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The encyclopedia · Advertising & PR · Marketing decision · 2024

Cineplex's $1.50 booking fee cost it $38.9 million

Sept 2024: the Competition Tribunal fined Cineplex a record $38.9M for drip pricing — ticket prices advertised without the mandatory $1.50 online booking fee.

Cineplex Inc. · 2024-09

What happened

Cineplex advertised movie ticket prices on its website and app, then added a mandatory $1.50 online booking fee at checkout — every online buyer paid it, and the advertised price was unreachable without it. The Bureau took the case to the Competition Tribunal in May 2023 under the Competition Act's 2022 drip-pricing provisions, arguing the advertised prices were misleading because the fee was not disclosed upfront.

On 23 September 2024 the Tribunal ruled for the Bureau: Cineplex had engaged in drip pricing, and was ordered to pay a record penalty of $38.9 million — the largest ever imposed under Canada's misleading-advertising provisions — plus legal costs. Cineplex appealed; in January 2026 the Federal Court of Appeal upheld the decision and the penalty.

The amount is the message: $1.50 per ticket, multiplied across millions of sales and years of practice, and then multiplied again by the deterrence logic of the 2022 law. A fee that every buyer must pay is part of the price, and advertising the price without it is advertising a price that does not exist.

Why it happened

  • The advertised ticket price was unreachable — every online buyer paid the mandatory $1.50 fee at checkout.
  • The fee was disclosed at checkout, not in the advertised price — the drip, not the fee, was the deception.
  • The 2022 drip-pricing amendments let the Tribunal price deterrence, and it did: a record penalty.
What it costrecord $38.9M + legal costscatastrophic

The lesson

A mandatory fee is part of the price, and advertising the price without it is advertising a fiction: drip pricing now carries record penalties, priced for deterrence rather than proportionality.

Aftermath

The Federal Court of Appeal upheld the penalty in January 2026, ending Cineplex's challenge. The decision is Canada's controlling precedent for drip pricing under the 2022 Competition Act amendments.

Sources

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