Hotel firms warned over misleading ads after AI-driven investigation

Travelodge, Accor, Hilton and Booking.com were warned by the UK’s Advertising Standards Authority after they were found to have overstated the number of cheap rooms on offer in internet adverts.

The companies were found to have breached the Committee of Advertising Practice code around misleading consumers, after advertisements claimed rooms were available for low prices. The the ASA’s active ad monitoring system found that the rooms were limited in number or subject to restrictions.

Travelodge, Hilton and Booking.com were each censured over two incorrect adverts, while Accor was cleared of one and had a second breach upheld. The companies were found to have breached the code around substantiating claims, pricing and misleading advertising.

All four companies were banned from running the adverts again and told to ensure in future that a significant proportion of rooms are available at the advertised price.

The active ad monitoring system tracks hundreds of thousands of adverts online, and flags potential breaches for the ASA’s compliance team, speeding up the process of investigating adverts which are in breach of the CAP code.

Danielle Clifford, a legal expert with Pinsent Masons, said the rulings – part of a wider investigation by the ASA into paid-for search ad – marked a significant shift from the watchdog towards more data-driven regulation of the industry.

“The active ad monitoring system means the ASA can be more proactive, with a significant uplift in adverts being scanned for potential breaches of the CAP Code,” Clifford said.

“It means companies must now ensure they are making available a significant proportion of rooms at the prices they are being advertised from, and make it explicitly clear during what period those rooms are likely to be available at that price

“It’s important businesses take this opportunity to review their advertising to make sure it does comply with the CAP Code, especially with improving technology making it easier for breaches to be discovered.”