Jeanne Pratt, acting competition commissioner, has described the Federal Court of Appeal’s ruling – affirming the Competition Tribunal’s $38.9-million penalty against Cineplex Inc. in a deceptive marketing case involving its online booking fees – as “another resounding win for Canadians.”
According to the Competition Bureau’s news release, the Competition Tribunal determined that Cineplex engaged in drip pricing in its September 2024 decision.
Through drip pricing, a business offers low prices to draw in consumers, but then includes mandatory fees that make the prices unattainable. Drip pricing breaches the Competition Act, 1985, unless the government has imposed sales tax or other fixed fees or charges on purchasers.
In a statement welcoming the appeal court’s ruling, Pratt shared that the result reaffirms the Competition Bureau’s clear position that businesses should not advertise unattainable prices.
“Canadians deserve transparency when making purchases,” Pratt said.
Case context
On May 18, 2023, before the Competition Tribunal, the Competition Bureau applied to stop any deceptive advertising by Cineplex, among other relief sought.
On Sept. 23, 2024, the Competition Tribunal ruled in the Competition Bureau’s favour. On Oct. 23, 2024, before the Federal Court of Appeal, Cineplex filed a notice of appeal aiming to overturn the Competition Tribunal’s decision.
On Oct. 8, 2025, the appeal court heard Cineplex’s application. Last Jan. 21, the appeal court dismissed Cineplex’s appeal and awarded costs.
The Canadian Press reported that Cineplex expressed its disagreement with the drip pricing decision and its intent to appeal it before the Supreme Court of Canada.
“We continue to believe that our online booking fee has always been presented in a clear and prominent manner that fully complies with the spirit and letter of the law,” the Toronto-based company said in a press release.
Bureau’s efforts
According to the Competition Bureau, for many years, it has taken steps to address drip pricing under the Competition Act’s provisions on deceptive marketing practices.
“Our continued work on this file, along with other drip pricing cases underlines our commitment to tackling deceptive marketing practices,” Pratt said in the news release.
In May 2024, the Competition Bureau released a consumer alert to spread awareness and reporting regarding drip pricing.
The Competition Bureau urged those suspecting false or misleading price claims on the part of a company or an individual to submit a report via the bureau’s online complaint form.
In the news release, Pratt emphasized that businesses breaching the legislation may face substantial financial penalties.