Canada's Wonderland Accused of Drip Pricing: A Legal Battle Brewing
Canada's Wonderland, a popular amusement park north of Toronto, is facing a lawsuit from the Competition Bureau of Canada, accused of employing deceptive pricing tactics. The Bureau alleges that the park's online ticket and merchandise sales utilize "drip pricing," a practice that hides mandatory fees until the very end of the purchase process. This article delves into the details of the lawsuit, Canada’s Wonderland’s response, and what it means for consumers.
The Competition Bureau's Case Against Canada's Wonderland
The Competition Bureau claims that Canada's Wonderland is advertising prices online that don't include mandatory processing fees, ranging from $0.99 to $9.99, depending on the number of items purchased. For park admission tickets, the fee starts at $6.99 and goes up to $8.99 or $9.99. Non-admission items generally incur a single $0.99 fee.
- The Bureau argues this constitutes drip pricing, a deceptive practice because consumers are not presented with the full, final price upfront.
- They contend this violates Canadian consumer protection laws and is misleading to customers.
- The Competition Bureau has filed an application with the Competition Tribunal, seeking an order to stop the alleged deceptive advertising, impose a penalty on Canada's Wonderland, and provide restitution to affected customers.
Commissioner of Competition, Matthew Boswell, stated, "Canadians should always be able to trust the initial advertised price. We’re taking action against Wonderland because misleading tactics like drip pricing only serve to deceive and harm consumers."
Canada's Wonderland's Response
Canada's Wonderland vehemently denies the accusations, calling them "unfounded." In a statement, the park insists that it complies with Canadian law and provides transparent pricing information.
- Wonderland argues that all applicable fees are clearly disclosed at the beginning of the purchase, asserting that they do not conceal any pricing information.
- They further argue that the Bureau's demands to prohibit processing fees, including variable fees, would limit consumer choice and potentially lead to higher base prices.
- The park maintains its commitment to transparency, customer choice, and compliance with the law.
The company's statement emphasizes their dedication to guest satisfaction and their belief that offering varying processing fees provides customers with flexibility and choice.
What is Drip Pricing?
Drip pricing is the practice of advertising a lower price than what the consumer ultimately pays because mandatory fees are added later in the purchasing process. This can make the final cost significantly higher than what was initially advertised. This is considered deceptive because it doesn't provide consumers with a clear, upfront price. The Competition Act in Canada explicitly prohibits such practices.
Similar Cases and Implications
This isn't the first time the Competition Bureau has taken action against companies for drip pricing. A notable case involved Cineplex, which was fined $39 million for similar practices (a ruling currently under appeal). The outcome of the Canada's Wonderland case will likely set a precedent for online pricing transparency in Canada and significantly impact how other businesses approach online pricing.
Conclusion
The legal battle between the Competition Bureau and Canada's Wonderland highlights the ongoing debate surrounding online pricing transparency. The outcome of this case will have far-reaching implications for businesses across Canada, and it serves as a reminder for consumers to be vigilant about hidden fees when making online purchases. The case emphasizes the importance of clear and upfront pricing for all businesses operating in Canada.
