Franchisees of Wyndham Worldwide Inc. and Choice Hotels International Inc. have filed a class action lawsuit against the companies for illegally taking loyalty fees for guests who, in some cases, don’t even know they’ve been enrolled in frequent-stay programs. The deceptive practice, the franchisees say, has resulted in them paying inflated program fees.
The Wyndham and Choice Hotels class action lawsuits allege the two major hotel brands auto-enroll guests who book online into loyalty programs, unless the guests opt out. Once enrolled (which some guests don’t even realize has happened), the hotels use their personal data to reward loyalty points to the guests even if they didn’t provide their membership information at the time of booking or check-in.
The result, the class action lawsuits say, is that hotel franchisees pay loyalty program fees of up to 5 percent of gross room sales generated by the loyalty program – even though guests may not know that they are entitled to loyalty benefits or may not stay at the hotel property because of the loyalty programs.
The franchisees are claiming in the Wyndham and Choice program fee class action lawsuits that charging the extra fee for the loyalty programs not only violates their franchise contracts but also violates the Florida’s Deceptive and Unfair Trade Practices Act. The Wyndham franchisee class action lawsuit is seeking more than $260 million in damages, and the Choice franchisee class action lawsuit is seeking more than $225 million in damages.
Wyndham Worldwide Inc. includes the brands Days Inn, Ramada and Super 8. Choice Hotels International Inc. includes the brands Clarion and Comfort Inn.
The Wyndham and Choice rewards fees class action lawsuits were filed in the United States District court in Orlando, Florida last month.
Updated January 12th, 2010
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4 thoughts onWyndham & Choice Hotels Franchisees File Class Action
I just recently paid 314.00 to echno lodge for a one night stay that I booked through choice hotels com and so far I have no one refunding my money or helping me at all I received a email statement for a over night stay of 117.09 and a 251 .00 balance!! I’m so pissed off the echno lodge told me it’s 54. 00 for one night stay 10 for a pet and taxes and fees . But the bill said 50 for a pet one night stay because it was a weekend ! That’s not what they advertise ! Ecno lodge blamed it on choice hotels !
Choice hotels blame it in enco lodge and I’m out 314.00 for one night stay at a dirty filthy room I cleaned all night long !!!
At Spokane Washington room number 219 it’s sparkly cleannow there was blackold the tv never worked the wi fi never worked and the cops were there at midnight looking for people !! The front desk hung up on me several times because I didn’t understand it’s not ecno lodge it’s choice hotels .I don’t care I want my money I was charged five nights stay but only stayed one night ! Choice hotels even made me drive back to the hotel to talk to reservations and make sure I wasn’t lieing that u really checked out which I did but I still am.waiting for my refund it been 6 working business days now! I’m hot !!! Not a good way to run any kind of business or company franchise’s!!!!!!!!!!!!!!!!!!
Its a scam. I hope they have to pay. I have two choice properties and almost every customer has info on their database and they charge 5%. Irrespective of customer even knowing about his membership they collect 5%. Also te create deceiving incentives for front desk to sign up people and pay even if the rates didn’t qualify for any rewards.
I’,m Dwain Alexander and I’m a Wyndham owner for about 10 years It’s paid off and I would like to sale it or get any part of my money back maybe you can help me all these other Company’s that will offer to sale it is just a big Ripp Off they take your money but they would never sale it. Is there any way I can get atleast half my money back. Maybe you can help me.
Im a super 8 owner and would like to know how to get involved in this I’m sick and tired of Wyndham taking all of our money and representing us poorly how can I get involved sincerely RICKY REDEKER