Are Online Price Comparison Websites Misleading?

 

We often go to comparison websites to find the best deal for a hotel, holiday, home loan, car insurance, health insurance etc. and rely on the site to make a genuine recommendation as to the product that represents the best value for us. But can you really rely on them?

In January 2020 the Federal Court of Australia in the case of ACCC v Trivago NV [2020] FCA 16 decided that the well known travel accommodation comparison site, Trivago, had contravened the Australian Consumer Law by presenting listings of hotel room prices so people would be drawn to click on the price given the most prominence suggesting it was the best price for that room. However, over 66% of the time the most prominent hotel room price was in fact not the cheapest price on offer on the site.

So, if you are looking for a totally impartial, objective and transparent price comparison website, be very careful. One suspects that there are always hidden traps designed to lead you in a certain direction that may not be to your overall benefit.

March 2020