Priceline to face FTC action over deceptive hotel ads, sources say
BKNG•The FTC is preparing action against Booking Holdings over online ads that may steer travelers to third-party hotel booking sites, two sources said. Potential penalties could exceed $500 million, one source said.
1. Potential FTC action
The FTC is gearing up to take action against Booking Holdings, owner of Priceline, over ads that appear to direct consumers to hotel websites but instead send them to third-party sites, two sources familiar with the matter said. The agency is examining Booking’s relationship with Guest Reservations and whether its sites violate rules against impersonating other businesses or other rules related to fees. One source said potential penalties could top $500 million.
2. Company and agency statements
Booking disclosed in August that the FTC was considering suing Priceline and an affiliate over disclosures, fees, customer support and billing practices, and said it was in talks with the agency to resolve the matter. The FTC confirmed its investigation. Booking reported $5.4 billion in net profit last year.
3. Consumer complaints
Guest Reservations has received more than 1,000 consumer complaints to the Better Business Bureau, including reports of surprise fees and customers believing they were booking directly with hotels. Booking supplies hotel room inventory to Guest Reservations through Priceline Partner Solutions, according to a lawsuit filed by San Francisco.
