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FTC weighs action against Booking Holdings over deceptive hotel ads
The FTC is considering whether third-party Guest Reservations sites impersonate other businesses, and the case could involve more than $500 million in potential penalties.
The US Federal Trade Commission is preparing action related to online ads associated with Booking Holdings, the owner of Priceline.com, two sources familiar with the matter told Reuters.
The ads are described as appearing to send consumers to a hotel’s site, but instead directing them to a third-party website where consumers are often charged extra.
Reuters reports the FTC has looked at Booking’s relationship with Guest Reservations, which advertises stays at specific hotels but frequently charges higher prices and fees.
The agency is assessing whether Guest Reservations’ websites violate a rule against impersonating other businesses, along with other possible violations involving fees, and one source said potential penalties could exceed $500 million.