9 / 28
2018
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2019 HOTREC ANNUAL REPORT
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9
The digital era has led to a paradigm shift impacting all sectors of
society. Tourism and hospitality services have not escaped this digital
transformation, and were even among the pioneer experiencing it. This
rapid transformation also came with the diffusion of new misleading
practices online impacting both consumers and businesses. HOTREC
therefore promoted and obtained new transparency requirements which
should restore trust in online markets, thanks to a major revision of EU
consumer law.
Rankings, reviews and price promotions to become more
transparent online
As advocated by HOTREC, EU institutions agreed on new transparency
requirements for online platforms and review sites, as part of the EU
proposal for a better enforcement and modernisation of EU consumer law
recently adopted by the European Parliament. These new requirements
will eliminate some widespread unfair practices affecting both businesses
and consumers.
In particular, the revised EU consumer law will:
•
Ban hidden paid-placements on rankings (i.e. a practice from online
platforms to discreetly advertise some products through higher
rankings without informing consumers accordingly);
•
Provide guarantee that price discounts advertised on online platforms
are not fake (as some platforms often promote ‘discounts’ which do
not exist);
•
Require online platforms and online review sites to inform consumers
about the main parameters used to determine rankings of products;
•
Preventmanipulationof online reviews throughmisleadingstatements
about their authenticity.
A renewed transparency for the collaborative economy
which will bring a level-playing field
The revision of the EU consumer law framework will also provide
additional transparency for consumers using collaborative economy
platforms. According to the new provisions, which were actively promoted
by HOTREC, online platforms will be required to inform consumers
if a product is sold by a trader or an individual and consequently if the
transaction is protected by consumer law. It will prevent rogue traders from
using the anonymity of collaborative economy platforms to circumvent
their legal obligations and will contribute to restore a level-playing field on
the tourism accommodation market.
HOTREC’s advocacy activities have therefore resulted in a new EU
consumer law framework which better protects consumers and hospitality
businesses, and boosts consumer trust in tourism services.
Protecting consumers and businesses
from misleading practices online through
a revision of EU consumer law
HOTREC actively promoted
new EU law requirements
to protect both consumers
and businesses and ensure
fairness and transparency in
online markets