ARTICLE
23 January 2020

Trivago found guilty of misleading consumers

HL
HHG Legal Group

Contributor

HHG Legal Group has been serving Western Australians for over 100 years. With a large team across five offices, we offer top-notch legal advice and representation, exceeding expectations for all clients.
The Federal Court of Australia found that the online travel site Trivago misled Australian consumers about hotel rates.
Australia Consumer Protection
To print this article, all you need is to be registered or login on Mondaq.com.

The popular online travel site Trivago misled Australian consumers about hotel rates, the Federal Court of Australia has found. In proceedings brought by the Australian consumer watchdog, it was alleged that Trivago engaged in misleading conduct and made false representations to consumers.

The ACCC argued that Trivago engaged in conduct which, among other things, led consumers to believe that the Trivago website provided an impartial, objective and transparent price comparison which would enable the consumer to quickly and easily identify the cheapest available offer for a particular (or the exact same) room at a particular hotel, which was found to be untrue.

The Court found that Trivago had engaged in the conduct alleged, and had contravened sections 18, 29 and 34 of the Australian Consumer Law. Penalties will be decided by the Court at a later date. The penalties for contraventions of the Australian Consumer Law can be substantial. It will be interesting to see how the remainder of this matter plays out, and whether it leads to any changes in the way that online comparison websites operate.

The ACCC has previously indicated it will continue to target comparison websites which mislead consumers into thinking they are getting a good deal, without properly disclosing the commissions they receive from consumer clicks.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More