Competition Commissioner Shifts Focus on Allegations of Cineplex’s Deceptive Marketing Tactics.

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The Competition Commissioner has issued another amended complaint against Cineplex, further detailing its alleged use of online booking fees as a form of price discrimination. This development comes in response to public criticism and legal challenges over the company’s pricing practices.

Background on Cineplex’s Fee Structure

Cineplex implemented an online booking fee starting on June 15, 2022. The move was intended to streamline advance ticket purchases for customers who prefer online transactions rather than visiting cinemas in person or using their mobile apps. The fee, which can be charged up to four times per transaction, is a fixed amount that consumers are not explicitly informed about before placing an order.

Allegations of Price Discrimination

The Competition Commissioner’s latest filing expands on previous complaints regarding the transparency of Cineplex’s pricing policies. According to the amended complaint:

• Price Representation: Cineplex’s website and app provide misleading information by omitting the online booking fee, which is now mandatory for certain transactions. This creates uncertainty for consumers who are unaware that their total cost will increase.

• Charging Practice: The fee is not always obligatory. For instance:

  • Customers purchasing tickets in theaters or using Cineplex’s CineClub subscription do not incur the online booking fee.
  • Those with a Scene Plus card during the purchase process must pay a reduced fee of $1.

This pricing strategy, the complaint argues, effectively forces consumers to assume the higher cost before making their decision. As a result, the fees are presented as a convenience rather than a legitimate price increase.

Impact on Cineplex’s Business Model

Cineplex has faced significant backlash from its customers and regulators due to this pricing anomaly. The chain has also been accused of manipulating consumer behavior by creating the perception that online booking is cheaper or more convenient, despite the hidden fees.

Legal and Regulatory Implications

The Competition Commissioner’s office is pursuing this case under Section 2(4) of the Competition Act, which prohibits practices that engage in or cause price discrimination. If successful, the agency could impose measures to level the playing field for competitors and ensure fair pricing in the industry.

Cineplex’s Response

Despite these allegations, there has been no official response from Cineplex regarding the amended complaint. The company is currently focused on navigating the challenges posed by the COVID-19 pandemic and rebuilding its operations post-pandemic.

Broader Industry Context

This case is part of a broader debate in the entertainment industry about the fairness of pricing practices, particularly in relation to digital platforms. As online transactions become more prevalent, ensuring that consumers are fully informed about all associated costs has become critical for maintaining trust and market competition.

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