Canada News
Competition Bureau takes action on false or misleading marketing practices in online flight sales
The Bureau is investigating FlightHub’s representations for flight-related services, such as seat selection and flight cancellation, which result in hidden fees. (File Photo: FlightHub/Facebook)
Today, the Competition Bureau took action to protect consumers from false or misleading representations that result in hidden fees being charged for flights, while it continues its investigation into the marketing practices of FlightHub Group Inc. The Bureau entered into a temporary consent agreement with FlightHub that prohibits it from using false or misleading marketing practices on flighthub.com and justfly.com.
The Bureau is investigating FlightHub’s representations for flight-related services, such as seat selection and flight cancellation, which result in hidden fees. It appears that FlightHub has generated millions of dollars in revenue from these fees. The Bureau is also investigating, among other things, allegations that the price of flights sometimes increases after consumers have selected their flights.
The investigation is ongoing.
The Bureau strongly encourages consumers who believe they have been misled while shopping for flights online to file a complaint and provide as much information as possible.
Canada’s digital economy is at a critical juncture and consumer trust in the online marketplace is essential to drive its growth. The Bureau will continue to seek out, investigate and halt deceptive marketing and anti-competitive practices in the online marketplace.
Quotes
“Early in my term as Commissioner of Competition, I made a commitment that the Bureau would use all the tools at its disposal to address deceptive marketing practices in the online marketplace. Today’s agreement protects consumers from harm while the Bureau carries out its investigation.”
-Matthew Boswell
Commissioner of Competition
Quick facts
- The Temporary Consent Agreement will remain in effect until the Bureau’s investigation is resolved by an agreement with FlightHub or a decision of the Competition Tribunal.
- The Bureau has reviewed thousands of consumer complaints about marketing practices on flighthub.com and justfly.com.
- Earlier this year, the Bureau executed search warrants at the company’s headquarters and seized relevant records.
- FlightHub is cooperating with the Bureau’s investigation.
