Trivago faces millions in ACCC fines after admitting misleading conduct
Hotel comparison site Trivago is facing millions of dollars in fines after admitting misleading conduct in its prosecution by the ACCC.
The case, which was launched by the ACCC in August, alleged the European based company’s 2017 advertising campaign gave the impression users would get the best hotel deals from its aggregation service, when in reality many of the highlighted prices were not actually the best deal.
At the time of launching the case, ACCC chair Rod Sims said: “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.”
In October, Sims warned digital platforms including Trivago about their use of algorithmic ‘black boxes’ and overreaching terms and conditions as the ACCC continues its inquiry into the digital economy.
The ACCC’s inquiry into digital platforms is due to hand down its interim report in coming weeks.
The Daily Telegraph has reported Trivago’s last week admitted in court documents that the site led consumers to ‘form an erroneous belief’ the results page contained the lowest prices.
With this admission, Trivago could be liable for up to $10m in fines for each offence under the Australian Consumer Law.
Mumbrella has contacted Trivago and the ACCC for comment.
In June, Trivago said in a filing to the US Securities and Exchange Commission that: “The Australian Competition and Consumer Commission, or ACCC, has requested information and documents from us relating to our advertisements in Australia concerning the hotel prices available on our Australian site and our strike-through pricing practice, which is the display adjacent to the price quote in the top position in our search results of a higher price that is crossed out.
“We submitted this information to the ACCC in February 2018, and plan to provide certain related documents in March 2018. The matter is in its early stages, and we are unable to estimate its potential effect on our financial position and results of operations.”
Rightly so.
Can we add a fine for utterly terrible advertising too?
User ID not verified.
I booked into The Shalimar Hotel in Mumbai and because of the advertising by Trivago on my computer I cancelled and went with Treebo Anam International. Big,Big mistake it cost 50% more, I had plastic bucket and jug for the shower, The breakfast was inedible and the room was cleaned 3 times in 12 days the photos on my F/B page show the slum area and view from the hotel window. The noise was unbearable and went on most of the night Extremely unpleasant and expensive mistaken booking. Never again GS
User ID not verified.
how dare you be mean to my beautiful Trivago girl
User ID not verified.
You don’t have to be Einstein to question the motives behind the probable fortune Trivago has spent over the past two weeks of the Australian tennis open.
Despite the ACCC taking Trivago to task for misleading the Australian public in advertising last year, Trivago have in their advertising over the two weeks of the Australian Tennis Open walked a fine line in an attempt to mislead the Australian public that, when you book with Trivago you get a better price over that of the local hotel or resort operator.
Just check out some of the stills here from their advertising where the hotel price is higher that a OTA. http://www.portdouglasdirect.c.....fine-line/
Misleading the public and achieving that goal means that accommodation providers are deprived of up to 20% of their income yet all sit back in Australian tourism and do nothing
User ID not verified.