Trip.com Group Announces 19 Corrective Measures to Fully and Resolutely Prevent "Big Data Price Discrimination"

Deep News
Jul 25

The State Administration for Market Regulation issued an administrative penalty and corrective requirements to Trip.com Group on July 25. The company fully accepts the ruling and will strictly implement all corrective actions.

This penalty serves as a serious warning and educational moment for Trip.com. Under the supervision of the market regulator, the company will fulfill its platform responsibilities, actively respond to public concerns, and has already formulated a remediation plan subject to public oversight.

The 19 corrective measures are outlined across five areas:

First: Immediately cease exclusive cooperation practices and protect hotel operators' autonomy

1. Fully discontinue the first-tier authorized distribution (special brand) model to prevent forced or covert exclusive cooperation.

2. Revise all relevant cooperation agreements, replacing the first-tier authorized distribution model with a new tiered merchant partnership system.

3. Eliminate unreasonable traffic arrangements and establish a new traffic allocation mechanism.

Second: Immediately halt unreasonable "lowest price across all platforms" requirements and protect hotel operators' independent pricing rights

1. Fully discontinue the second-tier authorized distribution (gold badge) model to eliminate demands for "lowest price across all platforms."

2. Revise all relevant cooperation agreements, replacing the second-tier authorized distribution model with a new tiered merchant partnership system.

3. Eliminate unreasonable traffic arrangements and establish a new traffic allocation mechanism.

4. Discontinue hotel pricing tools: Trip.com fully removed the "AI Business Assistant" (formerly Price Adjustment Assistant) feature in March 2026. Effective immediately, all pricing adjustments via the "Listing Pass" function will cease, and the function will be deactivated. The company will no longer use technological tools to illegally adjust prices.

5. Strictly regulate business personnel conduct: Without explicit merchant consent, staff may not arbitrarily adjust prices. Internal management of business operations will be continuously strengthened.

6. Refund related order reserves: As per the penalty notice, Trip.com will fully refund order reserves deducted due to pricing adjustments for second-tier authorized distribution partner hotels, totaling RMB 122,781,078.

Third: Safeguard hotel operators' legitimate rights, continuously listen to merchant feedback, and optimize the business environment

1. Cancel listing fee arrangements: Cease the original fee structure for first and second-tier authorized distribution partnerships and establish a fair, reasonable new commission model.

2. Optimize platform rules and improve transparency: Fully remove contractual clauses allowing the platform to adjust merchant prices. Continuously improve platform rules to ensure openness and transparency, protecting merchants' rights to information and fair trade.

3. Respect merchant wishes: Adhere to voluntary selection and equal negotiation mechanisms, avoiding forced participation in promotional activities. Expand feedback channels and merchant appeals mechanisms, regularly soliciting merchant input to build trust.

4. Streamline promotions to reduce merchant pressure: Discontinue promotional categories like "Smart Selection Specials" to alleviate merchant burdens.

5. Foster high-quality, healthy competition: Provide free access to data center VIP services, invest in building an international marketing network, enhance AI empowerment and merchant training, help merchants improve service quality and efficiency, and collectively resist "rat-race" competition to promote quality-driven market pricing.

Fourth: Strengthen consumer rights protection and improve service standards

1. Continuously deliver high-quality services: Listen to consumer feedback, address reasonable complaints promptly and properly, and improve overall experience and satisfaction.

2. Enhance personal information protection and data security compliance: Strictly comply with relevant laws to protect consumer privacy and data security.

3. Prevent big data price discrimination risks: Commit to ethical algorithms, fully and resolutely preventing "big data price discrimination" and protecting consumer rights.

Fifth: Strengthen compliance systems and establish long-term mechanisms

1. Enhance anti-monopoly compliance management: Establish a robust anti-monopoly compliance system, strengthen the compliance committee's leadership role, and develop mechanisms for compliance consultation, review, reporting, and rewards/punishments, ensuring clear accountability.

2. Raise anti-monopoly compliance awareness: Conduct ongoing compliance training, refine compliance guidelines, educate all employees on lawful operations, and integrate compliance requirements into daily processes.

The company will methodically advance these corrections, maintaining communication with merchants to minimize disruptions and seek win-win outcomes within a compliant framework.

Trip.com views this penalty as a critical wake-up call, committing to improved platform governance, lawful operations, and fair competition. The company will accept regulatory and public oversight, internalizing this as a standard corporate practice to enhance platform services and compliance, fostering mutual benefits with partners, consumers, and society while driving high-quality development in the travel industry.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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