One of the world’s biggest hotel booking websites, Trivago, has admitted to misleading its customers.
The hotel booking site will face millions of dollars in fines after being caught out comparing rates from standard rooms with premium suites and advertising the difference as savings.
In a statement on the ACCC website, the watchdog said that Trivago’s practice pointed customers towards advertisers who were paying the highest cost per click, such as Booking.com and Expedia.
Earlier this year, the ACCC took Trivago to the Federal Court, alleging that the site breached Australian Consumer Law by making misleading claims about pricing in its television advertising campaign and on its website.
The watchdog took exception to Trivago’s TV and web advertisements, on which the hotel price comparison service claims to be impartial and objective, allowing customers to find the cheapest prices for rooms.
With the latest admission, Trivago could face fines of $10 million or more depending on how many people have been affected.
Do you use Trivago to book accommodation? Do you trust online travel booking sites?
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