Loews Hotels Class Action Says Hidden Gratuity Is Illegal

Loews Corporation and Lowes Hotels Holding Corporation have been hit with a class action lawsuit challenging their practice of imposing “hidden” automatic gratuity charges in violation of Florida law.

Plaintiff Michael Fox, who recently filed a similar class action lawsuit against The Ritz-Carlton Hotel LLC, sued the Loews companies on Wednesday, claiming they charge consumers in Florida an illegal gratuity or service charge.

Specifically, Fox alleges that the Loews gratuity charge violates the Florida Deceptive and Unfair Trade Practices Act (FDUTPA) and Florida Statute 509.214.

“Defendant violated these Florida statutes in a number of ways, including but not limited to: unlawfully including an automatic gratuity or service charge of an amount equal to or approximately 18-20% of the charges for food or beverages without providing the statutorily required notice; presenting the notice of an automatic gratuity or service charge in small, hard to read type; and, hiding the notice on the last page of the menu,” Fox alleges in the Loews Hotels class action lawsuit.

Under Florida law, food service establishments that impose an automatic gratuity or service charge for food purchases must include on the food menu and on the face of the bill a notice to the customer that an automatic gratuity is included.

According to the gratuity charge class action lawsuit, the Loews defendants own, operate, manage and/or control seven Florida hotel properties including: The Loews Miami Beach Hotel in Miami Beach; The Hard Rock Hotel at Universal Orlando; The Loews Don CeSar Hotel in St. Pete Beach; The Loews Portofino Bay Hotel at Universal Orlando; The Loews Royal Pacific Resort at Universal Orlando; The Loews Sapphire Falls Resort at Universal Orlando; and Universal’s Cabana Bay Beach Resort in Orlando.

Each of these hotels include at least one or more public food service establishments, such as restaurants, lounges, bars and/or grills. Hotel customers may order room service or purchase in-room food and snacks from a mini-bar.

Fox claims that he dined at a Florida Loews hotel restaurant in April 2017. After he was finished eating, he was presented with a restaurant bill, which allegedly indicated that an automatic service charge of 20 percent was included with the charges for food and/or beverages.

Under the check total, Fox observed an extra line for him to add a tip, which he did. He then paid the check in full. He reports a similar experience at a different Florida Loews restaurant location.

“There was no mention on the restaurant’s menu, neither on the hard copy provided to Plaintiff in the restaurant nor on the menu posted online to the hotel’s website, that an automatic gratuity or service charge of any amount would be added to Plaintiff’s check,” the Loews Hotels class action lawsuit alleges.

Fox filed the Loews Hotels class action lawsuit on behalf of himself and a proposed Class of all customers of a public food establishment at a Florida Loews hotel in the last four years who were billed and paid for food and/or beverages, and whose bill included an automatic gratuity or service charge.

Fox is represented by David M. Marco of SmithMarco PC; James A. Francis, John Soumilas and David A. Searles of Francis & Mailman PC; and by Lewis J. Saul and Edward A. Coleman of Lewis Saul & Associates PC.

The Loews Hotels Gratuity Charge Class Action Lawsuit is Michael Fox v. Loews Corporation, et al., Case No. 1:17-cv-24507, in the U.S. District Court for the Southern District of Florida, Miami Division.