Save
Trivago a no-go for cheapest hotel
Heavily advertised hotel comparison site Trivago has come under fire from the consumer watchdog after it was found to be misleading consumers about providing them with the cheapest hotel room rates.
Trivago a no-go for cheapest hotel
Heavily advertised hotel comparison site Trivago has come under fire from the consumer watchdog after it was found to be misleading consumers about providing them with the cheapest hotel room rates.
A statement has outlined the Federal Court’s finding that the comparison site had breached Australian Consumer Law when it misled consumers from December 2016 by “representing its website would quickly and easily help users identify the cheapest rates available for a given hotel”.
Instead, Trivago was using an algorithm that placed significant weight on which online hotel booking site paid Trivago the highest cost-per-click fee to determine website rankings – often not highlighting the cheapest rates for consumers.
ACCC chair Rod Sims said that Trivago’s hotel room rate rankings “were based primarily on which online hotel booking sites were willing to pay Trivago the most”.
“By prominently displaying a hotel offer in ‘top position’ on its website, Trivago represented that the offer was either the cheapest available offer or had some other extra feature that made it the best offer when this was often not the case,” Mr Sims explained.
Trivago was also found to be using strike-through prices or text in different colours that gave consumers “a false impression of savings”.
Such offers were usually comparing standard rooms with luxury rooms at the same hotel.
Mr Sims said the consumer watchdog brought the case before the court because it considered that “Trivago’s conduct was particularly egregious”.
“Many consumers may have been tricked by the price displays into thinking they were getting great discounts.”
“In fact, Trivago wasn’t comparing apples with apples when it came to room type for these room rate comparisons,” he continued.
Until 2 July 2018, Trivago was also found to have been misleading customers to believe that the website “provided an impartial, objective and transparent price comparison for hotel room rates”.
About the author
About the author
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more
Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more
Expenses
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers. ...Read more
Expenses
The financial products giving Australians the most grief during COVID-19
The Australian Financial Complaints Authority (AFCA) has received 7,420 complaints about financial products since the onset of the pandemic. ...Read more
Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more
Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more
Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more
Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more
Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more
Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more
Expenses
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers. ...Read more
Expenses
The financial products giving Australians the most grief during COVID-19
The Australian Financial Complaints Authority (AFCA) has received 7,420 complaints about financial products since the onset of the pandemic. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
