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“Trivago earned approximately $92 million in revenue from those non-cheapest top position click-outs” $92M - $45M = $47M Average pay out to customers who were
by timmattison 4y ago
“Trivago earned approximately $92 million in revenue from those non-cheapest top position click-outs”
$92M - $45M = $47M
Average pay out to customers who were ripped off = $0
Incentive to not do this again = 0
- CogitoCogito 4y agoWell that's revenue and not profit, so they might not have come out on top. From the article: > The court found that Trivago would have made between $53 million and $58 million less if customers had always clicked out onto the cheapest offer. > The court also estimated that consumers ended up paying about $30 million more for their hotel rooms than if they had always clicked on the cheapest offer, rather than the top-position offers featured by Trivago. It looks like overall this is pretty proportional to the damage actually. Edit: Though I do agree overall it's important for Trivago to come out net negative if companies are to have a financial incentive not to do this sort of thing. I would agree that the fine should be high enough to ensure that.
- lupire 4y agoPunitive damages are usually 3x damages to make up for all the times the perpetrators don't get caught and sued.
- listenallyall 4y agoThe article says they made less than $7 million profit in their entire Australian operation, so $45 million is a pretty large penalty.