The Competition and Markets Authority (CMA) was concerned that comparison web sites were making hotel rooms seem more popular than they actually are.

Expedia, Booking.com,  Hotels.com, ebookers and trivago have been investigated by the CMA over pressure selling and misleading discount claims.

“The CMA has taken enforcement action to bring to an end misleading sales tactics, hidden charges and other practices in the online hotel booking market,” said CMA Chairman Andrew Tyrie.

The CMA will now seek to make the rest of the sector follow the same rules as the six companies it has named.

The companies have all agreed to the following:-

• To make it clearer how hotels are graded, including whether hotels paying the ranking sites more have received a position higher up the list
• To not give a false impression of a hotel’s popularity to rush customers into making a booking. For example, when saying that other customers are looking at the same hotel as you, it should be made clear it they are searching for different dates. Some sites were also placing sold-out hotels within search results to put pressure on people to book more quickly. They have now committed not to do this
• To be clear about discounts and only promoting deals that are actually available at that time. The CMA found sites comparing a higher weekend room rate with a weekday rate or comparing the price of a luxury suite with a standard room
• To show charges such as taxes, booking or resort fees in the price

The companies have until 1 September 2019 to comply with the demands, otherwise they could be taken to court.

Compare the Market’s so-called most favoured nation contract clauses stopped home insurers from listing better prices elsewhere, in a bid to stop rivals winning home insurance customers.

But the practice also meant that home insurers were more likely to pay higher commission rates to comparison sites, potentially passing on the extra costs to customers.

“Our investigation has provisionally found that Compare the Market has broken the law by preventing home insurers from offering lower prices elsewhere. This could result in people paying higher premiums than they need to” said the CMA.

Well done the regulator. Comparison websites need to be fair and honest with their customers.

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