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JONATHAN HAYWARD/The Canadian Press
Travel website FlightHub Group Inc. has been hit with a $5-million penalty by Canada’s Competition Bureau for charging hidden fees, posting fake customer reviews and misleading consumers about its prices for flights.
The settlement also includes $400,000 penalties each for company directors Matthew Keezer and Nicholas Hart, the competition watchdog said on Wednesday. “FlightHub is also required to remove any online reviews of its services that were posted by or on behalf of the company but appeared to be from genuine customers,” the agency said in a statement.
The review page has already been removed.
Dabarti CGI/Shutterstock
FlightHub Group Inc. has reached a multimillion-dollar settlement after an investigation into its marketing practices found it deceived customers.
According to the Competition Bureau of Canada, the online travel agency misled consumers about its prices and booking services and made millions of dollars by charging hidden fees.
The investigation also concluded that the company had written reviews praising its own service, which appeared to be from real customers.
FlightHub Group is facing a penalty of $5 million, and two company directors Matthew Keezer and Nicholas Hart have agreed to pay an additional $400,000 each.
“We have pursued this case relentlessly to ensure that Canadians would be protected against any further deceptive marketing by FlightHub and its directors,” said Matthew Boswell, the Commissioner of Competition.