Texas Wins $1.25M Settlement from Hyatt Over Consumer Protection Breaches

Texas Attorney General Ken Paxton has successfully negotiated a significant settlement of $1.25 million with Hyatt Corporation. This settlement stems from allegations that Hyatt violated Texas consumer protection laws by advertising hotel room prices that were not actually available to the public.

In his lawsuit, Paxton accused Hyatt of employing deceptive practices by imposing mandatory and unavoidable fees on top of the daily room rates. Even when these fees were eventually disclosed, they were presented in a way that was unlikely to inform consumers that the initial attractive rate was not the true cost of the room. This practice provided Hyatt with an unfair advantage over more transparent companies that clearly displayed the actual prices of their rooms.

The terms of the settlement mandate that Hyatt must clearly disclose any additional fees associated with hotel room prices. This requirement aims to empower consumers, enabling them to shop and compare prices more effectively.

Paxton has a history of holding major hotel chains accountable for similar practices. He has previously reached agreements with other industry giants, including Marriott, Omni, Choice Hotels, Hilton, and Booking.com, addressing issues related to online hotel reservations and fee disclosures.

Source: Texas Attorney General’s Office

Topics
Texas

Texas Attorney General Ken Paxton has successfully negotiated a significant settlement of $1.25 million with Hyatt Corporation. This settlement stems from allegations that Hyatt violated Texas consumer protection laws by advertising hotel room prices that were not actually available to the public.

In his lawsuit, Paxton accused Hyatt of employing deceptive practices by imposing mandatory and unavoidable fees on top of the daily room rates. Even when these fees were eventually disclosed, they were presented in a way that was unlikely to inform consumers that the initial attractive rate was not the true cost of the room. This practice provided Hyatt with an unfair advantage over more transparent companies that clearly displayed the actual prices of their rooms.

The terms of the settlement mandate that Hyatt must clearly disclose any additional fees associated with hotel room prices. This requirement aims to empower consumers, enabling them to shop and compare prices more effectively.

Paxton has a history of holding major hotel chains accountable for similar practices. He has previously reached agreements with other industry giants, including Marriott, Omni, Choice Hotels, Hilton, and Booking.com, addressing issues related to online hotel reservations and fee disclosures.

Source: Texas Attorney General’s Office

Topics
Texas