A Quebec Court of Appeal ruling that ordered Air Canada to pay more than $10 million in punitive damages in a class action lawsuit underscores the growing risks companies engaging in drip pricing face, according to legal pundits.
The Appeal Court decision, following a long 15-year legal battle, marks the third significant case dealing with unbundled pricing over the past year, with the Competition Tribunal ordering Canada’s largest cinema chain, Cineplex Inc., to pay a record penalty of over $38.9 million for deceptive marketing practices by adding a mandatory $1.50 online booking fee, the first enforcement of the drip pricing provisions introduced by the amendments to Canada’s Competition Act. In June 2024, the Competition Bureau also reached an agreement with SiriusXM Canada, a subscription-based satellite radio and streaming content provider, over subscription price representations. Sirius agreed to pay a $3.3 million penalty, enhance its compliance program, and pledged not to engage in drip pricing.