Canadian online travel agency FlightHub has been hit with a hefty fine for making various misleading claims about prices and posting fake reviews.
After a lengthy investigation the Canadian Competition Bureau alleged it falsified reviews and misled customers about its services and hidden fees.
The CCB and FlightHub Group settled and the OTA must pay a $5 million penalty.
Two company directors agreed to penalties of $400,000 each as part of the settlement.
The company must remove online reviews that were posted on behalf of the company that were falsely attributed to genuine customers.
"We have pursued this case relentlessly to ensure that Canadians would be protected against any further deceptive marketing by FlightHub and its directors," said Matthew Boswell, Commissioner of Competition.
"Cracking down on deceptive marketing in the online marketplace is one of the Bureau’s top priorities."
Furthermore, FlightHub and its directors Matthew Keezer and Nicholas Hart must not make any more false or misleading claims about the price of flights, and fees associated with cancellations and rebooking.
FlightHub was granted creditor protection by the Quebec Superior Court and the CCB agreed the settlement after taking into consideration the company’s financial plight.
Written by Ray Montgomery, US Editor
