ACCC takes Trivago to court over misleading TV ads
The Australian Competition and Consumer Commission is taking hotel comparison website Trivago to court over “misleading hotel pricing representations” in its TV and website advertising.
Trivago ran television commercials which positioned the company as an impartial comparison website offering objective price comparisons. In reality, Trivago prioritised advertisers who paid the most per click.
The “misleading” television advertisement.
The ACCC alleges Trivago gave the impression to users that they are getting the best hotel deals from its aggregation process, which highlights one ‘best’ price, when in reality many of the highlighted prices were not actually the best deal.
Rod Sims, chair of the ACCC, said in a statement: “Based on Trivago’s highlighted price display on its website, we allege that consumers may have formed the incorrect impression that Trivago’s highlighted deals were the best price they could get at a particular hotel, when that was not the case. Trivago based its rankings on the highest cost per click it would receive from its advertisers.
“We allege that because of the design of Trivago’s website and representations made, consumers were denied a genuine choice about choosing a hotel deal, by making choices based on this misleading impression created by the Trivago website.”
As well as the initial misleading comparison claims, the ACCC alleges Trivago doesn’t compare the same hotel rooms, instead compares a standard room with a luxury room at the same hotel, which creates a false impression of savings to users.
“We are very concerned that such platforms convey an impression that their services are designed to benefit consumers, when in fact listings are based on which supplier pays the most to the platform,” Sims added.
A spokesperson from Trivago said in a statement to Mumbrella: “We agree with the ACCC’s earlier public statement that ‘comparator websites can assist consumers to make more informed purchasing decisions when comparing what are often quite complex products, and can promote healthy competition by assisting small or new service providers to compete more effectively.’
“We are disappointed by the action the ACCC has chosen to take in relation to Trivago and will vigorously defend our interests.”
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Please look at Hotels Combined ad as the do a direct comparison versus Mr Convincing which are a fictitious business – non existent.
They claim their prices are better than Mr Comvincing and this is misleading advertising.
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Trivago, Hotels Combined, they are all liars, but what else does one search when trying to find a hotel?
Is there a real hotel search engine that doesn’t lie.
I would like to know if there is such a website that does not lie about specials.
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These hotel sites such as Trivago, Hotel Combined and others, purport to obtain the best prices for hotel rooms however in some of the prices listed there are occasions where there are some prices quoted that are dearer than the actual prices quoted by the hotel in question.
How does this come about, false advertising ? and why should you pay more on these sites than than you would by going direct to the hotel in question ?
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They are still at it. Hotels Combined are still using Mr Convincing (fictitious web site) as a comparison. Would you believe how they could get away with comparing prices with a made up site. I am sick of seeing this ad and get hostile when they keep up this false ad.
Are there any agencies that prevent advertising on such a magnitude to continue?
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I am so sick of seeing these lying ads on tv, it seems they come on every few minutes, I am at screaming point, I have no interest in them what so ever, I just wish they would go away.
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Excellent true input from all prior 5 submissions! Good on the ACCC for finally taking direct court action against these global oligopolies. There is no question of unfair and dishonest ads in both creating fake competitors (Mr. Convincing) or falsely comparing different room types. These oligopolies require all listed providers offer a “parity rate” (i.e. no rate lower elsewhere), so how could there be any rate differences? The ACCC and Oz Parliament are both overdue in not only banning parity rates (as European countries have done 4 years ago), but kowtowed to the OTAs and jointly preclude Oz accommodation providers even advertising a lower rate on their direct website! Until then we continue to pay the consumer hidden 12% commission for their mere automated booking to either the Netherlands (Booking.com) or Expedia (U.S.) further weakening the subservient Oz economy.
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The Hotels,Combined ad is misleading. I can’t find the Mr Convincing site anywhere
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I agree and the stupid ad is still running, with some stuffed animal that is talking . Not sure what this animal is to be honest.
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The frequency of their advertising on SKY is beyond belief, dont get me wrong I support advertising as a necessary marketing tool BUT in a 4 week period on SKY i have been exposed to over 500 adds. Now on any measure that is excessive and seriously counter productive.
The harm they do to their Brand is considerable. And the annoyance level experienced by regular viewers is obvious
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