Case Documents

Ministère de la Justice l♦I Canada

Bureau de la concurrence Services juridiques

Place du Portage, Tour I 22e étage 50 rue Victoria Gatineau QC K1A 0C9

Department of Justice Canada

Competition Bureau Legal Services

Place du Portage, Phase I 22nd Floor 50 Victoria Street Gatineau QC K1A 0C9

Téléphone/Telephone (647) 625-6782

Télécopieur/Fax (819) 953-9267

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VIA EMAIL March 17, 2026 Re: Commissioner of Competition v. Canada’s Wonderland Company (CT-2025-001)

Dear Madam Justice Gagné: Pursuant to Rule 81(1) of the Competition Tribunal Rules, the Commissioner of Competition brings this informal motion seeking leave to amend his Notice of Application in the above referenced matter. Specifically, the Commissioner seeks an order permitting the amendment of the Application to add Six Flags Entertainment Corporation (“Six Flags”) as a respondent to this proceeding. The proposed amended Notice of Application is attached.

Leave is sought pursuant to Rule 104(1)(b) of the Federal Courts Rules. Six Flags satisfies both bases for joinder under that provision. In particular, Six Flags is directly affected by the relief sought in this proceeding. In addition, its participation as a respondent will assist in ensuring that the matters in issue in this proceeding are fully and effectively determined.

The proposed amendments arise from admissions made during discovery and will cause no prejudice. The Commissioner does not seek additional discovery as a result of the proposed amendments nor to change the schedule.

Counsel for Canada’s Wonderland has confirmed that they also act for Six Flags and will accept service on its behalf. They consent to the proposed amendments on the understanding that the Commissioner does not seek additional discovery or any modification to the existing schedule as a result of the proposed amendments, and without prejudice to any position Wonderland and/or Six Flags may take in this proceeding going forward.

If the motion is granted, Wonderland and Six Flags would retain the right to file an amended response to the Application, and the Commissioner would correspondingly be entitled to file an amended reply.

Canada

Regards,

Jonathan Hood

2

Canada

CT-2025-001

THE COMPETITION TRIBUNAL IN THE MATTER OF the Competition Act, R.S.C. 1985, c. C-34, as amended; AND IN THE MATTER OF an application by the Commissioner of Competition for an order pursuant to section 74.1 of the Competition Act regarding conduct reviewable pursuant to paragraph 74.01(1)(a) and as clarified for greater certainty by subsection 74.01(1.1) of the Competition Act;

BETWEEN: COMMISSIONER OF COMPETITION Applicant – and – CANADA’S WONDERLAND COMPANY AND SIX FLAGS ENTERTAINMENT CORPORATION

AMENDED NOTICE OF APPLICATION

Respondents

TAKE NOTICE that the Commissioner of Competition (the “Commissioner”) will make an application (the “Application”) to the Competition Tribunal (the “Tribunal”) for an order pursuant to section 74.1 of the Competition Act, R.S.C. 1985, c. C-34, as amended (the “Act”), in respect of conduct reviewable pursuant to paragraph 74.01(1)(a) and as clarified for greater certainty by subsection 74.01(1.1) of the Act.

AND TAKE NOTICE that the Commissioner relies on the following Statement of Grounds and Material Facts in support of this Application and on such further or other material as counsel may advise and the Tribunal may permit.

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AND TAKE NOTICE that if you do not file a Response with the Registrar of the Tribunal within 45 days of the date upon which this Application is served upon you, the Tribunal may, upon application by the Commissioner and without further notice, make such order or orders as it may consider just, including the order sought in this Application.

TO: Canada’s Wonderland Company 9580 Jane Street Vaughan, Ontario L6A 1S6

Six Flags Entertainment Corporation 8701 Red Oak Boulevard Charlotte, North Carolina 28217

1.

