AceShowbiz - A significant legal challenge is underway against Cineplex Entertainment, Canada's largest movie theater chain, as the Supreme Court of Quebec has authorized a class action lawsuit to proceed. The suit targets the company’s online ticketing fee, specifically a $1.50 CDN charge applied to tickets purchased via its website and mobile app.

Cineplex Entertainment dominates the Canadian box office, controlling approximately 75% of the market with over 150 theaters nationwide. This lawsuit will represent all consumers in Quebec who purchased tickets through the company’s online platforms. Meanwhile, a similar legal action remains pending in British Columbia, signaling widespread scrutiny of Cineplex’s pricing practices.

The controversy centers on the $1.50 convenience fee added to online ticket purchases, which plaintiffs argue was not transparently disclosed. This fee has drawn criticism for what is known as “drip pricing,” a marketing tactic where the final price is revealed late in the purchase process, often misleading customers. This practice was previously deemed deceptive by Canada’s Competition Tribunal, which imposed a $39 million CDN fine on Cineplex.

The Competition Act in Canada explicitly prohibits such deceptive marketing methods. Despite Cineplex’s appeal against the tribunal’s ruling, the Federal Court of Appeal upheld the $39 million fine earlier this year. Alongside the penalty, the company is legally barred from continuing these practices, yet the current class action lawsuit aims to hold it accountable for the ongoing impacts of the online ticket fee.

Founded in 1979 by Garth Drabinsky and Nat Taylor, Cineplex has a long history in Canadian cinema and theater operations. Its first theater was an 18-screen multiplex located in the Toronto Eaton Centre, which at the time was recognized by Guinness World Records as the largest movie theater globally. Over the years, Cineplex expanded by acquiring competitors including Odeon, Galaxy, and Famous Players, eventually becoming the dominant force in Canadian movie exhibition.

Besides operating theaters, Cineplex also ventured into film production, backing notable Canadian movies such as the heist thriller The Silent Partner and the horror classic The Changeling. The company later merged with American theater giant Loews before spinning off to form what is now known as Cineplex Entertainment.

In 2020, Cineplex was close to being acquired by the British chain Cineworld, but the deal was disrupted by the onset of the COVID-19 pandemic. Despite this setback, Cineplex remains the seventh largest movie theater chain worldwide, trailing behind the U.S.-based AMC Theatres, which operates 940 theaters globally.

One of the company’s well-known consumer engagement initiatives is the Scene+ rewards program, launched in 2007. This loyalty program has been a popular way to attract and retain customers in the competitive North American cinema market.

The Supreme Court of Quebec’s decision to allow the class action to move forward marks a pivotal moment for Cineplex. If the case goes to trial, it could have broad implications for how movie theaters in Canada charge online ticket fees and disclose pricing information.

Legal experts and industry observers will be watching closely as this case develops. For consumers, this lawsuit serves as a reminder to scrutinize ticket pricing carefully, especially when booking through digital platforms.

Cineplex faces ongoing challenges in balancing profitability with consumer trust, and the outcome of this class action could influence the company’s business practices moving forward. The ruling also highlights the increasing role of provincial courts in addressing consumer protection issues related to digital commerce.

Stay tuned to Collider for updates on this evolving story and other developments in the cinema industry, including ticketing policies, reward programs, and the legal landscape shaping movie theaters across Canada and beyond.

This article is based on reporting originally published by Collider.