Breaking: Booking.com receives record fine in Hungary

The Hungarian Competition Authority (GVH) has imposed a record fine of HUF 382.5 million (EUR 977,000) on Booking.com for failing to fully comply with its obligations to cease previous legal violations. This conclusion was reached following a recent follow-up investigation. Despite reducing the frequency of certain urgent messages, the company continued to employ psychological pressure tactics on consumers and extended misleading claims about free cancellations until April 2024.

Booking.com’s record fine

Booking.com just received a record fine from the Hungarian Competition Authority (GVH). Photo: depositphotos.com

GVH‘s scrutiny of the accommodation website dates back to 2018 when it initiated proceedings against the company for several unfair commercial practices, Index reports. Key findings from the investigation included:

Misleading free cancellation promises: Booking.com advertised “free cancellations” for accommodations, but consumers often found that this option was time-limited and more expensive compared to non-refundable bookings.
Psychological pressure tactics: The company used urgent notifications that falsely implied high demand and limited availability, thereby pressuring consumers into making quicker decisions. Messages such as “Only one room left” or “Booked 5 times today” were found to create psychological pressure.
Inaccurate payment option information: The website failed to clearly present the options for payments using SZÉP cards, a popular benefit card in Hungary.

As a result of these findings, in April 2020, GVH fined Booking.com HUF 2.5 billion (EUR 6.4 million) and mandated that the company cease these practices and provide proof of compliance. Although the accommodation website eventually adjusted its practices to meet GVH’s expectations, these adjustments were delayed, leading to further penalties.

Urgent messages were reduced, but banned messages were still sent

The recent follow-up investigation by GVH revealed that while Booking.com had reduced the use of some urgent messages, it continued to employ messages that were banned, such as “Similar options unavailable” and “Few rooms left for selected dates”.

These messages persisted until 26 February 2024, indicating that Booking.com had not fully abandoned its pressuring tactics. Additionally, the company maintained misleading claims about free cancellations until 26 April 2024 by phasing out cheaper, non-refundable options, disadvantaging Hungarian consumers.

Cheaper options introduced

In the final stages of the investigation, Booking.com modified its commercial practices to align with GVH’s requirements and protect consumer interests. This included reintroducing cheaper, non-refundable accommodation options for Hungarian users.

GVH emphasised that the record HUF 382.5 million fine reflects the seriousness of the violations and serves as a warning to other companies about the importance of full compliance with regulatory obligations. GVH considered that while the accommodation site waived its right to appeal, it did not acknowledge its violations. However, the company did cease the offending practices in the final phase of the investigation.

GVH has stressed that businesses must precisely and completely fulfil the obligations set forth in regulatory decisions. Incomplete compliance or failure to provide proof of compliance can result in substantial fines. Recently, GVH has focused on the online accommodation sector, responding to numerous market signals and complaints, particularly concerning Booking.com’s practices.

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Featured image: depositphotos.com

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1 Comment

Rightful - Deserving : says:

16/07/2024 at 08:55

I have used this platform prior, when this matter was a major subject in DNH.
We are constant users of booking.com – Level 1.
What ANNOYS me with them is if you have a NEED to speak with a HUMAN being – it is a near IMPOSSIBILITY to achieve.
The personal matter we are still in dispute with them is in relation to an apartment we booked in May 2024 – Strasbourg, France.
Arrival at the apartment – La terrasse Desaix – from photo-graphs description of apartment, size of apartment just FABRICATED.
Booking was for 3 nights. We stayed 3 hours left notified owner of our DISATISFACTION – then commenced my COMPLAINTS to booking.com – which have REMAINED in my opinion still in an un-answered position.
We booked into another apartment of our own undertaking, which cost us as has the “pre-paid’ money paid to booking.com for the Strasbourg apartment – which I still am waiting for COMPENSATION.
booking.com still are allowing photographs of this apartment, description of the apartment facilities as the front page of this Strasbourg apartment – after mt numerous e-mails, inclusive of REAL photo-graphs of what this property factually is.
booking.com – have not acted on my behalf taken the side of there “account” – from commission earned from the mentioned property, and just passed me on by as though my COMPLAINT was of no validness importance to them being booking.com
Disgusting – and booking.com what to get there act together in LISTENING to clients – complaints and “other” – making contact with them a SIMPLER procedure – that assists people like us NOT getting SCREWED over by clients of booking.com who ADVERTISE with FALSE information.
We got SCREWED and booking.com FAILED dismally in there “Duty of Care” to us – hiding behind “disclaimer’s” – that gives ways OUT – through Legal procedure – in the EVENT of CONFLICTS with those who book through them and with THEIR client(s) – the places – we BOOK.
The “Hand of the Law” the Hungarian Judicial system RIGHTLY has judged this matter – and the fine handed down to and on booking.com – the “Punishment” does fit the CRIME.