Cineplex Inc. is facing scrutiny over its online booking fees, with Canada's competition czar accusing the company of engaging in harmful 'drip pricing'. The competition commissioner's lawyer argued that customers have no choice but to pay the fee in order to complete their purchase. Cineplex charges an additional $1.50 fee on top of the ticket price for every online booking, and has reportedly generated nearly $40 million from these fees since June 2022. The Competition Bureau contends that additional fixed charges or fees are considered false or misleading under the law, unless they are imposed by the government. Cineplex, on the other hand, argues that the fee is optional and not misleading, as the information is clearly stated on its website. The case is currently being heard at the Competition Tribunal [d205bf6f].
The issue of hidden fees and lack of pricing transparency is not limited to the hotel and airline industries. Cineplex's online booking fees highlight the broader concern of 'drip pricing', where additional charges are gradually added throughout the purchasing process, leading to higher costs for consumers. This practice has drawn criticism from consumer advocates who argue that it is deceptive and unfair. The Competition Bureau's investigation into Cineplex's online booking fees is part of its ongoing efforts to address hidden fees and promote pricing transparency in various sectors [d205bf6f].