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Lawsuit accuses travel sites of 'price-fixing' with hotels

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    Legal panel weighs in on case

  • Duration 3:00
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Keep well and out of a lawsuit which could affect thousands of people who travel and book hotel rooms on line.

There's a new lawsuit and it claims many popular travel sites illegally work with -- hotel companies to Jack up the prices that we customers pay.

Among the major sites named in this lawsuit Orbitz travelocity Expedia and an offshoot of Priceline all big names.

The suit claims the travel companies worked with a major hotel chains to set minimum prices for rooms.

That way to suit claims they they can cut down on competition from smaller sites.

The suit filed on behalf of two travelers is asking for an injunction to stop price fixing as they call it.

And the attorneys are asking for unspecified damages we have calls out to the companies named in the suit only -- -- responded said the lawsuit has no merit.

So let's think of the legal panel the criminal defense attorney -- -- whose with us and and I -- illegal Ozzie is a prosecutor and looking into this so -- again.

Price fixing if true.

Illegal.

Only on and a whole lot of trouble now it's pretty initial here what's happening is also little interesting that it's private parties are starting using the government comes in first and then it.

Something is found for them and then private parties come -- but basically what they're saying here is that.

The online giants got together and did some arm twisting with the hotel chains.

To say if you don't.

Above board only resell at this bottom line price we're not going to apple work with you at all on our site.

They have so much of the market that if it's true -- that stops the little guys who -- will discount more.

Today and get something so and what that means for all of us that we pay higher prices and that's why people care so much about these price fixing cases -- Randy.

Evidence would be nice.

It would be real nice to see some actual evidence of that.

We have to first understand what price fixing is all about.

I -- determine my own price and I can determine who I'm going to sell to and at what price if I get together with my competitor I get together let's say without a seat and say.

You know what let's agree -- going to sell this plan for the same price.

That's price fixing it and there is no evidence right now price fixing perhaps the only evidence is you know want a hotel Star -- And -- determine for myself who I'm going to let.

Do my booking whether I'm going to sell a real and online retailer.

A rule more I'm going to let them charge me fees don't want.

I don't like 400 dollar room going for 75 bucks I don't wanna cheapen my brand -- -- some evidence of -- effect.

I doubt that any price fixing.

Well we can look to the UK -- -- -- the evidence there because the UK's thirty dollar investment authority come out with some initial findings against these big online giant saying that they RD CV evidence they've seen evidence of this.

And so I'm quite sure that these private parties here.

Have flipped onto the evidence that has already come out there and -- going to use in the case here it's -- same companies because they are worldwide avalanche could be on the way we'll keep you updated guys -- back to you.

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