Weekend Gold Coast Bulletin

Trivago fined $44.7m

- LISA ALLEN AND DAVID ROSS

Expedia-owned hotel booking platform Trivago has been slapped with a $44.7m fine in the Federal Court after the competitio­n regulator took aim at it for misreprese­nting the price of hotel rooms.

The Australian Competitio­n & Consumer Commission had taken action against Trivago alleging it had breached consumer law by telling consumers it would get them the best deal on room rates, when in fact it wasn’t.

Federal Court judge Mark

Moshinsky said Trivago’s contravent­ions of consumer law were “extremely serious” and amounted to “highly misleading” conduct.

Senior travel executives were surprised by the size of the fine given the earnings Trivago pocketed during the breach.

Flight Centre managing director Graham Turner said it was unacceptab­le behaviour. “They were promising people the best deal, but it’s really the best deal for them, not the customer,” he said. “It depends on what they have admitted but the $44.7m fine does seem rather steep.”

Accommodat­ion Associatio­n CEO Richard Munro said his associatio­n was continuall­y alerting the ACCC to exploitati­ve practices.

“We want the ACCC to now cast their net wider and review price parity rules where similar large, overseas-based multinatio­nal corporatio­ns threaten Australian accommodat­ion providers with exclusion if the accommodat­ion provider offers a better rate online,” Mr Munro said.

“Australian travel consumers deserve access to the best available rates, and the only way to guarantee that outcome is to book directly with Australian accommodat­ion operators or though your local travel business.”

Justice Moshinsky found Trivago’s television advertisin­g campaign, through which the company spruiked its purported potential to land good deals on hotel rooms, was particular­ly egregious.

He found Trivago’s “strikethro­ugh price” comparison­s created the false impression of savings on rooms.

Trivago placed significan­t weight on which hotels paid Trivago the highest cost-perclick fee in ranking ads for rooms.

Justice Moshinsky found the top position displayed on Trivago’s websites was more expensive in 66.8 per cent of listings. He added that 93 per cent of clicks on Trivago’s website went to those top position offers, noting “a large number of consumers” were affected by the misleading conduct.

Trivago pulled in almost $92m from these non-cheapest top position offers out of its total $178m income in Australia over the period.

The court found consumers paid $38m more for their hotel rooms due to Trivago’s conduct between 2016 to 2018.

The fine comes after the ACCC took aim at Trivago in 2018, with the Federal Court finding in 2020 the company had breached consumer laws on multiple occasions.

In a statement, Trivago said that it had changed its website so as to comply with the court’s decision. “We look forward to putting this behind us,” the company said on Friday.

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