Booking Holdings takes $1 billion hit to third-quarter results linked to FTC action

Booking Holdings experienced a $900 million revenue reduction and a $100 million loss due to an FTC action concerning Priceline's involvement in deceptive hotel advertisements. The company's third-quarter revenue declined by 1% year-over-year, resulting in a 1.5% drop in its stock price following the news. The FTC has been investigating Priceline's partnership with Guest Reservations, a third-party website often charging higher prices and fees for hotel rooms.

This investigation is related to potential violations of rules against impersonating other businesses and other possible fee-related violations. Guest Reservations has faced over 1,000 consumer complaints to the Better Business Bureau, with many customers accusing the company of surprise fees and unresponsive customer service representatives.

While a settlement has not been reached, the company warned that future litigation and regulatory processes in other jurisdictions could negatively impact its business, results, and reputation.