Class Action Lawsuit Against AMC: Are You Eligible for Compensation?
A major class action lawsuit against AMC Theaters has resulted in a significant settlement over alleged hidden convenience fees charged to moviegoers. The lawsuit claims that AMC failed to properly disclose additional fees when advertising ticket prices, potentially affecting millions of customers who purchased tickets through AMC's website or mobile app.
The settlement offers compensation to eligible customers who bought tickets at AMC theaters during specific dates, particularly affecting New York theater-goers. This article explains the AMC ticket fee settlement details, outlines eligibility requirements, and provides step-by-step guidance for submitting a claim.
The Controversy: AMC's Convenience Fee Practices
The controversy surrounding AMC's convenience fee practices centers on the company's alleged violation of New York's Arts and Cultural Affairs Law, which requires entertainment venues to display total ticket prices, including fees, before purchase selection. The law specifically prohibits increasing ticket costs during the checkout process, a practice AMC allegedly engaged in consistently.
Explanation of the convenience fee issue
Between August 2022 and January 2024, AMC collected more than $10.70 million in convenience fees through its online platforms, affecting over 4.6 million tickets sold to New York theaters. The theater chain's practice of adding these fees at checkout allegedly violated state statute requirements for transparent pricing in entertainment venues.
How the fee was allegedly hidden from customers
The convenience charges appeared only after customers navigated through multiple screens during the ticket-buying process. AMC implemented a six-minute timer during the theater, show, and seat selection process, creating what the lawsuit describes as a "shot clock" pressure situation. This practice allegedly forced customers to make quick decisions without full price transparency.
Impact on New York theater-goers
The financial impact on moviegoers was significant, particularly for families. The hidden fees could substantially increase the final ticket price:
A family of four faced additional charges of $8.76 at checkout
The extra cost equated roughly to the price of a bucket of popcorn
The lawsuit alleges this "cheap trick" enabled AMC to collect substantial sums from unsuspecting customers. The company has since acknowledged changes to the purchase flow for tickets to New York theaters on its website and agreed to comply with state ticket fee laws moving forward.
Details of the Class Action Settlement
Under the recently approved settlement agreement, AMC Entertainment Holdings has committed to a substantial compensation package for affected customers. The settlement fund totals $8.30 million, representing one of the largest settlements in recent theater industry litigation.
Settlement terms and total compensation offered
Class members have two compensation options. The first is a $7.00 cash payment, while the second includes a complimentary one-year membership to AMC Stubs Premiere, valued at $15.00 plus tax. The Premiere membership provides substantial benefits:
Unlimited waived convenience fees on online ticket purchases
Priority lanes for concessions and box office
Birthday month perks including free large popcorn and fountain drink
Discounted Tuesday tickets
Unlimited free size upgrades on concessions
For existing Premiere members, AMC will add 12 additional months to their current membership. The average retail value of these benefits for New York members exceeded $42.00 in the past year.
AMC's response to the allegations
While agreeing to the settlement terms, AMC has maintained its position of no wrongdoing in the matter. The company stated that it chose to settle "to avoid the uncertainties and expenses associated with continuing the case". This strategic decision allows AMC to resolve the dispute while maintaining its corporate stance on the legitimacy of its previous practices.
Potential changes to AMC's business practices
As part of the settlement agreement, AMC has implemented significant modifications to its operations. The company has already altered the purchase flow for movie tickets to New York theaters on its online platforms. Additionally, AMC has committed to ongoing compliance with applicable state laws regarding ticket fee disclosure. These changes demonstrate a substantial shift in how AMC will handle convenience fees and ticket pricing transparency moving forward.
How to Determine Your Eligibility
Determining eligibility for compensation in the AMC class action settlement requires careful attention to specific criteria and timeframes.
Criteria for class membership
Eligible participants must meet several key requirements:
U.S. residency status
Purchases at NY theaters
No prior arbitration claims related to these issues
Importance of purchase dates and locations
The settlement applies to purchases made between August 29, 2022, and January 16, 2024 specifically at AMC theaters located in New York state. This includes tickets and other goods or services purchased through AMCTheatres.com, the mobile app, or other AMC-operated online platforms.
Verifying your eligibility status
Most eligible customers should have received notification via email regarding their status. Those who haven't received communication can verify their eligibility through the following steps:
Check spam folders for settlement notices
Visit the official settlement website (amcticketfeesettlement.com)
Contact the settlement administrator if unable to locate settlement notice information
Potential class members should note that submitting false claims is prohibited and may harm legitimate class members. The settlement administrator's website provides detailed FAQ sections to help individuals confirm their eligibility before proceeding with a claim.
Steps to Participate in the Settlement
Participating in the AMC ticket fee settlement requires careful attention to specific procedures and deadlines. Class members must follow precise steps to secure their compensation, whether choosing the cash payment or membership option.
Filing a claim for compensation
To receive compensation, eligible participants must submit a claim form through one of two methods:
Online Submission:
Visit the settlement website
Enter the Unique ID from email notice
Complete the claim form
Receive confirmation code via email
For mail submissions, claimants can download and print the claim form, then send it to: AMC Ticket Fee Settlement, P.O. Box 2693, Portland, OR 97208-2693.
Deadlines and important dates
The settlement includes several critical deadlines that class members must observe:
Claim Form Submission: November 8, 2024
Exclusion Request: November 8, 2024
Objection Filing: November 8, 2024
Final Approval Hearing: November 21, 2024
Class members who elect to receive the $7.00 cash payment must submit their claims by the deadline. Those who do not file a claim will automatically receive instructions for enrolling in a free one-year AMC Stubs Premiere membership.
Required documentation and proof of purchase
The settlement administrator has streamlined the documentation process to make it accessible for class members. Notably, no proof of purchase is required for claim submission. However, claimants must:
Provide the Unique ID and Confirmation Code from their settlement notice
Contact the settlement administrator if they haven't received or lost their notice
Submit the claim form under penalty of perjury
After final approval and resolution of any appeals, successful claimants will receive their compensation within 60 days. Those who opted for the AMC Stubs Premiere membership will receive email instructions for activating their benefits.
The settlement administrator will verify all submissions and may request additional information if needed. Class members should note that submitting fraudulent claims not only violates legal requirements but also potentially impacts legitimate claimants.
Conclusion
The AMC ticket fee settlement marks a significant victory for consumer rights, offering affected moviegoers substantial compensation through either cash payments or premium membership benefits. This resolution addresses years of alleged hidden convenience fees that impacted millions of New York theater patrons, resulting in an $8.30 million settlement fund. The straightforward claim process, requiring minimal documentation and offering flexible compensation options, demonstrates AMC's commitment to making amends with affected customers.
This settlement extends beyond mere financial compensation, signaling a shift toward greater transparency in entertainment venue pricing practices. AMC's agreement to modify its ticket purchase system and maintain compliance with state laws sets a precedent for other entertainment companies. These changes promise clearer pricing information for future moviegoers, ensuring customers can make informed decisions without facing unexpected charges during checkout.