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Federal Court finds that Trivago misled consumers about hotel room rates

On the 21 January 2020 The Federal Court has found Trivago breached the Australian Consumer Law when it made misleading representations about hotel room rates both on its website and television advertising. The Court ruled that from at least December 2016, Trivago misled consumers by representing its website would quickly and easily help users identify the cheapest rates available for a given hotel. In fact, Trivago used an algorithm which placed significant weight on which online hotel booking site paid Trivago the highest cost-per-click fee in determining its website rankings and often did not highlight the cheapest rates for consumers. 

 

The Accommodation Association welcomed the Federal Court decision in our media release of the 21 January. The verdict not only sent a strong message on misleading and deceptive conduct but clearly demonstrated that the ACCC is prepared to take strong enforcement action when online travel agents are found in breach of Australian Consumer Law.

 

The ACCC has sought orders for penalties, declarations, injunctions and costs. The Association continues to liaise with the ACCC on OTA’s and online rate parity and other noncompetitive actions.

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