Mel Gibson’s Dendy Cinemas fined for ‘drip pricing’ tickets, ACCC to investigate industry ticket prices

Australia’s consumer watchdog says it is investigating movie ticket pricing across the industry after a major chain co-owned by Hollywood actor Mel Gibson was fined almost $20,000 for its pricing practices. The parent company of Dendy Cinema, which operates six locations on Australia’s east coast, has paid $19,800 after the Australian Competition and Consumer Commission (ACCC) alleged the cinema chain had engaged in “drip pricing”. Gibson and his business partner Bruce Davey bought Dendy in 2008 for $21m. It is still held by Gibson and Mr Davey’s Dendy Icon Group. Gibson has produced films with Mr Davey, including the Gibson-starring Braveheart, The Passion of Christ and Apocalypto. The ACCC said Dendy failed to prominently display the total single price for tickets – including the unavoidable booking fee – at the earliest opportunity in the booking process. “Instead, Dendy displayed prices that did not include the unavoidable per-ticket booking fee and did not display a total price for tickets until consumers reached the final stages of the online transaction,” the watchdog said. ACCC deputy chair Catriona Lowe said businesses needed to be upfront about the minimum cost of their products under Australian Consumer Law. “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,” Ms Lowe 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.” Following the action, the ACCC is looking industry-wide at cinema ticket pricing practices to ensure theatres are complying with the 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,” Ms Lowe said. The ACCC has previously taken action against online travel agent Webjet for similar practices in November last year. Webjet advertised minimum prices that did not include compulsory fees.