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APPLICATION The Commissioner makes this Application pursuant to section 74.1 of the Act for:

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a. a declaration that the Respondents, Canada’s Wonderland Company (“Canada’s Wonderland”) and Six Flags Entertainment Corporation (“Six Flags”) (collectively “Wonderland”), hasve engaged in, and continue to engage in, reviewable conduct contrary to paragraph 74.01(1)(a) and as clarified for greater certainty by subsection 74.01(1.1) of the Act;

b. an order prohibiting Wonderland from engaging in the reviewable conduct or substantially similar reviewable conduct in Canada for a period of ten years from the date of such order;

c. an order requiring Wonderland to publish or otherwise disseminate notices of the determinations made herein pursuant to paragraph 74.1(1)(b) of the Act in such manner and at such times as the Commissioner may advise and this Tribunal may permit;

d. an order requiring Wonderland to pay such an administrative monetary penalty as the Tribunal deems appropriate;

e. an order requiring Wonderland to pay an amount, not exceeding the total amounts paid to Wonderland for the products in respect of which the reviewable conduct was engaged in, to be distributed among those persons to whom the products were sold, in an amount and manner to be assessed by the Tribunal;

f.

costs; and

g. such further and other relief as the Commissioner may advise and this Tribunal may permit.

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STATEMENT OF GROUNDS AND MATERIAL FACTS

I.

1.

2.

II.

3.

4.

5.

OVERVIEW

Canadians seeking to enjoy all that Wonderland has to offer cannot purchase park admission or related services, such as parking and Fast Lane passes, at Wonderland’s advertised prices. Those advertised prices are unattainable online because they omit a mandatory fixed processing fee.

Wonderland has engaged in this deceptive marketing practice, known as drip pricing, since at least June 2022 when the Act was amended to deem this type of conduct misleading. The processing fee is an ongoing source of revenue for Wonderland.

THE PARTIES

The Commissioner is an officer appointed by the Governor in Council pursuant to section 7 of the Act and is responsible for the administration and enforcement of the Act.

Canada’s Wonderland is incorporated under the Companies Act of Nova Scotia, is registered to do business in Ontario as an extra-provincial corporation pursuant to the Ontario Extra-Provincial Corporations Act, and is a subsidiary of the American based Six Flags Entertainment Corporation. Its registered head office is located at 9580 Jane Street, Vaughan, Ontario, L6A 1S6. Wonderland’s park is a dual amusement and water park situated on 300 acres in Vaughan, Ontario.

Headquartered in Charlotte, North Carolina, Six Flags is incorporated under the laws of Delaware. As the parent company of Canada’s Wonderland, Six Flags ultimately controls Canada’s Wonderland’s operations by setting prices and the processing fee; determining the manner in which prices and the processing fee are advertised to the

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public; and overseeing and directing corporate compliance in relation to those pricing and advertising practices. In doing so, Six Flags directs and controls the representations at issue in this proceeding.

6.

III.

7.

8.

9.

Wonderland operates Canada’s largest amusement park featuring over 200 attractions including 18 roller coasters and a 20-acre water park (the “Park”). It sells a variety of Park related products and services through its website, formerly Canadaswonderland.com and now Sixflags.com/canadaswonderland (“Online”), including for example, Park admissions (such as seasons passes or daily tickets) and services such as VIP lounge access, parking, food and drinks, Fun Pix digital photos, cabana rentals and Fast Lane passes (which allow consumers to skip the line at select rides) (collectively the “Product(s)”).

WONDERLAND’S DECEPTIVE MARKETING PRACTICES

Contrary to paragraph 74.01(1)(a) of the Act, for the purpose of promoting the supply and use of its Products and business interests more generally, Wonderland makes representations to the public that are false or misleading in a material respect about the price consumers must pay to buy its Products.

Wonderland makes these representations in a variety of channels including, for example: Online; in its Facebook, X (Twitter), and Instagram (collectively “Social Media”) posts; in promotional emails; and, in the former Canada’s Wonderland Mobile App and now the Six Flags app (the “App”).

Specifically, Wonderland promotes its Products to the public at prices that are unattainable (the “Unattainable Price Representation(s)”). The prices are unattainable because consumers purchasing Products Online must also pay a fixed obligatory fee (the “Processing Fee”) in addition to the price represented for those Products.

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10. Six Flags determines the pricing of Wonderland’s products, including the Processing Fee, and controls the manner in which these unattainable prices are communicated to the public across Wonderland’s marketing materials and channels.

