Ritz-Carlton Class Action Challenges ‘Hidden’ Automatic Gratuity Charge

The Ritz-Carlton Hotel LLC has been hit with a class action lawsuit alleging it improperly charges an automatic gratuity without providing adequate notice to consumers.

Plaintiff Michael Fox of New York accuses the Ritz-Carlton of violating Florida laws including the Florida Unfair Deceptive Trade Practices Act by including an automatic 18 to 20 percent gratuity or service charge without providing the statutorily required notice.

Ritz-Carlton owns, operates, manages or controls 10 hotels in Florida, according to the Ritz-Carlton automatic gratuity charge class action lawsuit, including locations in Amelia Island, Fort Lauderdale, Miami, Naples, Orlando, Sarasota and South Beach.

“Ritz-Carlton violates Florida law at the public food service establishments in its hotels in the State of Florida by failing to provide adequate notice on the restaurant’s menu that an automatic gratuity or service charge of any amount would be added to a customer’s check,” Fox says in the Ritz-Carlton automatic gratuity class action lawsuit.

According to the Ritz-Carlton class action lawsuit, the automatic gratuity notices are printed in small, hard-to-read type or are hidden on the last page of the menu. Additionally, these notices allegedly falsely claim that the suggested gratuities could be adjusted or removed from the bill when they are actually mandatory charges.

The Ritz-Carlton also charges taxes on the gratuity amounts in violation of Florida law, Fox claims in the Ritz-Carlton automatic gratuity charge class action lawsuit.

Fox says he visited two different Florida Ritz-Carlton restaurants in April 2017 and was charged an automatic 18 percent gratuity at both locations. According to the Ritz-Carlton class action lawsuit, neither location provided the statutorily required notices.

Fox filed the Ritz-Carlton class action lawsuit on behalf of himself and a proposed Class of consumers who purchased food and/or drinks at a restaurant, bar, mini-bar, lounge and/or other food establishment owned, operated and/or controlled by the Ritz-Carlton in Florida and who were charged a gratuity or service charge in the last four years.

The Ritz-Carlton automatic gratuity class action lawsuit asserts violations of Florida Statute 509.214 for failing to provide notice of the automatic gratuity charge, violations of the Florida Unfair and Deceptive Trade Practices Act, violations of Rule 12A-1.0115 of the Florida Administrative Code, declaratory judgment and injunctive relief.

Fox is seeking an order requiring Ritz-Carlton to conspicuously place notice of its gratuity charge policy on the face of customers’ bills. He also seeks actual damages, attorneys’ fees and costs, pre- and post-judgment interest, and other relief the court deems proper.

He has demanded a jury trial.

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 Ritz-Carlton Automatic Gratuity Charge Class Action Lawsuit is Michael Fox v. The Ritz-Carlton Hotel Company LLC, Case No. 1:17-cv-24284-JLK, in the U.S. District Court for the Southern District of Florida, Miami Division.