Consumer watchdog to turn the screws on hotels and online aggregators making false claims

Mint

a day ago

New Delhi: Online travel aggregators often get away with blaming hotels for misleading consumers, but they may not be able to for too long. If the hotel room you booked via a travel aggregator falls short of what was promised online, India's consumer protection watchdog wants to hold the booking platform accountable.
While properties making misleading claims would have to be delisted from platforms such as MakeMyTrip, EaseMyTrip, and Yatra, the Central Consumer Protection Authority also plans to fix responsibility on aggregators that fail to vet property claims or don't act on consumer complaints.
'The CCPA has come to know through various social media posts that several online platforms are failing to verify the authenticity of claims made by property owners and are listing properties without proper checks. This constitutes an unfair trade practice under the Consumer Protection Act," an official involved in CCPA's process told Mint.
CCPA plans to review hotel listings and claims made by aggregators as well as analyse complaints on social media platforms or the National Consumer Helpline to identify patterns of misleading claims and recurring service deficiencies, the official said.
The consumer protection watchdog also plans to hold meetings with booking aggregators and representatives from the hotel industry to assess how properties are vetted and the redressal mechanisms available for consumers, said a second official.
CCPA is likely to issue an advisory in consultation with the industry to protect the interests of consumers, this official added.
Queries emailed to the spokespersons of MakeMyTrip, EaseMyTrip, Yatra, Goibibo, Agoda, and Ixigo on 14 July, and to the consumer affairs ministry on 21 July remained unanswered.
A matter of trust
CCPA's move is aimed at ensuring greater accountability and transparency on online travel and accommodation booking platforms, which have become the go-to tools for domestic and international travellers.
'These platforms are trusted by users who often pay in advance, but when the promised services are not delivered, consumers find themselves at the mercy of the aggregators to secure refunds. This process is neither fair nor consumer-friendly," said Ashim Sanyal, chief executive of Consumer Voice, a nonprofit consumer protection group.
Hotel industry experts are also on board with CCPA's plans, saying unethical listings on online aggregators were damaging traveler trust and affecting genuine hoteliers.
Ved Khanna, board member, Federation of Associations in Indian Tourism and Hospitality, said a recurring concern was listings on digital booking platforms falsely showing substandard properties as 3-star or 4-star hotels.
'This not only damages traveler trust but also affects genuine hoteliers and licensed operators in the region. Tourism bodies are urging the platforms to be accountable and strictly verify listings, particularly in sensitive destinations like Kashmir, where a bad experience could disproportionately amplify apprehensions," said Khanna.
India's online travel market—which includes online travel agencies, direct bookings, and other digital travel services—is projected to grow to $124 billion by 2033 from $51 billion in 2024, according to market research firm IMARC.
What CCPA can do
The Central Consumer Protection Authority, India's newest regulator, has been actively taking on companies across sectors, including e-commerce giants, cab aggregators, coaching centres, and even celebrities and influencers for misleading consumers.
Mint reported on 10 March 2024 that CCPA had facilitated refunds amounting to ₹1,453 crore for air tickets booked during the covid-19 pandemic. The refunds were secured from travel aggregators including Yatra, MakeMyTrip, ClearTrip, EaseMyTrip, Ixigo, and Thomas Cook.
The regulator can impose penalties of up to ₹50 lakh on entities found making misleading advertisements and false claims or refusing to refund payments to consumers, which are defined as unfair trade practices under Section 2(47) of the Consumer Protection Act, 2019.
CCPA is also empowered to initiate class action proceedings against offenders on behalf of a group of affected consumers, as per Section 18(2)(b) of the Consumer Protection Act. The authority can also file complaints before the Consumer Commission in cases involving unfair trade practices, misleading advertisements, or violations of consumer rights.