11. The Act provides in subsection 74.01(1.1) that, for greater certainty, the making of a representation of a price that is not attainable due to fixed obligatory charges or fees constitutes a false or misleading representation, unless the obligatory charges or fees represent only an amount imposed on the purchaser of the product by or under an Act of Parliament or the legislature of a province, which the Processing Fee is not.

The Unattainable Price Representations

12. The two examples below show that Wonderland makes the same or similar Unattainable Price Representations in its Social Media posts, in promotional emails, in the App, and on Product specific web pages and throughout the Online purchase process. Each example is followed by enlarged images of the relevant portion of the Unattainable Price Representations. Green boxes have been added to highlight the unattainable price and fine print (where applicable) contained in the representations.

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Example A

-

Sig

canadaswonderland O • Follow

canadaswonderland e The season is right around the corner, j ust like the turn before the drop on Yukon Striker! @ We're officially 50 days away from

Opening Day on May 8! ~

Get ready for thrills all season long ­grab your Silver Pass now for just $89 and enjoy unlimited visits until Labour Day! Click the " in our bio. 6d

15.teneh Holy 17h Reply journie_ca e The excitement is palpable @

canadaswonderland The season is right around he corner. just like the turn before he drop on Yukon Strike ! e' e offici lly SO d s way from Opening O ry on M y 8! /!J,,

Get read • grab you f!IP!'!l"""'"""'l!"111111111111 .....' """"'l"""'"'!""""'!""9'!!ft nd enjo 0 !C~ .

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Example B

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Ridts&Expenenc.e-s

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(;) C~Al\ot~ Part,

What type of admission are you looking for?

Hill++-

Daily Tickets

From $45

Buy Online & Save! • Save up to $40 off the front gate price • Single day admission

Plus taxes and processing fee up to $9.99.

. Dally Tickets $4 .5 .$1.15 B~Onl-1,Save!. o s.,,,,eup10MOofltht lrontpttpnct • Slogleday~

-U.•fl ____ ....... ,. . u ..

IIOduMs HauM • Wlmnfal .$3.0 Shar,tl'laThl111!.! • Unlwno'ted~..a1n202S • lnduoHKIPOWNn • hckxM!~ouncf« tvootMldWOflltffftl ~nonPus.holdtrl • PuN:r-up1061ick.eu

2025 ColdPIIH

"(lr1---«••·~ :-;t:~=='"- --

2025 Cold Pass

llrint•A•Frlend Tickets

""""'" __. ...,JN ... OOJfft

Includes Haunt + Winterfest .. $115 ,,I

E=Mfrfr♦

• Unlimited visits in 2025 • Includes Halloween Haunt and Winterfest

*Or 7 easy payments of $16.42. Plus taxes and processing fee up to $9.99. View terms and onditions.

Bring-A-Friend Tickets

..

From $30

♦=@+fr-Share the Thrills! • Exclusive discount for Season Passholders

• Purchase up to 6 tickets

Plus taxes and processing fee up to $9.99.

The fixed obligatory fees

13. Wonderland uses its Unattainable Price Representations to attract consumers Online to purchase its Products. It is only after consumers

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have selected the Products they want to purchase, including deciding whether to accept numerous unsolicited offers to also purchase various “add-ons” (i.e., complementary items that can enhance a visit to the Park), that Wonderland adds a pre-determined and pre-set fixed Processing Fee to the cost of each Online purchase.

14. Depending on the number and type of Products selected, Wonderland uses a clearly defined and predictable set of rules to impose a fixed transaction-based Processing Fee in the pre-determined and set amounts of $0.99. $6.99, $8.99 or $9.99.

15. Wonderland applies a fixed $0.99 Processing Fee to transactions involving the purchase of almost all non-admission related Products (e.g., souvenirs, meals and beverages or parking). Regardless of how many of these items are selected, or if they are purchased in combination with each other, Wonderland only applies a single fixed $0.99 Processing Fee.

16. However, Wonderland applies a higher Processing Fee to certain Products, such as Park admission (e.g., season passes and daily tickets), VIP lounge access or Fast Lane passes, either when purchased on their own or in conjunction with the non-admission related Products described in paragraph 65 above.

