The Federal Trade Commission (FTC) has confirmed it is taking a closer look at TripAdvisor's business practices amid concerns the website is removing user reviews warning of potential risks, according to the Milwaukee Journal Sentinel.
Earlier this month, TripAdvisor said it would tag hotel webpages with badges to warn of any credible media reports of sexual assault and other crimes.
The decision came in the wake of a disturbing report by the Journal Sentinel detailing several user experiences in which alleged victims of crime or their family had their reviews deemed "hearsay," "off-topic" or not "family friendly" before being removed from the site.
"The Commission has a strong interest in protecting consumer confidence in the online marketplace, including the robust online market for hotel and travel," FTC acting chairwoman, Maureen Ohlhausen wrote in a letter to Wisconsin Sen. Tammy Baldwin last week.
"When consumers are unable to post honest reviews about a business, it can harm other consumers whose abilities to make well-informed purchase decisions are hindered and harm businesses that work hard to earn positive reviews."
TripAdvisor has issued four badges for resorts in Mexico so far.
"TripAdvisor has been made aware of recent media reports or events concerning this property which may not be reflected in reviews found on this listing," the badges state. "Accordingly, you may wish to perform additional research for information about this property when making your travel plans."
In addition to the badge, the company says its working on other ways to address the issue, including better training for TripAdvisor moderators who apply its guidelines to reviews and being more specific with users when their comments are rejected.
"Over time TripAdvisor has updated this policy to allow more descriptive reviews on the site about first-hand accounts of serious incidents like rape or assault," TripAdvisor co-founder and CEO, Steve Kaufer wrote in a LinkedIn post earlier this month.
TripAdvisor spokesman Brian Hoyt told the Journal Sentinel the website will use the badge to inform travelers of places only where owners, employees or contractors are responsible, based on credible reports, as to not punish destinations for guest behavior.
"So if Harvey Weinstein attacks somebody in a hotel room, that's not something we'd badge," Hoyt told the publication. "It's not something the hotel has under its control."
Hoyt also pointed out that TripAdvisor is open to change: "We're always looking to make enhancements. It's something we're grappling with and talking about."
While the badges and improved communication are no doubt a good start, the two-decades-old Communications Decency Act provides broad legal protection for online companies like TripAdvisor that re-publish content from other sources, according to the Journal Sentinel.
Nonetheless, some legal experts note the transformation from travel review site to an e-commerce site with an incentive to sell travel has the potential to increase TripAdvisor and other companies' obligation to thoroughly inform consumers of any complaints or possible risks.
Although negative or damning reviews can undoubtedly hurt a hotel, restaurant or destination's bottom line, studies have shown that reaching out to upset guests or travelers gives suppliers the best shot at turning that individual's experience around and thus improving the message they send to fellow travelers.
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