Competition Bureau Statement on Cineplex Drip Pricing Ruling

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.