EU to investigate Booking.com over how it combats scams

The European Union has announced it will be investigating whether accomodation reservation website Booking.com is doing enough to identify and eliminate fraudulent listings and phishing scams.

The European Commission says it will look into whether the Amsterdam-based company has breached the Digital Services Act by not having diligently assessed or effectively mitigated risks - it will also be probed into whether it did enough to clearly label locations which had been boosted in the listings through additional payment.

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The investigation comes after reports over the summer by the consumer group Which? alleging that it was able to list 10 Downing Street as a holiday let on the platform, and that scammers adverstised Portcullis House with apartments to book, even though it is an office building and owned by the House of Commons.

Earlier this year, Booking.com fell victim to a data hack where customer booking information was compromised, leading the company to issue a warning regarding "reservation hijacking".

In addition, a holiday lets owner claims that Booking.com initially said she would be liable for refunds after fake advertisements were listed in her business name, leading to many unhappy customers.

Booking.com said it was engaging constructively with the Commission. "Security, trust and the protection of personal information are top priorities ​at Booking.com," a spokesperson for the company said.

The Commission's investigation will look into: whether the company does enough to identify and assess the risks linked to fraudulent and non-compliant listings and the negative impact it could have on consumer protection; phishing scams, the risk it poses to customers and what it does to protect them, and; whether paid-for boosted listings are clearly identifiable as advertisements.

"Europeans should be able to book their holidays without fear of being scammed," says Henna Virkkunen, EU Executive Vice-President for Tech Sovereignty, Security and Democracy.

"The Digital Services Act sets clear responsibilities on platforms to address these risks, and we must ensure that the leading booking platform in Europe takes those responsibilities seriously."

Additional reporting courtesy of Reuters

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