Canada’s competition regulator is investigating Montreal-based travel company FlightHub for allegedly misleading customers over ‘hidden’ fees.
The Competition Bureau says FlightHub gives a ‘false or misleading general impression’ over its fee policy relating to booking airfares and fees tied to seat selection and flight rebooking or cancelations.
It follows a lawsuit filed against FlightHub and sister company JustFly in California alleging similar violations.
Last month San Francisco City attorney Dennis Herrera filed a complaint claiming the travel companies charge for seat assignment fees on top of the fees charged by the airline without disclosing its policy clearly.
The suit alleged the OTAs push inadequate travel insurance, advertise low fares that are not available and don’t disclose bag fees and refund policy.
It is seeking a fine of $2,500 for every violation committed under California law.
FlightHub’s headquarters was raided by officers from Canada’s Competition Bureau earlier this year.
It said it has reviewed ‘thousands’ of consumer complaints.
Flighthub said it has signed a temporary consent agreement with the regulator and made changes to its pricing policy over how fees are calculated and disclosed.
"Our goal is to offer our customers complete transparency when it comes to the flights they are booking, the fees they are being charged and the airlines’ policies," Christopher Cave, FlightHub’s chief operations officer told CBC.
