Cineplex Pays $39M In Landmark Drip Pricing Case

The Competition Tribunal has ordered Cineplex Inc to pay nearly $39 million for engaging in drip pricing, marking a significant development in Canadian advertising law. This is the first order issued following the 2022 introduction of higher administrative monetary penalties, and also the first decision interpreting the new civil drip pricing prohibitions.

"Drip pricing" is a misleading advertising practice where an initial low price is advertised, and subsequently additional mandatory fees are added to inflate the final cost. In this case, the Tribunal has found that Cineplex's $1.50 online booking fee was deemed a hidden cost that misled consumers about the true price of tickets. Commissioner of Competition Matthew Boswell stated, "The Tribunal's decision is a resounding win for Canadians. It sends a strong message that businesses should display their full prices upfront." This case highlights the Bureau's enforcement focus on transparency in pricing to