Cineplex has filed a notice of appeal to overturn the Competition Tribunal’s $38.9 million fine for its online booking fee.

Cineplex has also filed a motion to request a stay of the penalty until the appeal process has been completed. The company said it has been granted a stay of the monetary penalty until the Federal Court of Appeal has heard its motion, according to a statement issued by Cineplex on Thursday (Oct. 24).

That order was issued in September, after the Tribunal ruled in favour of the Competition Bureau on its accusation of drip pricing. The ruling also ordered Cineplex not to engage in the same conduct or similar conduct for a period of 10 years.

Cineplex’s mandatory online booking fee, which was in place from June 2022 until December 2023, cost up to $1.50.  The Bureau’s lawsuit alleged the fee was not sufficiently disclosed to consumers. As a result, the online booking costs did not match Cineplex’s advertised prices.

The Bureau labeled this practice drip pricing, a marketing tactic meant to deceive consumers. The tactic was explicitly recognized as harmful by the Competition Act in June 2022.

“We continue to emphasize that the online booking fee has always been about choice and is an optional, value-added service. It provides moviegoers with the convenience of online booking – knowing they have a ticket for a specific show time and an exact seat location before they arrive at a theatre,” read the statement.

“We believe that the fee is presented on our website and app in a clear and prominent manner, and fully complies with the spirit and letter of the law.”

The Competition Bureau previously argued the $38.9 million penalty would be equivalent to what Cineplex collected from online consumers through the fee.

Image courtesy of Cineplex