ASA Rules IHG Best Price Guarantee Ads Misleading

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UK’s Advertising Standards Authority made a ruling on October 15, 2014 (access here), that InterContinental Hotels Group’s Best Price Guarantee ads are misleading and must be changed.

IHG Rewards Club Best Price Guarantee ASA UK Ruling

The complainant’s Best Price Guarantee claim was denied because the charged currency of the 3rd party website was different than that at the hotel’s. ASA found that this currency information was not properly included on the ads advertising the guarantee.

You can access the IHG’s web page for Best Price Guarantee here.

Ad

Claims on www.ihg.com, a hotel booking website, stated “Best Price Guarantee … We’re so sure the best prices for our hotels are found on our websites that we were the first to offer the most powerful price guarantee ever by a global travel company. Every hotel reservation booked through an IHG web site [sic] is guaranteed to have the lowest room price (room rate) or total room cost (including all taxes and fees) publicly available on the internet or IHG will provide the first night’s room price free and match the lower average nightly room price found for that stay for the rest of the nights of that stay (subject to the Terms and Conditions of the Guarantee)”.

Text on the “Best Price Guarantee FAQs” page stated, “If you find a lower room price (room rate) with a lower total room cost (including all taxes and fees) on a publicly available competing Web site [sic] for the same hotel, type of accommodations and rate restrictions on the same dates, we’ll not only match that lower room price, we’ll give you your first night’s room price free, subject to the Best Price Guarantee Terms and Conditions … Rooms on the competing Web site [sic] must be publicly available, viewable and bookable on the Internet at the time of verification.”.

Text on the “IGH Best Price Guarantee Terms and Conditions” page stated “Matching prices – Currency Requirements. The currency of the hotel controls the comparison with the room price and the total room cost on the non-IHG website, and the room price and the total room cost on the non-IHG website must be available, viewable, quoted, booked, and paid for in the currency of the hotel”.

Issue

The complainant, who was told their claim for the best price guarantee did not qualify under the terms and conditions because the competitor’s website was registered in the USA, challenged whether the ad was misleading.

Response

InterContinental Hotel Groups plc (IHG) said the claim did not meet the conditions of the offer because the terms and conditions clearly stated that the comparator rate must be “available, viewable, quoted, booked and paid for in the currency of the hotel”. They also said the terms and conditions of the comparator’s website stated the credit card would be charged in US dollars. They highlighted the relevant sections of their and the competitor’s terms and conditions.

Assessment

Upheld

The ASA understood that some online competitors might initially set out their prices in one currency, but ultimately bill in a different currency. It was a condition of the guarantee that “the total room cost on the non-IHG website must be available, viewable, quoted, booked, and paid for in the currency of the hotel”, which we considered was material information. While that information appeared in the terms and conditions, we noted they were one-click away from the Best Price Guarantee page and considered that was not sufficiently prominent. Because we considered the condition was not sufficiently prominent, we concluded the ad was misleading.

Action

The ad must not appear in its current form. We told InterContinental Hotels Group plc (IHG) to ensure that qualifications were sufficiently prominent in marketing communications, for example by including the condition that the total room cost on the non-IHG website must be available, viewable, quoted, booked and paid for in the currency of the hotel, on the Best Price Guarantee page.

Conclusion

The currency requirement is only one of the small prints that the person must meet to have a successful Best Price Guarantee claim with IHG.

If IHG is soon required to have all the material information on all the ads touting the program, they better start buying more ad space and have bigger banners advertising the program on its own websites.

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