North America's Top Cinema Chain Embroiled in Massive Class Action Lawsuit

Published 2 hours ago2 minute read
Precious Eseaye
Precious Eseaye
North America's Top Cinema Chain Embroiled in Massive Class Action Lawsuit

A class action lawsuit targeting Cineplex Entertainment, Canada's largest movie theater chain, is set to proceed to trial following a ruling by the Supreme Court of Quebec. This legal action challenges a $1.50 CDN online ticketing fee applied to all tickets purchased via Cineplex's website and mobile app. The lawsuit specifically encompasses all individuals who bought tickets in this manner within the province of Quebec. While this case moves forward, another similar lawsuit filed in British Columbia remains pending.

Cineplex, a dominant force in the Canadian entertainment industry, commands approximately 75% of the Canadian box office and operates over 150 theaters nationwide. The corporation has faced legal scrutiny previously, having been fined $39 million CDN by Canada's Competition Tribunal for engaging in "drip pricing," a deceptive marketing practice explicitly outlawed by the Competition Act. This fine was upheld by the Federal Court of Appeal earlier this year, and Cineplex is also prohibited from continuing such deceptive marketing practices.

The history of Cineplex traces back to its founding in 1979 by Garth Drabinsky, a notable Canadian film and theatrical impresario who later went to prison for fraud and forgery, and Nat Taylor, an inventor credited with producing Canada's first horror film, "The Mask." Their inaugural venture, an 18-screen multiplex located in the Toronto Eaton Centre, earned a Guinness World Record as the world's largest movie theater at the time. Beyond operating cinemas, Cineplex also ventured into film production, notably producing Canadian films such as the heist thriller "The Silent Partner" and the haunted house chiller "The Changeling."

Cineplex demonstrated significant expansion over the years. In 1984, it acquired its competitor Odeon, leading to its renaming as Cineplex Odeon. This entity later merged with the American theater giant Loews. Subsequently, the Canadian operations of the merged company were spun off, re-establishing themselves as Cineplex and proceeding to absorb several other competing Canadian theater chains, including Galaxy and Famous Players. In 2020, a proposed acquisition by the British theater giant Cineworld was ultimately scuttled due to the onset of the COVID-19 pandemic.

The company also operates the popular Scene+ rewards program, which was launched in 2007, enhancing customer loyalty. Globally, Cineplex holds the position of the 7th largest movie chain, while the top spot is held by the United States' AMC Theaters, which operates a vast network of 940 movie theaters worldwide.

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