junk fees.
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