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- Government Actions:Government Action: BBB reports on known government actions involving business’ marketplace conduct:NY AG Secures $2.6 Million From Online Travel Agency for Deceptive Marketing
The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.
On 3/16/2022, New York Attorney General's Office announced it had secured $2.6 million from an online travel agency, Fareportal Inc., for misleading consumers with deceptive marketing tactics. The investigation revealed that the company, which operates several travel-related websites and mobile platforms, including CheapOair.com and OneTravel.com, created false urgency around availability to sell airline tickets and hotel rooms. Fareportal often falsely advertised that airline tickets or hotel rooms were quickly selling out to pressure customers into making purchases on its platforms. As a result of Attorney General James’ agreement with the online travel company, Fareportal is required to pay $2.6 million to the state and display accurate, real-time information to consumers.
Attorney General James’ investigation into Fareportal, which is headquartered in New York, revealed that since at least 2017, the company used a number of deceptive tactics to create a false sense of urgency and social pressure to induce customers to book airline tickets or hotel rooms, whether or not Fareportal had the best price for the tickets or hotel rooms. Fareportal used manipulative tactics, known as dark patterns, that are designed to trick online consumers into making purchases or decisions that appear to be in their interest but actually aren’t.
The investigation also revealed the deceptive use of countdown timers, misleading disclosures related to the service fees that were added to the price of airline tickets, and misleading statements related to the policy for cancellations made within 24-hours of booking. Fareportal also used fictitious prices in purported markdowns for airline tickets. All of the conduct was designed to increase the percentage of visitors to Fareportal’s platforms that would complete a purchase.
This agreement requires Fareportal to pay $2.6 million in disgorgement and costs. In addition, Fareportal is required to ensure that all messages related to the supply or popularity of travel-related products and services are based on accurate data or information. In addition, Fareportal is required to ensure that any comparison prices used in promoting discounted prices for airline tickets are prices at which the listed tickets were actually offered to consumers. The agreement also requires Fareportal to make accurate disclosures related to its service fees and its cancellation policy.
Overview
BBB Accredited Since: 4/20/2015
Years in Business: 21
BBB Accreditation & Rating
Business Details
- Local BBB:
- BBB Serving Metropolitan New York
- BBB File Opened:
- 4/4/2006
- Business Started:
- 2/27/2003
- Business Incorporated:
- 2/27/2003
- Type of Entity:
- Corporation
- Alternate Names:
- OneTravel
- Travelong
- CheapOAir
- Business Management:
- Mr. Ruben Bello, Global VP of Customer Experience
- Mr. Glenn Cusano, President
- Mr. Robert Sumner, Chief Operations Officer
- Mr. Harsh Borar, Strategy and Operations Excellence
Additional Contact Information
- Principal Contacts
- Mr. Ruben Bello, Global VP of Customer Experience
Additional Information
- Business Categories
- Travel Agency, Airline Ticket Agency
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