Booking Holdings, the parent company of Priceline, is reportedly facing action from the U.S. Federal Trade Commission (FTC) over allegedly deceptive online hotel ads. Some ads appear to direct consumers to a hotel’s official website but instead send them to a third-party site, where they may encounter extra fees.

The affiliate at the center of the probe is reportedly Guest Reservations, a hotel aggregator that has received numerous consumer complaints. The FTC is examining whether the affiliate’s websites impersonate businesses and fail to clearly disclose fees. In an August 2026 filing, Booking Holdings disclosed that the FTC was considering a lawsuit against Priceline and an unnamed affiliate partner over their business practices.

One source suggested potential penalties could exceed $500 million. The probe comes as the FTC increases its focus on misleading advertising and hidden fees that raise costs for consumers. Booking Holdings shares edged lower following the news.