17. For these transactions, the Processing Fee is based on a clearly defined and predictable set of rules, with pre-determined and set amounts already incorporated into the Online purchase process before the Unattainable Price Representations are made to consumers. In those instances, the pre-determined and set amount of the Processing Fee is based on the number of items selected for purchase, and is subject to the following clearly defined and predictable rules:

• $6.99 if one to two items are selected for purchase;

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• $8.99 if three to four items are selected for purchase; and • $9.99 if five or more items are selected for purchase.

18. The Processing Fee is obligatory because consumers must pay the Processing Fee to complete their Online purchase for virtually all of the Products Wonderland offers for sale. Wonderland knows that it will be following its clearly defined and predictable rules in adding the pre­determined and set amount of the Processing Fee to each Online transaction. As such, the obligatory fees have been fixed before Wonderland’s Unattainable Price Representations are made.

The Unattainable Price Representations are false or misleading to consumers

19. Subsection 74.01(1.1) simplifies the process of determining whether a price representation is false or misleading when assessing whether a person has engaged in reviewable conduct contrary to paragraph 74.01(1)(a) of the Act. With the sole exception of legislated charges or fees imposed directly on consumers, subsection 74.01(1.1) deems making a representation of a price that is not attainable due to a fixed obligatory charge or fee to be false or misleading.

20. The initially advertised prices featured in the Unattainable Price Representations are not attainable due to Wonderland’s fixed obligatory Processing Fee. Unlike HST, Wonderland’s Processing Fee is not imposed on consumers by or under an Act of Parliament or the legislature of a province. As the fixed obligatory Processing Fee does not fall within the sole legislative exemption, the Unattainable Price Representations are deemed to be false or misleading for the purposes of paragraph 74.01(1)(a) of the Act.

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The Unattainable Price Representations are material to consumers

21. Price is an essential element in every consumer purchase transaction and is invariably material to a consumer’s decision making. That includes decisions about whether to purchase Products from Wonderland, to visit other attractions or water parks or deciding not to purchase anything at all.

IV.

EXAMPLES OF WONDERLAND’S MISLEADING REPRESENTATIONS

MATERIALLY

FALSE

OR

22. Wonderland has made, and continues to make Unattainable Price Representations Online, in its Social Media posts, in promotional emails and in the App, promoting the Online sale of its Products. Wonderland’s Unattainable Price Representations have reached, and continue to reach, the Canadian public countless number of times on a daily basis. A few examples of Wonderland’s materially false or misleading Unattainable Price Representations are set out below.

Social Media Example 1 – July 29, 2022 Facebook post

23. The image below depicts an example of how the Unattainable Price Representation appeared in Wonderland’s July 29, 2022 Facebook post. Wonderland made the following Unattainable Price Representation “… Season Passholders can bring up to four friends each day for only $34.99* each when purchased online.” This example is followed by an enlarged image of the relevant portion of the Unattainable Price Representation. Green boxes have been added to highlight the unattainable price and fine print contained in the representation.

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C,m.id!.i's Wonderfand July 29, 2022 · a

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'ers ca,n bring tJ'P to fou r friend$ each d.iy for onty his summer sizzler sale i,s on for a limitoo time!

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24. The initially advertised price of $34.99 for Bring-A-Friend Tickets is rendered unattainable by the fixed obligatory Processing Fee that is applied to the Online transaction. In line with Wonderland’s clearly defined and predictable set of rules guiding the application of the fixed obligatory Processing Fee, the full cost of a Bring-A-Friend Ticket is actually $41.98 ($34.99 + the $6.99 Processing Fee) if purchased on its own and not the unattainable price of $34.99 as advertised.

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25. While the fine print instructs consumers to “See details online”, it does not render the Unattainable Price Representation attainable.

Promotional Email Example 2 – February 14, 2025, Family Day Sale

26. The image below depicts an example of how the Unattainable Price Representation appeared in Wonderland’s February 14, 2025, Family Day Sale promotional email. Wonderland made the following Unattainable Price Representation that consumers could purchase “… tickets to Canada’s Wonderland for just $35 each, a savings of over 60% off Single Day Admission …” [Emphasis in the Original]. Green boxes have been added to highlight the unattainable price and fine print contained in the representation.

