AGCM

PRESS RELEASE

HALF A MILLION FINE AGAINST TRIPADVISOR - The Competition and Market Guarantor Authority, pursuant to feedback by the National Consumer Union, Federalberghi and some consumers, has ascertained the unfairness of the  commercial practice implemented since September 2011 and still underway by TripAdvisor LLC (a company incorporated according to US law which manages the www.tripadvisor.it website) and by TripAdvisor Italy S.r.l., whereupon it inflicted on the two operators, jointly and severally, an administrative penalty of  500.000 Euros.

By this decision, the Antitrust has interdicted the dissemination and continuation of a commercial practice consisting in the “dissemination of misleading information about the sources of reviews” published on the operators’ online database, by adopting monitoring tools and procedures that are inadequate in combating the phenomenon of false reviews. In particular, TripAdvisor publicizes its own activity through commercial claims which, in an especially assertive manner, emphasize the authentic and genuine character of the reviews, thereby inducing consumers to believe that the information is always reliable as being an expression of true tourist experiences.

In the Authority’s view, the disputed conduct violates articles 20, 21 and 22 of the Consumer Code, as it “is found to be apt to induce into error a large number of consumers as regards the nature and main characteristics of the product and to alter their economic behaviour”. The Antitrust’s intervention seeks to avoid the danger that consumers make their own economic choices, with regard to the services provided by the tourist structures searched on the site, by also relying on advertising information which does not correspond to reality. Within 90 days, the two companies shall have to communicate the initiatives they have embarked upon in compliance with the prohibition against further continuation of the unfair commercial practice. The administrative sanction shall have to be paid within 30 days from date of notification of the decision.

Rome, 22 December 2014