Cineplex slapped with record $38.9M fine over online booking fee

[canada-man]

Cineplex Inc. says it will appeal a record $38.9 million fine for deceptive marketing practices imposed by the Competition Tribunal.

The fine was embedded in a decision the tribunal issued late Monday that saw it side with the Competition Bureau in a case stretching back to May 2023. That was when the watchdog accused Cineplex of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online.

“The consumer is deceived or led astray by the contradictory and incomplete information on Cineplex’s tickets page, which obfuscates the existence and quantum of the online booking fee,” the tribunal said in a two-page information outlining its decision.

The online booking fee it referred to is a $1.50 charge Cineplex began including in June 2022 to many customers not enrolled in its CineClub subscription and Scene Plus loyalty programs, which saw the fee waived and dropped to $1, respectively.

Cineplex slapped with record $38.9M fine over online booking fee | Globalnews.ca

 

[xix]

Ticketmaster next?

 

[hamermill]

A $38 M fine is pocket change and a joke.

Is Cineplex profitable?
More importantly, though, Cineplex is still expected to be profitable despite the increased headwinds. And while its normalized earnings per share (EPS) are expected to be just $0.52 this year, analysts expect a significant jump next year to $1.12.

Strong year-over-year revenue growth of 25.9%, raising revenues to $1.4 billion. Adjusted EBITDAaL increased 190.3% to $157.4 million as compared to $54.2 million in the prior year. Adjusted EBITDAaL margin significantly improved to 11.3% in 2023 compared to 4.9% in 2022.

Hmmm lets do the math $38M from revenues of $1.4B…

In the states TD was fined $3.1 B US - that caught the attention of TD. But again it is pocket change because no one went to jail.