Canada's competition watchdog investigating travel site Flighthub - Action News
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Canada's competition watchdog investigating travel site Flighthub

A travel company that has been sued by the State of California and drawn warnings from the Better Business Bureau is now being investigated by Canadas Competition Bureau.

Company accused of misleading marketing

The competition bureau is investigating FlightHub and has signed a consent agreement to limit their marketing while that investigation takes place. (Eric Foss/CBC)

Canada's competition watchdog is accusingMontreal-based travel company FlightHubof garnering millions of dollars in revenuefrom hidden fees.

The Competition Bureauhas signed an agreementthatcommits the online travel agencyto avoid giving a "false or misleading general impression" to the public regarding airfares, seat selection and flight rebooking or cancellation.

None of the allegations have been proven and FlightHub says it is co-operating with the ongoing investigation.

Earlier this year the watchdog executed search warrants and seized records at FlightHub's headquarters.

The bureau says it has reviewed thousands of consumer complaints about online marketing by FlightHub and its sister travel agency JustFly.

Montreal-based online travel agency FlightHub's headquarters was searched by Canada's Competition Bureau earlier this year. (FlightHub)

The agreement is slated to remain in effect until the bureau's investigation is resolved by a deal with FlightHub or a decision by the quasi-judicial Competition Tribunal.

FlightHub said it has introduced changes to its platforms to address the bureau's concerns and voluntarily entered into a temporary consent agreement "in the spirit of collaboration."

"Our goal is to offer our customers complete transparency when it comes to the flights they are booking, the fees they are being charged and the airlines' policies," said Christopher Cave, FlightHub's chief operations officer, in an email.

Last month, the state of California filed a lawsuit against FlightHub and JustFly over alleged "deceptive" business practices that include "false" and "hidden fees."