Class action alleges Expedia uses MFN clauses to keep hotel prices high
A U.S. class-action lawsuit claims Expedia forces hotels to honor most-favored-nation clauses that stop them from offering lower rates elsewhere, allegedly violating antitrust law.
Travelers planning holiday trips are facing a class-action suit that says Expedia’s most-favored-nation (MFN) clauses force hotels to keep prices at least as high as those shown on Expedia, blocking lower offline rates. The filing in a U.S. District Court claims this arrangement breaches the Sherman Act by restricting competition and inflating consumer costs. Experts Jonathan “Jack” Nicastro and Lee Hepner offer opposing views: Nicastro sees MFN clauses as a form of price competition, while Hepner argues they curb hotels’ ability to offer cheaper deals on other platforms.
The complaint also notes that Expedia may demote hotels in its search results if they violate the policy, further limiting consumer choice. Lawyers for the plaintiffs are with Terrell Marshall Law Group, and the company has not responded to comment requests. Analysts warn that even if the case proceeds, any change in pricing could be slow and may have limited effect on everyday travelers.
Why it matters
The lawsuit could reshape how online travel agencies set hotel prices and affect consumer costs.
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