Analysis Group Affiliate Alixandra Barasch Presents on Consumer Perceptions of Drip Pricing at CBA webinar
April 21, 2025
Analysis Group affiliate and University of Colorado Boulder marketing professor Alixandra Barasch discussed consumer perceptions of pricing information during the Canadian Bar Association (CBA) webinar “Straight from the Box Office: Perspectives on the Cineplex Decision.” The webinar was co-organized by Analysis Group Principal Laura O’Laughlin, chair of the CBA’s Deceptive Marketing Committee, along with the CBA Competition Litigation Committee. Sarah Mavula (Baker McKenzie) moderated the webinar, which also featured commentary from Michael Osborne (Cozen O’Connor) and Irene Cybulsky (Competition Bureau of Canada).
In Commissioner of Competition v. Cineplex Inc., the Canadian Competition Tribunal found theater operator Cineplex to have engaged in deceptive “drip pricing” on its website by advertising the ticket price separately from a mandatory fee. The panelists discussed the expert testimony offered in the case, with Professor Barasch providing a framework for understanding how behavioral economics research can inform questions of deception and materiality. Mr. Osborne addressed the potential benefits of such consumer research for educating the factfinder in the context of the “ordinary consumer” standard used in Cineplex. Referring to the consumer standard used by the tribunal, Ms. Cybulsky raised questions about whether naïve and experienced consumers respond differently to deceptive marketing practices. The conversation concluded with the panelists offering their perspectives on the remedy imposed by the tribunal as well as the potential benefits and pitfalls of a requirement for “all-in” pricing disclosures.