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Zimmerman, Adam (CB/BC)

From: Sent: To: Subject:

Canada's Wonderland <canadaswondertand@parks.sixflags.fun> February 14, 2025 9:15 AM Zimmerman, Adam (CB/BC) Don't Wait • Last Chance for Our Family Day Sale

Can•ad a's Wonder.land

to Canada's Wonderland for just $35 each, a savings of over 60% off ay xperience an unforgettable day of rides, shows, and more starting Opening Day, May 8.

Don't wait - this sale ends in less than 48 hours.

BUY NOW

FOLLOW US: f ~ a ct

Un1ubKrl.be Now SUBSCRIPTION INFORMATION: Thi• """'""!le wa, •ent 10 ADAM.ZIMMERMAN@CB-BC.GC.CA ao a result ol your elecllon lo rOCIIM) ..,...1 from Canada's Wordef1and. Vlsill our on line protile oentflr' wt'M!!lre you can ma~ yout pmr11e, control your list pretel'enoes. ot

CN101Escri>e fn,m all e-mail from Six F1ago En1ertmmenl Corporation.

ADMINISTRATIVE INFORMATION: This e-mail Is published by Canada's Wonderland, 9580 Jane SL, Vaughan, ON L6A 156. Canada's Wondedand is a brand d She Flags Entertainment Corporation. C 2025 SIX FLAGS ENTERTAINMENT CORPORATION

C 2025 PEANUTS WORLDWIDE U.C PRIVACY POLICY: We re'llflC( your right lo privacy. This Canada's Won<lerland publiealioo Is subject to ltol Six Fl1;19i Entel'Ulinment CQfPOf,1;1tion online privacy policy.

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27. The initially advertised price of $35 for a Single Day Admission is rendered unattainable by the fixed obligatory Processing Fee that is applied to the Online transaction. In line with Wonderland’s clearly defined and predictable set of rules guiding the application of the fixed obligatory Processing Fee, the full cost of a Single Day Admission is actually $41.99 ($35 + the $6.99 Processing Fee) if purchased on its own, and not the unattainable price of $35 as advertised.

28. While the fine print in this email notes that consumers will also have to pay “taxes and processing fee of up to $9.99”, it contradicts the initial price representation and does not render the advertised $35 price attainable.

Online Example 3 – April 27, 2025 Single Day Admission and Parking

29. The image below depicts an example of how the Unattainable Price Representation appeared on the Daily Tickets page Online on April 27, 2025. Wonderland made the following Unattainable Price Representation that consumers could purchase “Daily Tickets from $45”, a “2025 Gold Pass … [for] $115”, or “Bring-A-Friend Tickets from $30”. This example is followed by an enlarged image of the relevant portion of the Unattainable Price Representation. Green boxes have been added to highlight the unattainable price and fine print contained in the representation.

• ~ Tir;kei~ g. Pnses

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What type of admission are you looking for?

MlihHhi

Daily Tickets

From $45 +=@+fr-

Buy Online & Save! • Save up to $40 off the front gate price • Single day admission

Plus taxes and processing fee up to $9.99.

Sui.onPHI - . Da . lly . 20 . 25 Tlckets Gold Pass ,.....,.._.Wlr,c....,_ $45 $115 8uy0nl-&S......i • LJ,r,lwn,'i~'V1!i131n202S • s...-eup1aMOotlthe • lncludn~ frontp!tpo(t K-,i.-n(IW~~ • Sinpd.-y.idnVWon _,_ _._., .. 4,i'

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2025 Cold Pass

_,. .... __. ..,,.,,....., ..,s, ..

Includes Haunt • Winterfest .. $115

• Unlimited visits in 2025 • Includes Halloween Haunt and Winterfest

•or 7 easy payments of $16.42.

Plus taxes and processing fee up to $9.99. View terms and conditions.

,, Bring-A-Friend

..

Tickets

From $30

Share the Thrills! • Exclusive discount for Season Passholders

• Purchase up to 6 tickets

Plus taxes and processing fee up to $9.99.

30. After clicking on the Daily Tickets “Buy Now” button the consumer moves further down the purchase funnel and begins a 4-step Product selection process.

31. While telling customers Wonderland is “Preparing your Admission offers!”, Wonderland shows its Products in a set order using pop-up