Texas attorney general Ken Paxton hit Hyatt Hotels Corp. with a lawsuit for violating consumer protection laws under the Texas Deceptive Trade Practices Act, his office said Wednesday.
The lawsuit, filed in a state district court, accuses Hyatt of engaging in “false, misleading, and deceptive acts and practices,” according to Texas law by “marketing hotel rooms at prices that were not available to the public as advertised.”
The lawsuit also accuses Hyatt of charging consumers mandatory and “unavoidable” fees, including resort fees, destination fees and amenity fees on top of 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,” according to a statement from Texas attorney general Ken Paxton’s office.
Additionally, the lawsuit claims the added fees do not align with “resort-like” experiences.
“Hyatt’s lack of transparency regarding hotel room prices has misled consumers and violated Texas law,” Paxton said in a statement. “These deceptive practices enabled Hyatt to advertise lodging at artificially low rates, and it must end immediately,” he said, adding that the state will not tolerate “illegal hidden fees,” by any hotel chain.
Hyatt did not immediately return a request for comment.
Paxton also settled with Marriott International Tuesday to prohibit the hotel company from “engaging in unlawful, unfair, and deceptive trade practices in violation of Texas law with respect to the advertising of hotel room prices,” according to the state attorney’s office. Under these terms, Marriott has to clearly represent all resort fees and prominently display each fee and the goods and services they cover, according to Paxton in an official statement.
The news follows Marriott being fined $225,000 by Pennsylvania’s attorney general for resort fee noncompliance, which stemmed from a previous lawsuit from the state, announced in April. According to the state attorney general’s statement, Marriott was fined following “multiple extensions for Marriott to comply,” and failing to do so. An agreement was ultimately made to avoid further litigation.
