Attorney General Ken Paxton has reached a $1.25 million settlement with Hyatt Corporation over allegations of deceptive pricing practices. As reported by the Texas Attorney General's office, the lawsuit accused Hyatt of violating consumer protection laws by advertising hotel rooms at rates that were not truly available to the public.
The crux of the issue involved mandatory, unavoidable fees Hyatt was charging in addition to the daily room rates, an act Paxton deems gives the company a dishonest edge over competitors. Despite these fees being disclosed at some point, the timing and manner of disclosure were such that, consumers could easily overlook them, leading to the misleading impression that the advertised rate was the full cost. "Texas consumers should never be misled by hotel companies attempting to hide fees and charges," Paxton said.
The terms of the settlement require Hyatt to explicitly disclose any fees added to a room's price, thereby allowing customers to better compare and shop for hotel reservations. This case is not isolated, as it follows in the footsteps of several settlements that Paxton has procured over similar issues with other lodging enterprises. Companies such as Marriott, Omni, Choice Hotels, and Hilton, in addition, to travel platform Booking.com, have all been subjects to agreements enforcing price transparency.
Paxton's office emphasized the importance of honesty and transparency in the hotel industry. "Any hotel company or, booking site that tries to mislead and take advantage of Texans will be exposed and will pay a heavy penalty for their deception," the Attorney General warned. These efforts have not only brought about financial settlements but also influenced federal regulations targeting so-called "junk fees" to protect consumers from hidden costs.
