Trivago hit by ACCC
THE Australian Competition and Consumer Commission (ACCC) has launched Federal Court action against Trivago, accusing it of misleading TV advertising.
The corporate watchdog alleges that since at least Dec 2013, Trivago has presented its website as “an impartial and objective price comparison service” that would help consumers find the cheapest hotel prices.
Instead, the ACCC says Trivago prioritised advertisers who were willing to pay the highest level of fee per click.
Trivago is also accused of displaying false or misleading “strike-through” price comparisons, with offers for standard rooms often compared with offers for luxury rooms at the same hotel.
“This case highlights growing concerns the ACCC has in relation to comparison platforms, and on how algorithms present search results to consumers,” said ACCC chair Rod Sims.