Republic of Korea: Issued fine against Booking.com and Agoda for deceptive advertising practices

On 1 November 2022, the Fair Trade Commission (FTC) of the Republic of Korea imposed sanctions on Booking.com and Agoda Company Private Limited, both of which fall under the umbrella of Booking Holdings Inc., for engaging in deceptive practices towards consumers and violating the Act on Consumer Protection in Electronic Commerce. The FTC stated that the companies failed to disclose that the search results displayed were the outcome of paid advertising. Booking.com and Agoda had altered their algorithm to grant higher visibility to accommodation facilities that had paid for advertising without informing consumers explicitly. Consequently, the companies were fined KRW 2'500'000 each, resulting in a total penalty of KRW 5'000’000.