Dendy Cinema has paid a $19,800 penalty for allegedly failing to display the total price of online movie tickets, including booking fees, at the start of the booking process.
The penalty was issued after the Australian Competition and Consumer Commission (ACCC) found that Dendy had only revealed the total price towards the end of the transaction, while displaying a lower price upfront that did not include the mandatory booking fee.
“Businesses must be upfront about the total minimum quantifiable price of a product or service,” Catriona Lowe, ACCC Deputy Chair, said.
“Consumers are sometimes lured into purchases they would not otherwise have made when businesses display only part of the price upfront and reveal the total price only towards the end of the purchasing process.”
“By initially only displaying part of the total price for a movie ticket, Dendy has reduced the ability of consumers to make an informed purchasing decision.”
The ACCC said it is looking at pricing practices across the cinema industry to ensure businesses comply with the Australian Consumer Law.
“We encourage all businesses to review their online pricing practices to ensure they are complying with their obligations under the law, including providing the total minimum quantifiable price of products and services in their advertising and at the earliest opportunity in the booking process,” Lowe said.