Google Fined in France for Misleading Hotel Star Ratings

Google Fined €1.1 Million for Misleading Hotel Ratings in France

Google has reached an agreement to pay a €1.1 million penalty due to the use of deceptive star ratings for hotels within France.

The technology company had been utilizing its own algorithmic system to rate hotels displayed through its search engine and on Google Maps.

Investigation Initiated by French Watchdog

In 2019, the French national competition and consumer watchdog, the DGCCRF, launched an investigation following complaints from numerous hoteliers regarding this proprietary rating system.

The investigation uncovered that Google had substituted the established classification system of the official tourist board, Atout France, with a star rating system based on its own internal criteria.

This alternative system was applied to over 7,500 hotels and lodging establishments.

Discrepancies in Star Ratings

It became apparent that Google’s definition of a “five-star” hotel differed significantly from the standards set by Atout France.

The DGCCRF determined that Google’s presentation of tourist accommodation, specifically its use of the term “stars” on a 1 to 5 scale, created confusion among consumers.

Impact on Consumers and Hoteliers

“This practice proved particularly detrimental to consumers, leading them to be misinformed about the quality of services they could anticipate when booking lodging.

It also resulted in disadvantages for hoteliers whose properties were incorrectly presented as having a lower ranking than their official Atout France classification,” stated the watchdog in a translated press release.

Deceptive Business Practice

The DGCCRF concluded that Google had engaged in a deceptive business practice.

In collaboration with the public prosecutor, the sanction was proposed to Google Ireland, the company’s European headquarters, and Google France.

Resolution and Changes to Hotel Ratings

Alongside the payment of the fine, Google has revised its display of hotel star ratings in France.

The company now agrees to showcase the official ratings provided by Atout France.

This ensures that tourists in France can rely on the authenticity of a five-star hotel rating displayed on Google Maps, knowing it adheres to official standards and is not subject to online manipulation tactics.

Google’s Response

A Google spokesperson confirmed the resolution with the DGCCRF, stating to TechCrunch: “We have reached a settlement with the DGCCRF and have implemented the necessary changes to exclusively display the official French star rating for hotels on both Google Maps and Google Search.”