Business & Tech

POLL: Man Sues over Movie Popcorn Prices

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Seven bucks for a bag of popcorn. Five for a soda.

Is that price gouging? A Michigan man and his attorney say yes.

Joshua Thompson, a self-described "avid moviegoer" from Livonia, Mich., filed a class-action lawsuit against AMC Theaters last week in a Michigan county court.

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Despite skepticism from some legal experts, Thompson and attorney Kerry Morgan say movie theaters are indeed price gauging when it comes to snacks, according to their interpretation of Michigan's Consumer Protection Act.

Here in New York, consumer protection is handled by the Department of State. Westchester County also has its own Department of Consumer Protection.

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Now that the word's out, Morgan said he believes movie buffs will flock to the cause as co-plaintiffs.

"Consumers, by and large, feel very strongly about this," the attorney told the LA Times.

Readers might wonder: Why doesn't Thompson just sneak a few snacks into the theater? The Michigan man says he did, but his local AMC has begun a crackdown on snack sneakers and has put up new signs warning movie-goers they're not allowed to bring in their own food.

Why do theaters charge so much for popcorn, snacks and drinks? That's a popular question and even the title of a book about consumer pricing. The answer: distributors and studios keep the lion's share of box office receipts. During first-week runs, when movies draw the biggest audiences, the distributor cut is as much as 95 percent.

What's left for theater operators? The Hollywood Reporter notes:

"According to one Morningstar equity analyst, of every dollar spent on candy and soda in movie theaters, 85% is pure profit. Another review of the business of selling popcorn reveals that $30 worth of raw popcorn is worth as much as $3,000 to movie theaters."


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