Canada’s commissioner of competition has doubled down on its claim that Cineplex is conducting “deceptive” business tactics with its online ticket sales.
In a filing last week, Matthew Boswell alleged once again that Cineplex’s $1.50 ticket purchasing fee is misleading. Boswell asserts that this additional cost, which was quietly introduced in June 2022 to website and mobile app ticket purchases, prevents customers from buying at advertised prices. The Competition Bureau sued the theatre chain in May 2023.
Now, Boswell is responding to Cineplex’s appeal to dismiss the lawsuit. In a June 30th filing, Cineplex argues that its fee isn’t misleading because it’s displayed on the first page of the ticket checkout process. While this is true, it is buried deeper on the page separate from the actual displayed subtotal.
Boswell counters that “consumers are not presented with the price of a movie ticket on the very first page of the website and app.” Indeed, there is no actual section on Cineplex’s website that simply breaks down ticket prices depending on the type of admission, such as General, IMAX, or the discounted Tuesday rate. Instead, you have to sign in and begin the checkout process before you’re actually told how much a ticket will cost.
Cineplex has admitted to this practice but defended it by arguing that there “are many options that impact the overall cost of attending the theatre to see a movie,” which requires an “interactive” approach to the selections by the customer. Nonetheless, Boswell argues that this only further obfuscates the cost of the online fee.
“Cineplex also glosses over the fact that when the price of a movie ticket is disclosed on the ‘tickets’ page, Cineplex does not actually adjust each price representation to show the full price,” said Boswell. “Rather it adds up the cost of each movie ticket and the cost of the online booking fee (which can be charged up to four times per transaction) all together, leaving it to consumers to figure out that the per-ticket cost has increased.”
Elsewhere, Cineplex has argued that it provides consumers options to avoid the fee, including buying in-person at cinemas or signing up for the $9.99/month CineClub membership. Those who take part in the free Scene loyalty program also have the fee reduced to $1.
However, Boswell also took issue with this defence, nothing that it “does not change the fact that Cineplex has made a price representation to the public that is unattainable on the website or in the app due to the fixed obligatory online booking fee.” He added that Cineplex’s in-person box offices aren’t always staffed and signage instead directs customers to buy online anyway.
It remains to be seen what will come out of the Competition Bureau’s lawsuit.
It’s also important to note that the ongoing Hollywood strike has led to the production and promotion of new movies being halted. Writers and actors are calling for increased pay and greater protection from artificial intelligence replacements as Hollywood executives rake in hundreds of millions of dollars while giving out minuscule residuals for titles on streaming services.
Therefore, it’s unclear whether films will be delayed, especially since it’s too early to say how long the strike will last. So far, Canadian theatres have already floated the idea of playing older films or special events if needed.
Via: Toronto Star
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