Priceline Class Action Should Not Be Dismissed, Plaintiff Says

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The plaintiff in a class action lawsuit accusing Priceline of unfairly keeping sales tax on car reservations he never used argued the case should not be dismissed.

Lead plaintiff Richard Laquer alleged in his class action lawsuit that Priceline refused to refund the taxes and fees applied to a reservation for a rental car when he cancelled that reservation and that Priceline did not use this money to pay state and federal taxes.

Priceline hit back, saying that they tell customers that taxes and fees are not refundable when they make the purchase.

Priceline features a “name your own price” system where customers can make an offer on a hotel room, rental car, or other travel packages and, if the offer is accepted, Priceline charges the customer the offered price along with taxes and fees.

The plaintiff alleged in his complaint that he used “name your own price” to reserve a rental car for $35. The plaintiff claims he never used the reservation, but was still charged nearly $20 in taxes and fees on the reservation.

In addition to arguing that customers are notified of their no refund policy, Priceline says the class action should be dismissed because Laquer has no standing to force Priceline to use this money to pay state and local taxes.

The plaintiff countered, arguing that Priceline is not entitled to the money collected as a tax.

“One cannot collect a tax, deem the sale to not have occurred, and then simply keep the sales tax. Only a government can keep a ‘tax,’” said the plaintiff in his motion.

The plaintiff also contends that he should have standing in this class action lawsuit because he is not seeking to enforce the tax on Priceline, only to obtain a refund for taxes Priceline did not pay to the government.

Laquer points out that he is not attempting to bring a claim for taxes on behalf of the state of California.

The plaintiff also argues that Priceline’s notification that taxes and fees are not refundable is located on page 26 of “Terms and Conditions” that are only available online through a link. This doesn’t sufficiently notify customers that they are not entitled to a refund, he claims.

“Plaintiff’s action against Priceline is straightforward: (1) Priceline took money from Mr. Laquer; (2) a portion of that money should have been returned to him; (3) it was not,” the motion states. “At the core of all the claims in this class action is Priceline’s conduct: its systematic pocketing of money to which it was not entitled.”

The plaintiff seeks to represent those who used Priceline’s “name your own price” tool to reserve hotels, airfares, and/or rental cars, but did not end up using their reservation.

Laquer is represented by Larry A. Tawwater and Darren M. Tawwater of the Tawwater Law Firm PLLC and Anton J. Rupert and Geren T. Steiner of Rupert & Steiner PLLC.

The Priceline Unreturned Fees Class Action Lawsuit is Richard Laquer v. The Priceline Group Inc., Case No. 3:16-cv-00860, in the U.S. District Court for the District of Connecticut.