The Competition Bureau is taking legal action against Canada’s Wonderland Company for advertising park tickets and a variety of other items at a lower price than what consumers actually have to pay online. The Bureau alleges that Wonderland is advertising prices that do not include a mandatory fixed fee of $0.99, $6.99, $8.99, or $9.99.
Canada’s Wonderland charges a processing fee for online purchases involving park admission, starting at $6.99 and increasing to $8.99 or $9.99 depending on the number of items purchased. For most purchases of non-admission-related products, a single $0.99 processing fee applies, regardless of the number of items.
The Bureau alleges that Wonderland has made, and continues to make, false or misleading price claims by advertising lower prices than what consumers ultimately have to pay as those prices exclude mandatory fixed fees. This practice, commonly known as drip pricing, is deceptive because consumers are not presented with an attainable price upfront.
Today, the Bureau filed an application with the Competition Tribunal seeking, among other things, for Wonderland to:
- stop the deceptive price advertising;
- pay a penalty; and
- issue restitution to affected consumers who purchased products through Wonderland’s website.
“Canadians should always be able to trust the initial advertised price. We’re taking action against Wonderland because misleading tactics like drip pricing only serve to deceive and harm consumers. For years, we have urged businesses to display the full price of their products upfront. I remind all businesses to review their pricing claims to make sure they do not mislead consumers.”
Matthew Boswell
Commissioner of Competition
Canada’s Wonderland responds to Competition Bureau litigation
Canada’s Wonderland, the country’s premier amusement park, issued the following statement in response to litigation initiated by the Competition Bureau:
“Our guests are at the heart of everything we do. We are committed to providing them with exceptional experiences, clear information and meaningful choice. The allegations made by the Competition Bureau are unfounded and we will defend our commitment to transparency and consumer value.
“Under Canadian law, “drip pricing” refers to the practice of promoting something at one price, while concealing the real price from consumers until later in the purchasing process. Canada’s Wonderland does not engage in this practice. From the outset, our guests receive disclosure of any applicable fees. We ensure customers understand exactly what they are purchasing. It is also important that we provide our guests options so that they may choose products, including ticket or Season Pass products, that best suit their preferences. This flexibility determines the level of processing fee they pay.
“Not only are the Competition Bureau’s allegations unsubstantiated, but its demands to prohibit processing fees – including variable fees – undermine consumer choice and flexibility. The Bureau is seeking to require static, all-inclusive pricing, an approach that can impose higher upfront prices for guests and reduced flexibility and choice.
“Canada’s Wonderland remains dedicated to transparency, customer choice and compliance to the law. We’d like to thank our guests for their continued trust and support as we continue to advocate for your interests and defend our practices.”
