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90% of Seoul's luxury hotels scrutinized for misleading room rates

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By Jung Da-hyun

Nearly 90 percent of five-star hotels in Seoul were found to use misleading room pricing practices, with final costs rising by up to 21 percent due to hidden taxes and fees, according to the Seoul Metropolitan Government, Friday.

It has been noted that many hotels commonly attract consumers by displaying prices that exclude taxes and additional fees on their initial advertisement screens, rather than showing the full final cost upfront.

A survey, conducted between June 10 and July 26 this year, revealed that only three out of 27 luxury hotels in Seoul displayed the full payment amount upfront.

Most hotels listed prices excluding taxes on initial advertisement screens, with the actual total only disclosed at the final payment step.

This pricing tactic, often referred to as a "dark pattern," misleads consumers by presenting a lower initial price, only to add fees later.

Customers often struggle to accurately compare hotel prices across online platforms, often wasting time and effort.

The gap between the initial price and the final cost was found to range between 10 percent and 21 percent. Seoul city government officials warn that this practice undermines transparency and fair competition among businesses.

In response, a revised Consumer Protection Act, set to take effect in February next year, will regulate such deceptive pricing strategies.

The city government stated that prior to the law's implementation, it will utilize the survey findings to encourage hotel operators to display accurate pricing on their websites. Additionally, hotels that do not provide adequate business information will receive corrective recommendations in accordance with the Electronic Commercial Act.

"The city government is committed to protecting online consumers in line with the enforcement of the new law," said Kim Kyung-mi, head of the Fair Economy Division at the Seoul Metropolitan Government.

Jung Da-hyun dahyun08@ktimes.com


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