FTC prepares action against Booking Holdings over Guest Reservations ads

The U.S. Federal Trade Commission is preparing to take action against Booking Holdings for ads that direct consumers to Guest Reservations, a third‑party website that often charges extra fees, and is investigating the company’s relationship with that site.

The case could involve more than $500 million in potential penalties; Booking shares slipped 1.4% after the report and ended the day down 1.1%, while the company reported $5.4 billion in net profit last year, and Guest Reservations has received over 1,000 consumer complaints to the Better Business Bureau about surprise fees and unresponsive service.

The FTC is also examining misleading ad practices, including ads that lead to sites appearing to be run by hotels, and Booking supplies hotel room inventory to Guest Reservations through Priceline Partner Solutions.