Description: This past week saw Canada’s Competition Tribunal holding hearings on Cineplex’s so-called “junk fees.” The Tribunal is looking at whether or not Cineplex can continue to charge movie-goers a $1.50 fee for purchasing a ticket online; or, will it declare that the fee meets the definition of a harmful business practice under the Competition Act? Since 2022, these junk or drip fees have generated $40 million in revenue for the movie firm.

Date:  February 29, 2024

Source:  globalnews.ca

 Link: https://globalnews.ca/news/10327620/cineplex-competition-tribunal-junk-fees-wrap-up/

Discussion points:

1) Have you noticed these junk fees on any of your movie ticket purchases? How about other students on your campus?

2) Were you aware that Canada has a Competition Bureau that can intervene on such matters?

3) Page 11-1 of Wiley’s Financial Accounting: Tools for Business Decision-Making discusses Cineplex’s statement of cash flows. What are the three key activities shown on this statement?