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CMA launches enforcement action against hotel booking sites under consumer protection powers

United KingdomScotland
02/07/2018
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On 28 June 2018, the UK’s consumer and competition watchdog, the Competition and Markets Authority (“CMA”), announced that it was launching enforcement action against a number of hotel booking sites that it believes may be breaching consumer protection law.

The CMA opened an investigation into hotel booking sites in October 2017, following concerns that certain practices may breach consumer law. The CMA has identified concerns including the ranking of hotels in search results, pressure-selling tactics (such as the creation of false impressions of room availability), the fairness of discount claims and hidden charges.

In addition to its enforcement activity, the CMA has sent warning letters to a range of sites to review their practices and ensure they comply with consumer protection law.

Under its consumer protection law enforcement powers, the CMA can obtain binding commitments from companies to change their business practices or seek enforcement orders through the courts.

The CMA’s predecessor, the Office for Fair Trading, previously investigated the hotel booking sector in 2010 in relation to suspected breaches of competition law.

This latest enforcement action by the CMA further demonstrates the CMA’s increased level of activity in the consumer protection area. In the last year, it has commenced investigations, reviews and brought enforcement action relating to care homes, secondary ticketing, car hire, gambling and online dating.

If you would like to discuss the above issues, please contact Clive Gringras or Graeme Young.

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