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Florida officials ask for U.S. probe of $220 m. hotel booking ‘fraud’

Members of Congress including U.S. Rep. Lois Frankel, D-West Palm Beach, have asked the Federal Trade Commission to launch an immediate investigation into what they call fraudulent online hotel booking sites that have have hurt consumers and hotels.

“We write to urge the Federal Trade Commission to immediately open an investigation into companies deceptively targeting consumers with fake online hotel websites,” a June 5 letter signed by 27 Florida delegation members says. “According to the American Hotel & Lodging Association (AHLA), thousands of consumers are misled every year into making reservations through fraudulent websites and call centers that give the appearance of being connected to a hotel, but actually have no legal relation to them. AHLA estimates that fraudulent online booking scams have cost U.S. travelers upwards of $220 million per year.”

In the last year alone, close to 2.5 million reservations were made on such deceptive sites, officials said, ripping off guests of Florida hotels with either a worthless reservation or one that delivered much less than promised, officials said.

“The FTC gets requests from a variety of sources about various topics, and all we can say is that the agency gives them all careful consideration,” agency spokesman Frank Dorman said.