FTC Threatens $500M+ Action Against Priceline Over Hidden Hotel Fees
BKNG is trading near its 52-week low of $150.14 (4.2% above the low).
Summary
The FTC is preparing to sue Booking Holdings' Priceline.com and its affiliate Guest Reservations over deceptive practices involving hidden fees that can more than double room costs. The potential penalty exceeds $500M, a material risk for a company already trading near its 52-week low. This follows the EU General Court's September rejection of Booking's appeal and a nine-week losing streak. The San Francisco City Attorney has also sued Guest Reservations, alleging Booking provides substantial assistance to the deceptive scheme. The company maintains it discloses fees prior to purchase, but the FTC claims fees are buried in taxes and other charges.
At the time of this announcement, BKNG was trading at $156.43 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $117.5B. The 52-week trading range was $150.14 to $220.81. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.