Priceline to face FTC action over deceptive hotel ads, sources say
BKNG•The FTC is preparing action against Booking Holdings over online ads that appear to send consumers to hotel websites but instead direct them to third-party booking sites, sources said. Potential penalties could exceed $500 million.
1. FTC weighs action
The FTC is considering whether Guest Reservations websites violate a rule against impersonating other businesses and whether they breach requirements related to fees. The sites often charge higher room prices and fees, one source said.
2. Booking disclosed talks
Booking Holdings said in August that the FTC was considering suing Priceline and an affiliate over disclosures, fees, customer support and billing practices, and that it was in talks with the agency to resolve the matter. The FTC confirmed its investigation. Booking shares fell 1.4% after the report and were last down about 0.2%.
3. Consumer complaints
Guest Reservations has received more than 1,000 complaints to the Better Business Bureau, including reports from consumers who believed they had booked directly with hotels and later faced surprise fees. Booking supplies hotel room inventory to Guest Reservations through Priceline Partner Solutions, according to an ongoing lawsuit filed by San Francisco.
