Texas Attorney General Ken Paxton secured a $1.25 million settlement with Hyatt Corporation for violating Texas consumer protection laws by marketing hotel rooms at prices that were not available to the public as advertised.
Paxton’s lawsuit against the company alleged that Hyatt engaged in illegal practices by charging consumers mandatory and unavoidable fees in addition to daily room rates. Even when these fees were eventually disclosed, they were done so in a manner that was unlikely to alert consumers that the initial rate that attracted them was not, in fact, the actual price of the room. This gave Hyatt an unfair and unlawful advantage over honest companies that were transparent in displaying the actual price of rooms.
The settlement’s terms require Hyatt to disclose any fees added on to a hotel room’s price, allowing consumers to more efficiently shop and compare prices.
Paxton has previously reached agreements with Marriott, Omni, Choice Hotels, Hilton, and Booking.com over online hotel reservation practices and disclosure fees.
Source: Texas Attorney General’s Office
Topics Texas