Regulator reprimands holiday bidding site for hidden costs
Dutch regulator Authority for Consumers and Markets (ACM) has mandated changes to Reizendeals.nl, requiring the travel auction site to provide clearer pricing information to consumers. The directive comes after complaints from Dutch and Belgian customers about undisclosed costs and misleading auction processes.
Reizendeals.nl offers package holidays with a surprise element through a time-pressured auction system. Customers reported unexpected mandatory charges, with some believing they could still withdraw from the bidding process after submitting winning bids. These complaints arose when final travel costs were significantly higher than the amounts initially bid.
ACM's investigation revealed that Reizendeals.nl had failed to disclose all compulsory charges in the initial auction prices. The platform was also found to lack transparency about the binding nature of winning bids.
To comply with consumer protection laws, Reizendeals.nl is now required to display the total price, including all mandatory charges, before consumers place final bids. The platform must also clearly present the full cost for two people, as the trips are designed for two travelers, and adjust the auction button to explicitly indicate that winning bids are binding and require payment.
These adjustments were required to be implemented by November 20, 2024. Failure to comply would have resulted in weekly fines of 8,000 euros, up to a maximum of 80,000 euros.
The ACM issued the directive on October 8, 2024, and conducted a follow-up review of Reizendeals.nl. The agency confirmed that the platform has made the necessary changes.
ACM board member Manon Leijten emphasized the importance of transparency, stating, “Travel providers must be clear about their offerings and costs, even for surprise trips sold via auction systems. Consumers must know upfront the total price they are agreeing to. For auctions with time pressure, this is especially critical.”
The ACM has highlighted unique challenges posed by surprise travel packages. These trips often omit key details, such as the destination, accommodations, or departure airports, until after the purchase is finalized. The regulator insists that consumers must still be provided with all essential cost information upfront.
Additionally, ACM noted that the auction format, with its countdown clock and time-limited decision-making, creates added pressure on consumers to act quickly. This urgency can lead to decisions made without full awareness of additional charges.
Surprise travel packages often appeal to consumers, but ACM warned of risks tied to the auction system. Consumers may find that final prices are significantly higher than expected due to hidden charges or additional costs for upgrades.
The ACM encouraged consumers to remain vigilant and report any further misleading practices via its ConsuWijzer platform.
The ACM has published guidelines aimed at preventing online consumer manipulation. These include addressing “dark patterns,” such as countdown timers or pre-selected options, which pressure consumers into purchases against their interests.
