By Taimur Sikander Mirza

The Competition Bureau is suing Cineplex for “allegedly advertising misleading ticket prices” online, a claim the national theatre chain says has “no merit.”

In a statement, the Bureau alleged that Cineplex “is breaking the law by adding an additional fee that raises the price of its tickets purchased online.”

The Bureau said its investigation found that “consumers cannot buy tickets on Cineplex’s website or mobile app at advertised prices because it adds a mandatory $1.50 online booking fee to the price of a ticket.”

It further alleged the online booking fee is an “example of misleading drip pricing,” also known as a junk fee, a practice whereby consumers are made to pay an additional mandatory price to buy a product or service.

Cineplex called the legal action “meritless” and said it was “disappointed” by the Bureau’s statements before the lawsuit had been reviewed by the Competition Tribunal.

“Our online booking fee is not misleading and fully complies with the spirit and letter of the law. There is no merit to the Bureau’s allegation,” the theatre chain said in a statement issued in response to the news release by the Competition Bureau on Thursday.

According to amendments to the Competition Act that came into effect last year, drip pricing is recognized as “a harmful business practice” and false and misleading under the law, “unless the additional fixed charges or fees are imposed by the government, such as sales tax.”

In the notice of application filed with the Tribunal, the Bureau said the online fee had generated a revenue of nearly $17 million for Cineplex in the nine months since the company introduced it in June 2022.

“Consumers expect to pay the advertised price. We’re taking action against Cineplex because misleading tactics like drip pricing only serve to deceive and harm consumers. For years, we have urged businesses, including ticket vendors, to display the full price of their products upfront. I remind all businesses to review their pricing claims to make sure they do not mislead consumers,” said commissioner of competition Matthew Boswell.

In the application filed with the Tribunal, the Bureau has asked Cineplex to “stop the deceptive advertising, pay a penalty and issue restitution to affected consumers who purchased tickets through Cineplex’s website or app.”

Cineplex said in its statement that it’s been working with the Bureau since late 2022 “in an open and transparent manner.”

“Our online booking fee is entirely optional and provides the convenience of advance seat selection. All of this information is clearly stated on our website. Unlike other ticketed venues where such fees may exist, Cineplex’s guests can buy their tickets at their local theatre without paying this modest fee,” said the Canadian exhibitor.

“We will seek an early determination and expect this suit to be dismissed quickly as it has no merit.”

A version of this story originally appeared on Playback.