Omni Hotels Class Action Lawsuit Alleges Drip Pricing Scheme

Omni Hotels faces a class action lawsuit accusing the company of raising costs from hotel price listings through a “drip pricing” scheme involving resort fees.

Plaintiff Nantille Charbonnet says that she and other consumers were deceived by Omni Hotels with hotel price listings. Allegedly, the hotel operator adds undisclosed resort fees to nightly hotel prices – resulting in higher prices than what was advertised to consumers.

“Consumers see a lower advertised base rate for their rooms but end up paying a higher price and are compelled to pay a higher rate that was not disclosed at the outset,” the Omni Hotels class action lawsuit states.

Charbonnet allegedly stayed at an Omni Hotels location in San Diego a year ago in September 2019. After she checked out of the hotel and paid her bill, the plaintiff says she discovered that she was charged a resort fee during her stay. According to Charbonnet, Omni Hotels charges these fees in a variety of other cities across California including Los Angeles, Rancho Mirage, Carlsbad, and San Francisco.

The class action lawsuit describes these charges as a hotel price “drip pricing” scheme. Drip pricing involves withholding mandatory fees in initial price estimates. Later, when it is time to pay for a service such as a hotel room, fees and taxes are “dripped” on one by one to raise prices.

The Federal Trade Commission (FTC) has reportedly warned about these schemes in relation to hotel price listings. In fact, in 2012, the federal regulator reportedly issued a warning to the hotel industry – informing hotels that advertised listings should include both the nightly cost of a room and any resort fees they will have to pay.

However, despite this warning, Omni Hotels has allegedly continued with their drip pricing scheme.

“Omni charges consumers undisclosed resort fees in addition to posted rates,” Charbonnet contends. “By waiting for hotel guests to check in and/or reserve before levying resort fees, Omni constrains consumers options and consumers are prevented from obtaining the offer they expected at the advertised price.”

Charbonnet’s Omni Hotels class action lawsuit includes claims under California’s Consumer Legal Remedies Act, Unfair Competition Law, and False Advertising Law. According to the plaintiff, the resort fees charged despite lower hotel price listings are deceptive – therefore violating these consumer protection laws.

In her Omni Hotels class action lawsuit, Charbonnet seeks to represent a Class of consumers who stayed at an Omni location in California within the last four years. On behalf of herself and this putative Class, Charbonnet seeks actual damages, restitution, injunctive relief, attorneys’ fees, and other relief.

Charbonnet originally filed her complaint in California state court, but Omni Hotels removed the case to the Southern District of California on Sept. 10.

This is not the first time Omni Hotels has faced legal action over their resort fees.

In June 2018, another consumer filed a class action lawsuit against the hotel operator, arguing that he was charged a $30 resort fee which was undisclosed in the $269 hotel price rate which he saw advertised.

The plaintiff argues that he was deceived by the lower hotel price listed online and may have found a better deal if he was aware of the hidden fees.

Other hotel operators have faced similar claims. Last year, Marriott faced a class action lawsuit from one consumer who allegedly noticed a drip pricing scheme after staying at more than 45 Marriott hotels and resorts.

The plaintiff argued that Marriott hid extra fees under a “USD Taxes and Fees” category in a hotel invoice. Because of this, he was allegedly unaware that he was charged extra fees.

Even if he were to notice the fees, the plaintiff argued that he and other consumers may assume that the charged resort fees were government imposed. However, this is allegedly not the case. Instead, the resort fees are reportedly charged by Marriott to increase the price of their hotel or resort rooms without alerting the customer.

In many of these cases, consumers argue that they would not have booked the hotel rooms or would refused to pay the fees if they were not deceived by hotel operators’ drip pricing schemes.

Did you stay at an Omni Hotels location? Did you pay a higher hotel price than expected? Share your experiences in the comment section below.

Charbonnet and the proposed Class are represented by Adam Rose of Frontier Law Center.

The Omni Hotels Hotel Price Class Action Lawsuit is Nantille Charbonnet v. Omni Hotels and Resorts, et al., Case No. 3:20-cv-01777-CAB-DEB, in the U.S. District Court for the Southern District of California.

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