Competition Bureau Statement on Cineplex Drip Pricing Ruling
Summary
The Competition Bureau Canada issued a statement following the Federal Court of Appeal's decision to uphold a ruling against Cineplex for deceptive marketing practices related to drip pricing. The court dismissed Cineplex's appeal, reinforcing the Bureau's stance against hidden fees and affirming transparency for consumers.
What changed
The Competition Bureau Canada has announced that the Federal Court of Appeal has upheld a September 2024 ruling by the Competition Tribunal against Cineplex concerning deceptive marketing practices, specifically "drip pricing." This decision dismisses Cineplex's appeal and reinforces the Bureau's position that businesses must not advertise prices that are unattainable due to undisclosed mandatory fees. The ruling confirms that Cineplex engaged in drip pricing, which is contrary to the Competition Act unless the fees are government-imposed taxes.
This outcome signifies a significant win for consumer transparency and the Competition Bureau's ongoing efforts to combat deceptive marketing. Regulated entities, particularly those in the retail and entertainment sectors, should review their pricing and fee disclosure practices to ensure compliance with the Competition Act. Failure to comply with deceptive marketing provisions can result in significant financial penalties, as highlighted by the Bureau. Consumers who suspect misleading price claims are encouraged to report them to the Bureau.
What to do next
- Review pricing and fee disclosure practices for compliance with the Competition Act.
- Ensure all mandatory fees are clearly disclosed at the point of initial price advertising.
- Report any suspected deceptive marketing practices to the Competition Bureau.
Penalties
Businesses that fail to comply with the law risk significant financial penalties.
Source document (simplified)
Statement from the Acting Commissioner of Competition on appeal court's ruling in Cineplex deceptive marketing case
From: Competition Bureau Canada
News release
Jeanne Pratt, Acting Commissioner of Competition, issued a statement following the Federal Court of Appeal’s decision to uphold a September 2024 ruling by the Competition Tribunal in a deceptive marketing case involving Cineplex.
The Federal Court of Appeal ruled in favour of the Competition Bureau
January 23, 2026 – GATINEAU, QC – Competition Bureau
Jeanne Pratt, Acting Commissioner of Competition, issued a statement following the Federal Court of Appeal’s decision to uphold a September 2024 ruling by the Competition Tribunal in a deceptive marketing case involving Cineplex.
“We welcome the Federal Court of Appeal’s decision — another resounding win for Canadians. This outcome reinforces the Bureau’s clear stance that businesses should not advertise prices that are not attainable.
Canadians deserve transparency when making purchases. Businesses that fail to comply with the law risk significant financial penalties.
Our continued work on this file, along with other drip pricing cases underlines our commitment to tackling deceptive marketing practices.”
Quick facts
- On May 18, 2023, the Bureau filed an application with the Competition Tribunal, seeking, among other things, for Cineplex to stop its deceptive advertising.
- On September 23, 2024, the Competition Tribunal ruled in favour of the Competition Bureau and found that Cineplex engaged in drip pricing.
- On October 23, 2024, Cineplex filed a notice of appeal, with the Federal Court of Appeal to overturn the Competition Tribunal’s decision.
- On October 8, 2025, Cineplex’s application was heard by the Federal Court of Appeal.
- On January 21, 2026, the Federal Court of Appeal dismissed Cineplex’s appeal, with costs.
- Drip pricing involves offering low prices to attract consumers but then adding mandatory fees so that the prices are unattainable. This practice is against the Act, unless the additional fixed charges or fees are imposed by the government on purchasers, such as sales tax.
- The Bureau has taken action against drip pricing for many years under the Deceptive Marketing Practices provisions of the Competition Act.
- In May 2024, the Bureau issued a consumer alert to raise awareness and reporting of drip pricing.
- We strongly encourage anyone who suspects that a company or individual is making false or misleading price claims to report it by using the Bureau’s online complaint form.
Related products
- Federal Court of Appeal’s decision
- Competition Tribunal Cineplex Information Note
- Competition Bureau wins deceptive marketing case against Cineplex
- Cineplex - Notice of Application
- Recent changes to the Competition Act explicitly recognize drip pricing
Associated links
- Drip pricing and the Competition Act
- Deceptive marketing practices – Cases and outcomes
- Consumer alert: The ambush of hidden fees
Contacts
Media inquiries: Media Relations
Email: media-cb-bc@cb-bc.gc.ca
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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.
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Page details
2026-01-24
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