8th Sep 10
Priceline and Expedia settle travel ad dispute
by Paul Russell
Online travel firms Expedia and hotels.com have reportedly settled a lawsuit with Priceline. The dispute was over the latter’s advertising practices but the terms of the settlement have not been released.
The lawsuit, which was filed in Washington, USA, in May last year, alleged that Priceline had pursued a misleading advertising campaign. Expedia claimed that TV and online adverts broadcast by Priceline were not clear enough when they claimed you could get half off prices quoted by Expedia and hotels.com.
In the case, the plaintiffs alleged that Priceline was being unfair as the “fundamentally different” rates on Expedia and hotels.com were being compared with Priceline’s ‘Name Your Own Price’ service, which sees customers bidding blind on unnamed hotels. The plaintiffs said the customers had no way of knowing that the prices quoted are ones they would have to bid for.
The online and television adverts featured former Star Trek actor William Shatyner in a role as the ‘Negotiator’. During the ads, the Negotiator claims you can have half off hotels with Priceline, while another actors looking at a computer screen says “that’s way less than Expedia.”
The commercials have now been changed and make no reference to Expedia, but say instead “that’s way less than the prices we found.” A disclaimer at the bottom of Priceline’s price-comparison chart also explains that the booked hotel is only revealed once sales have been completed. Expedia and hotels.com alleged, however, that even in the disclosure, the blind bidding system was not revealed.
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