ACCC fines Mel Gibson-owned Dendy Cinemas over “price dripping” allegations

National cinema chain Dendy, co-owned by legendary Hollywood film star Mel Gibson, has been fined after it was accused of misleading pricing.

Mel Gibson on the set of Mad Max Beyond Thunderdome, directed by George Miller and George Ogilvie.

Dendy Cinema has been slugged $19,800 after consumer watchdog the ACCC accused it of misleading pricing.

The chain, which has six cinemas across Australia, is owned by Mel Gibson and long-time producing partner Bruce Davey, via their Icon Productions Group, which bought Dendy for $21m in 2008.

A statement from the ACCC alleged Dendy had filed to prominently show the total price of its online movie tickets as a single figure, in a practice commonly known as ‘drip-pricing’.

“The ACCC alleges that Dendy breached the Australian Consumer Law by failing to prominently display the total single price for tickets, including the unavoidable per ticket booking fee, at the earliest opportunity in the booking process,” the statement said.

“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.”

Mel Gibson owns Dendy (Photo by Amanda Edwards/Getty Images)

News Corp Australia has contacted Dendy for comment.

ACCC Deputy Chair Catriona Lowe said businesses must be upfront about the total minimum quantifiable price of a product or service.

“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,” she said.

Dendy cinemas have been fined for ‘price dripping’.

“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 was also looking at pricing practices in the cinema industry more broadly to ensure per ticket booking fees were being presented in a way that complied with the pricing obligations under the Australian Consumer Law.

Finishing touches go on the Dendy Cinemas Coorparoo Square. Picture: Brian Bennion

“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.

Dendy operates 52 screens across six cinemas in NSW, QLD, and the ACT.

Originally published as ACCC fines Mel Gibson-owned Dendy Cinemas over “price dripping” allegations