FTC Targets Booking Holdings Over Deceptive Hotel Ads

The Federal Trade Commission is preparing legal action against Booking Holdings Inc. over deceptive online advertising practices. The investigation centers on the company's relationship with Guest Reservations, a third-party site that allegedly impersonates hotels to lure consumers into bookings characterized by higher prices and surprise fees.

Potential penalties for the case could exceed $500 million. This action follows a disclosure by Booking Holdings in August that the agency was considering a lawsuit against its subsidiary, Priceline.com, and an affiliate regarding billing and disclosure practices. Guest Reservations has already been the subject of more than 1,000 complaints filed through the Better Business Bureau.

FTC Chairman Andrew Ferguson stated the agency is targeting misleading practices that increase the cost of living for Americans. The probe also examines the role of advertising platforms, including Alphabet's Google, which allow these deceptive sites to appear above official hotel pages in search results. Booking Holdings is currently in talks with the agency to resolve the matter.