Pralhad Joshi directs probe into cancellation charges on Agoda, booking platforms
New Delhi, May 23
Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi on Saturday said he has directed the Department of Consumer Affairs and the Central Consumer Protection Authority to investigate alleged excessive cancellation charges being imposed by Agoda and online ticket booking platforms on consumers.
In a post on social media platform X, the minister said the probe would examine whether online ticket booking platforms were charging cancellation fees beyond what airlines levy or what is disclosed to consumers at the time of booking.
Joshi said instructions had also been issued to examine the practices of other online ticket booking platforms operating in the country.
"I have directed the Department of Consumer Affairs and CCPA to investigate whether online ticket booking platforms are imposing excessive cancellation charges on consumers, beyond what is charged by airlines or disclosed at the time of booking," the minister said.
He added that such practices undermine transparency and consumer trust and, if found to be unfair or in violation of consumer rights, could amount to unfair trade practices under the Consumer Protection Act, 2019.
The minister further said the CCPA would take necessary action, including class action measures wherever appropriate, to safeguard consumer interests and ensure fair treatment of consumers.
The move came after Bharatiya Janata Yuva Morcha (BJYM) National Secretary raised concerns on social media platform X over a large discrepancy in cancellation charges levied by an online travel booking platform and the airline.
In his post, the BJYM leader claimed he had booked an Akasa Air ticket through Agoda and accidentally selected Navi Mumbai instead of Mumbai while making the booking.
According to the post, Agoda showed a cancellation fee of Rs 4,764 and a refund amount of Rs 1,571 when he attempted to cancel the ticket. However, after checking directly with Akasa Air, the airline's cancellation page reportedly showed a deduction of only Rs 299 and a refund amount of Rs 6,076.
The BJYM leader further claimed that Akasa Air customer care had confirmed that the airline's cancellation charge was only Rs 299 and that the refund would be processed through Agoda since the booking had been made on the platform.
Questioning the discrepancy, he alleged that the platform was charging nearly 15 times the airline's actual cancellation fee and sought greater transparency from booking partners.
— IANS
Reader Comments
This is such a relief for consumers! I had a similar experience with Booking.com where they charged cancellation fee way more than hotel's policy. The lack of transparency is shocking. But I wonder—will this probe also cover other platforms like MakeMyTrip and Goibibo? They also have similar practices. Let's see how strong the action is.
As someone who books tickets for work travel frequently, this issue hits home. In the US, we have similar problems with Expedia and Priceline. It's good to see Indian authorities being proactive. But I hope the investigation is thorough and doesn't just become a political statement. Need concrete action to protect consumers.
Good initiative but I have mixed feelings. On one hand, yes, these platforms are overcharging. On the other hand, the government should also look at airline cancellation policies—they are also very strict. Also, consumers should read T&C carefully before booking. But charging 15 times more is definitely wrong. Let's hope for balanced regulation.
Finally! 🔥 I had a nightmare with Agoda last year when they charged me Rs 3,000 cancellation fee for a hotel that only charged Rs 500. When I contacted them, they kept giving run-around. Government intervention was sorely needed. But I hope they also educate consumers about their rights. Many people don't even know they can complain to CCPA.
While this is a welcome move, I'm a bit skeptical about how effective it will be. These platforms have legal teams and can argue that they provide additional services.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.