The Federal Court of Appeal has dismissed Cineplex Inc.’s appeal in a closely watched deceptive marketing case, affirming earlier findings that the country’s largest movie theatre chain engaged in illegal “drip pricing” practices. The decision marks a significant victory for the Competition Bureau and reinforces long-standing consumer protection rules requiring price transparency in Canada.
In a statement issued on Friday, January 23, Jeanne Pratt, Acting Commissioner of Competition, welcomed the ruling, calling it “another resounding win for Canadians” and a clear message to businesses about their obligations under the Competition Act.
“This outcome reinforces the Bureau’s clear stance that businesses should not advertise prices that are not attainable,” Pratt said. “Canadians deserve transparency when making purchases. Businesses that fail to comply with the law risk significant financial penalties.”
The dispute dates back to May 18, 2023, when the Competition Bureau filed an application with the Competition Tribunal alleging that Cineplex advertised movie ticket prices that did not reflect mandatory fees added later in the purchasing process. According to the Bureau, the practice misled consumers by promoting lower upfront prices that could not actually be paid at checkout.
On September 23, 2024, the Competition Tribunal ruled in favour of the Bureau, finding that Cineplex had engaged in drip pricing, an advertising tactic in which mandatory fees are revealed only after consumers have been drawn in by an initially lower price.
Cineplex appealed the decision one month later, asking the Federal Court of Appeal to overturn the tribunal’s ruling. The appeal was heard on October 8, 2025. On January 21, 2026, the court dismissed Cineplex’s appeal with costs, leaving the tribunal’s findings intact.
Drip pricing involves advertising a base price that excludes unavoidable fees, which are added later in the transaction. The Competition Act prohibits this practice because it can distort consumers’ price comparisons and purchasing decisions.
The Act allows an exception only when additional fixed charges are imposed by governments such as sales taxes rather than by the business itself.
“Our continued work on this file, along with other drip pricing cases, underlines our commitment to tackling deceptive marketing practices,” Pratt said, emphasizing that enforcement efforts in this area are ongoing.
The ruling sends a strong signal across industries that price transparency is not optional. The Competition Bureau has pursued drip pricing cases for many years under the Act’s Deceptive Marketing Practices provisions, targeting practices that obscure the true cost of goods or services.
Consumer advocates say the Cineplex decision could have ripple effects beyond the entertainment sector, particularly in industries such as travel, ticketing, telecommunications, and online services, where additional fees have historically been common.
The Competition Bureau is urging Canadians to remain vigilant and to report suspected false or misleading price claims.
“We strongly encourage anyone who suspects that a company or individual is making false or misleading price claims to report it by using the Bureau’s online complaint form,” Pratt said.
As Canadian consumers continue to navigate increasingly digital marketplaces, the Cineplex ruling underscores a simple principle at the heart of competition law: the price advertised should be the price consumers can actually pay.
Cineplex responded after the Federal Court of Appeal released its decision, reiterating its disagreement with the ruling and signalling that it intends to pursue the matter further.
In a statement issued on January 23, 2026, the company acknowledged that the appeal court upheld the Competition Tribunal’s September 2024 decision, including the administrative monetary penalty of $39 million tied to the presentation of its online booking fee.
“We respectfully disagree with the Federal Court of Appeal’s decision,” Cineplex said in its statement. “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.”
Cineplex added that it has reviewed the court’s ruling and plans to seek leave to appeal to the Supreme Court of Canada, a process that would require the country’s highest court to agree to hear the case.
The company, which describes itself as Canada’s leading entertainment and media company, did not indicate whether any immediate changes would be made to its pricing practices while it pursues further legal options.
If the Supreme Court grants leave to appeal, the case would move into a new phase of legal review. However, such leave applications are granted selectively and typically only in cases that raise issues of national legal importance.
For now, the Federal Court of Appeal’s decision stands, reinforcing the Competition Tribunal’s findings that Cineplex engaged in drip pricing and affirming the Competition Bureau’s interpretation of the Deceptive Marketing Practices provisions of the Competition Act.
The Competition Bureau has not commented publicly on Cineplex’s intention to seek leave to appeal but has previously emphasized that court decisions in drip pricing cases are critical to ensuring price transparency and consumer trust across Canadian markets.
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