Expedia Enters In Agreement With Companies, To Pay Up And Change “Sold Out” And “Unavailable” Listing On Its Platform
California hotels and other lodge businesses have scored a recent legal victory after a judge finally approves a class action lawsuit settlement between them and travel booking company Expedia.
The Expedia Bait And Switch Class Action Lawsuit was filed almost five years ago by disgruntled hotels and other accommodation businesses after Expedia allegedly used false “sold out” labels on their service in order to tip the scales to its other partner hotels and establishments.
Additionally, Expedia is accused of providing false contact information of non-partner establishments and label them as ‘unavailable’ in order to direct Expedia users to book a reservation with an Expedia-affiliated hotel instead.
It was alleged that Expedia did this to favor its partner hotels who paid a premium fee to be featured in the booking service.
Also, the company allegedly used the non-partner hotels’ images and information available on social media on their platform.
The main plaintiff, Buckeye Tree Lodge, and Sequoia Village Inn LLC shared that Expedia put on wrong information on their platform like unavailable and sold-out on its booking service to encourage their users to go with their partner hotels and establishments.
As of press time, the total amount Expedia will pay as compensation to end the legal battle against them is yet to be determined. Besides the monetary payment, the company agreed to change its policies concerning hotels not being listed as “unavailable” and “sold out.”
Meanwhile, the plaintiff’s counsel applauded the agreement and pointed out that the latest developments not only count as a victory for the plaintiff but also the members of the general public who use Expedia’s services to book their hotel reservations.
“Travelers will no longer be misled as to the availability of class member hotels that are not bookable on Expedia’s websites,” they said.
About the company
Expedia, formally known as the Expedia Group, is a Washington-based company that offers its services through its host of websites ranging from hotel reservations to car rentals. Founded in 1996, the company had recorded annual revenue of more than $12 billion in 2019.
Editor’s Note on Expedia Bait And Switch Settlement 2021:
This article gives you the latest update on the Expedia Bait And Switch Class Action Lawsuit that led to a settlement agreement between defendant Expedia and aggrieved hotel companies that were affected by the company’s false listing practices.
Case Name & No.: Buckeye Tree Lodge and Sequoia Village Inn LLC, et al. v. Expedia, Inc.; Case No. 3:16-cv-04721
Jurisdiction: United States District Court for the Northern District of California
Products/Services Involved: Expedia hotel booking service
Allegation(s): Expedia brazenly labels non-partner hotels in its platform as “sold out” and/or “unavailable” in order to persuade customers to avail the services of its affiliate partners instead.
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