Priceline owner reportedly faces FTC action over affiliate's hotel ads
BKNG•The FTC is preparing to take action against Booking Holdings over ads linked to its affiliate Guest Reservations, two sources said. Potential penalties could exceed $500 million, one source said.
1. FTC scrutiny
The FTC is investigating Booking Holdings’ relationship with Guest Reservations, a third-party website that advertises specific hotels but may direct consumers to a third-party booking site where they are charged extra, two sources familiar with the matter said. The agency is considering whether the sites violate a rule against impersonating other businesses and whether other potential violations involve fees.
2. Company disclosure
Booking Holdings disclosed in August that the FTC was considering suing Priceline and an affiliate over disclosures, fees, customer support and billing practices. The company said it was in talks with the agency to resolve the matter. An FTC spokesperson confirmed the investigation, while a Priceline spokesperson declined to comment.
3. Consumer complaints
Guest Reservations has received more than 1,000 consumer complaints to the Better Business Bureau, many from people who said they thought they were booking directly with hotels. The complaints included surprise fees and unresponsive customer service. Booking provides hotel inventory to Guest Reservations through Priceline Partner Solutions, according to an ongoing lawsuit filed by San Francisco.
