After an Australian Competition and Consumer Commission investigation, online travel company Expedia, Inc. will amend the wording and format of a hotel accommodation availability website.
Expedia is an American based company which operates online travel websites including www.expedia.com.au.
"The ACCC conducted inquiries following a complaint from a Sydney boutique hotel which alleged that Expedia was misleading internet users into believing that accommodation, when available, could be booked through the Expedia website," ACCC Chairman, Mr Graeme Samuel, said today.
"The allegations suggested that Expedia was listing accommodation on its website when there was no business relationship between the companies.
"The conduct was narrowed to a statement on the Expedia website which was generated after a booking was attempted which stated that no room was available. In a majority of cases room was available but not through the Expedia website.
"The ACCC believed Expedia's conduct may have contravened sections 52 and 53(d) of the Trade Practices Act 1974. Section 52 prohibits misleading and deceptive conduct and section 53(d) provides that a company must not represent that it has a sponsorship, approval or affiliation which it does not have.
"The ACCC raised its concerns with Expedia. Expedia cooperated fully and following discussions agreed, without admitting its conduct was in breach of the Act, to implement the following changes:
- amend the wording of the availability message for hotels with no availability on the Expedia website
- remove the duplicate availability message for hotels with no availability on the Expedia website, and
- deactivate the availability message and infosite for all Australian hotels which it does not have, or becomes aware it does not have, any business relationship or affiliation.
"With the internet being used increasingly as the way to buy goods and services such as travel and accommodation, the ACCC is focussed on ensuring that internet advertising and marketing is not used to mislead or deceive consumers.
"This matter highlights the need for businesses to remain vigilant when advertising on the internet. The ACCC will continue to keep a close eye on the online travel industry to ensure internet marketing practices comply with the Act."