Online travel agency caught purposefully misleading customers
An investigation into a Canadian company has uncovered malfeasance including false reviews and hidden fees.
After a thorough investigation, the Canadian Competition Bureau (CCB) determined FlightHub, a Canadian online travel agency, falsified reviews promoting its services, and made numerous false or misleading claims about its prices and other flight-booking services.
As a result of the investigation, the CCB has issued a $5 million penalty to FlightHub Group Inc., and two company directors have agreed to penalties of $400,000 each as part of a settlement registered today with the Competition Tribunal.
Additionally, as part of the settlement, FlightHub and directors Matthew Keezer and Nicholas Hart are prohibited from making any further false or misleading claims, which includes claims about the price of flights, as well as the cost and terms associated with cancellations, rebooking, and seat selection.
Further, the company is also required to remove any online reviews of its services that were posted by or on behalf of the company but appeared to be from genuine customers.
“We have pursued this case relentlessly to ensure that Canadians would be protected against any further deceptive marketing by FlightHub and its directors," Matthew Boswell, commissioner of competition, said in a news release.
"Cracking down on deceptive marketing in the online marketplace is one of the Bureau’s top priorities, and we’ll continue to do everything in our power to stop it," he continued.
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