The Litigator
The Litigator
AGM :: Affleck Greene McMurtry LLP
THE LITIGATOR
Affleck Greene McMurtry LLP
365 Bay Street, Suite 200  ·  Toronto, Canada
416 360 2800  ·  info@agmlawyers.com  ·  www.thelitigator.ca

Directors Fined Personally in FlightHub DRIP Pricing Settlement

Airplane

Fly Away Hidden Fees

In our Competition Law Year In Review 2019, we reported on Canada’s Competition Bureau’s interim consent agreement with FlightHub prohibiting it from using misleading marketing practices on its websites.

On February 24, 2021, FlightHub and the Bureau settled the Bureau’s allegations that the operator of FlightHub.com and JustFly.com misled consumers about prices and services, made millions in revenue from hidden fees, and posted false online reviews.

The Bureau has been prosecuting claims of alleged drip pricing for a number of years (see some of our posts here). Drip pricing includes the practice of advertising low prices to attract consumers while burying mandatory fees in the terms and conditions. This practice can be misleading to consumers and contrary to the Competition Act.

FlightHub Group Inc. agreed to pay a $5 million fine. Interesting from this settlement are fines of $400,000 each against two company directors personally. The company is now insolvent, so the $5 million fine will be treated in accordance with the Companies’ Creditors Arrangement Act. The company and the two directors have been prohibited from making any further false or misleading claims for a period of 10 years.

Some of FlightHub’s offending practices included:

  • Actively concealing fees that it charged consumers for seat selection
  • Not being able to secure seats selected and paid for by many consumers
  • Increasing prices after consumers selected a flight
  • Consumers being charged additional fees to change or cancel flights despite being given the opposite impression
  • In some cases, after a consumer agreed to cancel a flight in return for a travel credit of a specific value, the value later decreased

Michael Binetti
Affleck Greene McMurtry LLP

Michael Binetti

Michael Binetti*, Managing Partner of Affleck Greene McMurtry LLP, brings a wealth of litigation experience, with extensive expertise in both trials and appeals. Known for his strategic legal acumen, Michael has consistently demonstrated his ability to navigate complex cases and deliver successful outcomes across a wide range of litigation areas. Peers and clients alike praise Michael as an “excellent and creative lawyer” who “finds unique solutions to complex problems” and “knows how to win.” Recognized for his dedication and professionalism, he is described as a “strong advocate who always looks out for the best interests of his clients” and provides “timely, honest, and extremely valuable counsel.” Michael’s reputation for excellence is underscored by his inclusion in ranking services such as Best Lawyers, Lexology, and Lexpert.

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