Joshua Thompson is a regular visitor to the AMC Theater in Livonia, Michigan and now he’s fighting against that location for charging what he considers unfair prices for concessions including beverages and candy.
The security technician has filed a class action lawsuit against American Multi Cinema (AMC) in Wayne County Circuit Court for which he claims the company is violating Michigan Consumer Protection Act by charging an excessive amount of money for snacks.
Thompson’s lawyer Kerry Morgan says of the lawsuit:
“He got tired of being taken advantage of. It’s hard to justify prices that are three- and four-times higher than anywhere else.”
While it is true that theaters charge ridiculous prices for snacks, most customers fail to realize that movie studios collect most of the profits for their movies, sometimes upwards of 80% to 90% of all money collected, leaving little to no margin based solely on ticket sales
Consumer experts are predicting that the class action lawsuit will quickly be thrown out of court but it seems to have struck a chord with theater customers who have recalled paying $1 to see movies as children with a soda and popcorn included.
Thompson did a bit of local research and discovered that a Coke and a package of Goobers chocolate runs $8 at his local AMC chain and just $2.73 at a nearby drug store.
In the lawsuit the movie theater regular wants customers who were overcharged for concessions to receive refunds and he is asking for a civil penalty to be invoked against the theater.
The suit is being considered by Judge Kathleen Macdonald and because the state Supreme Court in 1999 and 2007 exempt most regulated businesses from the Michigan Consumer Protection Act it’s likely she’ll dismiss the lawsuit before it goes any further.
Do you think AMC will lose this lawsuit or is it dead in the water before it even really begins?