The Competition Bureau has initiated legal proceedings against Canada’s Wonderland, a major amusement and water park located north of Toronto, accusing it of engaging in ‘deceptive marketing practices.’ The allegations center on the practice of ‘drip pricing,’ where a company advertises lower prices than what consumers ultimately pay, excluding mandatory fixed fees.
In a recent news release, the bureau accused Canada’s Wonderland Company of misleading consumers by advertising prices that do not reflect the total cost, a tactic deemed deceptive as it prevents consumers from knowing the attainable price upfront. Matthew Boswell, Commissioner of Competition, emphasized the importance of transparency, stating, ‘Canadians should always be able to trust the initial advertised price.’
Alleged Misleading Price Claims
The bureau’s application against Wonderland was filed with the Competition Tribunal, seeking to halt the alleged deceptive price advertising, impose a financial penalty on Wonderland, and provide restitution to affected consumers. The bureau claims that Wonderland continues to make ‘false or misleading price claims’ by advertising lower prices that exclude mandatory fees.
According to the bureau, the practice violates the Competition Act, which prohibits advertising unattainable prices unless the excluded fees are government-imposed, such as sales tax. Wonderland charges a processing fee for online purchases of park admission, starting at $6.99 and rising to $8.99 or $9.99 depending on the number of items purchased. For non-admission items, a flat $0.99 processing fee is applied.
Wonderland Denies Allegations
Canada’s Wonderland has refuted the bureau’s claims, labeling them as ‘unfounded’ and affirming its commitment to transparency and consumer value. In a statement, the company asserted that it provides consumers with clear information from the start, ensuring they understand what they are purchasing.
‘Under Canadian law, ‘drip pricing’ refers to promoting something at one price while concealing the real price until later in the purchasing process. Canada’s Wonderland does not engage in this practice,’ the statement read. The company argued that prohibiting processing fees would restrict consumer choice and impose higher upfront prices.
Legal Perspective
Nikiforos Iatrou, a partner at McCarthy Tetrault, explained that drip pricing involves advertising a product at a certain price but adding unavoidable fees during the purchase process. While taxes and government-imposed fees are standard, the issue arises with non-mandatory fees.
Iatrou noted that the bureau has previously examined drip pricing in industries such as car rentals and ticket sales for concerts and movies, and is now turning its attention to amusement parks. ‘Consumers need the right tools to make informed buying decisions, and the Competition Act includes elements to promote transparent pricing,’ he stated.
About Canada’s Wonderland
Canada’s Wonderland, a subsidiary of Six Flags Entertainment Corporation, spans over 120 hectares and boasts more than 200 attractions, including 18 roller coasters. The park is a significant entertainment hub, attracting visitors from across the region.
Consumers and businesses alike are closely watching the outcome of this legal battle as it could have implications for pricing practices across the industry. The Competition Bureau’s actions are part of a broader effort to ensure fair pricing and transparency for Canadian consumers.
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Note: This article is inspired by content from https://www.cbc.ca/news/canada/toronto/competition-bureau-canada-wonderland-alleged-misleading-advertising-1.7526933. It has been rephrased for originality. Images are credited to the original source.