Attorney General Ken Paxton has 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.
The 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.
“Consumers are often surprised by mandatory hotel fees that are belatedly added to their daily room rate,” the suit states. “Hotels sometimes refer to these hidden mandatory costs as facilities, service, residence, incidental, destination, or resort fees.
“For years Hyatt has used mandatory fees to dupe unsuspecting Texans by not including mandatory fees in the advertised room rate.”
Paxton asserts the lack of disclosure gave Hyatt an unfair and unlawful advantage over honest companies that were transparent in displaying the actual price of rooms.
“Texas consumers should never be misled by hotel companies attempting to hide fees and charges,” said Paxton. “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 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.
The settlement marks the attorney general’s sixth related to these deceptive pricing practices for online hotel reservations.
Previously, Paxton reached agreements with Marriott, Omni, Choice Hotels, Hilton, and Booking.com to ensure that online hotel reservation practices are transparent and companies disclose all fees to consumers.
Additionally, Paxton says his efforts helped spur new federal regulations cracking down on these “junk fees” practices.
The lawsuit was filed in Comal County District Court.
Case No. C2023-0884D
