Latest news with #dripPricing
News.com.au
25-06-2025
- Business
- News.com.au
Dendy Cinemas fined for ‘drip-pricing' tickets, ACCC to investigate industry ticket prices
Australia's consumer watchdog says they investigating movie ticket pricing across the industry, after a major chain was fined almost $20,000 for their pricing practices. The parent company of Dendy Cinema, which operates six locations on Australia's east coast, has paid $19,800 after the Australian Competition and Consumer Commission (ACCC) alleged it had been engaging in 'drip-pricing'. The ACCC says Dendy allegedly failed to prominently display the total single price for tickets - including the unavoidable booking fee - at the earliest opportunity in the booking process. 'Instead, Dendy displayed prices that did not include the unavoidable per-ticket booking fee, and did not display a total price for tickets until consumers reached the final stages of the online transaction,' the watchdog said. ACCC deputy chair Catriona Lowe said businesses needed to be upfront about the minimum cost of their products under Australian Consumer Law. 'By initially only displaying part of the total price for a movie ticket, Dendy has reduced the ability of consumers to make an informed purchasing decision,' Ms Lowe said. 'Consumers are sometimes lured into purchases they would not otherwise have made when businesses display only part of the price upfront, and reveal the total price only towards the end of the purchasing process.' Following the action, the ACCC is looking industry-wide at cinema ticket pricing practices to ensure theatres are complying with the law. 'We encourage all businesses to review their online pricing practices to ensure they are complying with their obligations under the law, including providing the total minimum quantifiable price of products and services in their advertising and at the earliest opportunity in the booking process,' Ms Lowe said. The ACCC has previously taken action against online travel agent Webjet for similar practices in November last year.
National Post
09-06-2025
- Business
- National Post
Competition Bureau sues DoorDash for allegedly misleading customers over fees
Canada's competition watchdog is suing DoorDash Inc. and its Canadian subsidiary, accusing it of marketing its online delivery services at a lower price than what consumers actually wind up paying. Article content The Competition Bureau alleged Monday that an investigation found DoorDash customers were unable to purchase food and other items at prices advertised on the food delivery company's websites and mobile apps because of mandatory fees added at checkout. Article content Article content Article content The extra charges range from service and delivery fees to amounts sought for couriering things a further distance, placing smaller orders or making purchases in B.C., where DoorDash has to comply with minimum wage regulations for gig workers. Article content Article content The bureau alleged the charges were sometimes framed as if they were taxes, when in reality, they are charges imposed at DoorDash's discretion. Article content The fees resulted in customers paying higher prices than advertised and amounted to a deceptive practice known as drip pricing, which the bureau alleges DoorDash may have used for close to a decade to make nearly from $1 billion from mandatory fees. Article content The bureau wants the company to stop the practice, cease portraying fees as taxes, pay a penalty and issue restitution to affected consumers. Article content DoorDash is pushing back on the requests, saying 'it does not hide fees from consumers or mislead them in any way.' Article content 'This application is a misguided and excessive attempt to target one of Canada's leading local commerce platforms,' DoorDash spokesperson Trent Hodson said in a statement to The Canadian Press. Article content Article content 'It unfairly singles out DoorDash, and we intend to vigorously defend ourselves against these claims.' Article content The Competition Bureau has been more aggressive in its fight against drip pricing since the Competition Act was amended in June 2022 to more clearly distinguish the practice as harmful, giving regulators more room to pursue companies who engage in such activity. Article content The bureau accused Cineplex Inc. of drip pricing in May 2023, eventually winning a $38.9-million fine against the movie theatre giant, which is contesting the decision from the Competition Tribunal. Article content Other recent Competition Bureau targets for drip pricing have included SiriusXM Canada, Discount Car & Truck Rentals Ltd. and TicketNetwork. Article content Its Door Dash court filing shows it is going after the business for making 'false or misleading representations' because 'when consumers go online to order, they expect these services to deliver not just food, but also honest pricing.' Article content 'Consumers expect that the price they see advertised will match what they ultimately pay,' the bureau's application said. Article content
