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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