Euroconsumers, a collective network of European consumer organizations, issued a statement demanding that the online travel agency eDreams provide compensation to customers who fell victim to a deceptive subscription scheme referred to as a "nightmare".
The focus of the critique lies in the eDreams Prime (Plus) subscription service, which offers various benefits such as reduced rates on airfare and accommodations.
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The agency is being accused of employing ambiguous pricing arrangements, deceptive statements regarding potential savings, and intricate procedures for free trial registrations to entice consumers into subscribing to services that are intentionally challenging to terminate.
Euroconsumers reports that there have been approximately 3,000 complaints lodged against eDreams throughout Europe, with over 200 of these complaints directed to the Belgian consumer advocacy organization, Testachats, since 2023.
Last month, a letter was sent to eDreams by Euroconsumers and its affiliated organizations, such as Testachats, advocating for a revision of the agency's procedures and the provision of complete compensation for impacted customers.
The agency was tasked with providing a detailed plan for remediation and compensation within a specified timeframe of 30 days. A statement by Euroconsumers indicates that in the absence of a response, measures will be explored for pursuing cross-border complaints and collective actions within the European context.
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Euroconsumers' correspondence comes as a response to the imposition of a €9 million penalty on eDreams by the Italian antitrust authority (AGCM) in February. The watchdog made allegations against the travel agency for engaging in unfair commercial practices and manipulative strategies in relation to the marketing of its subscription services.
AGCM identified several practices as problematic, including the utilization of vague information, creating artificial scarcity, and employing time-pressure tactics to encourage membership sign-ups for the Prime service.
Moreover, the Italian regulators highlighted a concern over the opacity surrounding price disparities that could potentially arise based on the method through which users navigated the eDreams platform or their membership status as eDreams Prime customers. The travel agency faced additional allegations of obstructing customers from exercising their right to opt out of the Prime service.
In February, a spokesperson from eDreams informed Reuters that they intend to contest the fine in order to demonstrate their adherence to both Italian and EU regulations. They further explained that the conclusions of the regulatory body do not accurately reflect their current practices and inaccurately portray standard retail operations that are widespread in various industries. A representative from the parent company of eDreams ODIGEO, in reaction to the complaint from Euroconsumers and the fine imposed by the Italian regulatory body.
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We unequivocally refute the baseless allegations put forth by Euroconsumers. It is baffling that the organization opts to make public declarations without conducting even a cursory examination and without affording us the chance to provide a response.
Euroconsumers was reached out to by The Brussels Times for a statement regarding the allegations put forth by the eDreams ODIGEO representative. However, as of the publication time, a response has not been received.