Brigette Honaker  |  July 18, 2019

Category: Legal News

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woman checking into Hyatt hotelAccording to a recent class action, Hyatt charges its customers extra, undisclosed fees despite representations about hotel room prices.

When looking for hotel reservations, many consumers check online booking sites to compare prices. Customers trust that these price representations are accurate and use the representations to dictate purchases.

Although consumers believe that hotel listings are accurate, Hyatt allegedly uses an unlawful trade practice known as “drip pricing” to advertise their hotel rooms.

By doing this, Hyatt allegedly hides a portion of their rooms’ daily rate by including that amount in a “resort fee” charge. This reportedly makes consumers believe that they are getting a lower daily rate when they are actually having to pay significantly more.

Plaintiff Harold Brower recently filed the Hyatt class action lawsuit over claims that the hotel has brought in hundreds of millions of dollars by engaging in drip pricing.

The Federal Trade Commission (FTC) has reportedly spoken out against drip pricing. The commission warned that drip pricing may violate consumer protection laws because it misrepresents the price of hotel rooms.

According to the FTC, “most prominent figure” which is provided up front “should be the total inclusive estimate” and “include […] any unavoidable and mandatary fees, such as resort fees.”

Members of Congress have reportedly expressed similar sentiments. The Hyatt class action states that in December 2015, 10 Congress members expressed concern that “resort fees allow hotels to mask the true price of a hotel room and reduce guests’ ability to compare costs and fully budget for a family vacation or business trip.”

These members of Congress reportedly said that this practice should be classified as “unfair or deceptive” and should be banned under the Federal Trade Commission Act.

Despite the opinions of regulators and lawmakers, Hyatt allegedly continues to engage in drip pricing.

Brower says he’s stayed at Hyatt properties several times within the last five years. Each time he stayed, he allegedly relied on hotel comparisons to choose his room. However, he reportedly was forced to pay an additional $20 to $40 “resort fee” when he stayed at Hyatt hotels.

“Mr. Brower was either unaware of the fees at the time he made his reservations, or he believed the fees were mandatory and in the nature of government-imposed taxes,” the Hyatt class action lawsuit claims. “Mr. Brower would not have agreed to pay the fees if he had understood at the time that they were really just a hidden portion of the advertised room rate.”

In his Hyatt class action, Brower seeks to represent a Class of consumers who were charged one or more resort fees at a Hyatt property.

The Hyatt resort fees class action lawsuit seeks compensatory damages, exemplary damages, statutory damages, incidental damages, consequential damages, actual damages, punitive damages, restitution, disgorgement, interest, court costs, and attorneys’ fees.

Brower and the proposed Class are represented by Frederick J. Klorczyk III and Joel D. Smith of Bursor & Fisher PA, and Michael J. McMorrow of McMorrow Law PC.

The Hyatt Fees Class Action Lawsuit is Brower v. Hyatt Hotels Corp., Case No. 1:19-cv-04724, in the U.S. District Court for the Northern District of Illinois.

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21 thoughts onHyatt Class Action Says Resort Fees Are Unfair

  1. Marie Kanning says:

    Hilton has always our families choice of hotels. Now that I heard about and then researched some of my past stays at Hilton, i am so disappointed and feel compensation is deserved.

    Marie Kanning

  2. Jay Rempo says:

    I have been charge “Resort fee” approximately 27 times..averaging $5-$20 per stay. very frustrating being charged N.j state sales tax, “Resort fee tax”.. municipal race… somtimes all these taxes are $25 extra per night

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