Home > Company News

Marriott ‘reaped hundreds of millions of dollars’ through ‘drip pricing’ scheme, lawsuit says

Views : 1
Update time : 2019-11-25 00:04:41

Marriott ‘reaped hundreds of millions of dollars’ along ‘drip pricing’ scheme, lawsuit says originally appeared above abcnews.go.com

Washington D.C. is suing Marriott although alleged "price deception" at its drill of charging "resort fees" that aren't disclosed ought customers upfront while they are booking their rooms.

D.C. attorney mutual Karl Racine filed a lawsuit against the world's largest inn bind above Tuesday although allegedly reaping "hundreds of millions of dollars" using an unlawful drill called “drip pricing” -- at which fees are added ought an advertised price.

"This is a straight-forward pay deceit case," Racine's office said at the lawsuit. "For can least the final decade, Marriott has used an unlawful work drill called 'drip pricing' at advertising its inn rooms whereby Marriott initially hides a portion of a inn room’s daily estimate from consumers."

(MORE: Marriott says information breach can affect up ought 500 million Starwood inn guests)

Marriott, which owns 30 inn brands including Sheraton, W, Aloft, Renaissance, Westin and Courtyard, calls this "hidden portion" of the room estimate a “resort fee,” “amenity fee” and a “destination fee,” according ought the lawsuit.

"One key result of this pay deceit is that consumers shopping although a inn room above during healthful Marriott’s website, or an online expedition agency situation ('OTA') although Priceline or Expedia, are misled into believing a Marriott inn room is cheaper than it really is," the lawsuit says.

Racine's office alleges that Marriott acted deceptively at its wording approximately resort fees, adding them ought the "taxes and fees" portions of inn bills, which mean they can be collected by a government or municipality fairly than the inn company. The attorney mutual during healthful alleges that resort fees were no included at "total prices" above booking websites and online expedition agency sites, and that the company used smaller and lighter-colored fonts although identifying the fees above its site, according ought the lawsuit.

Legal regulation was taken against Marriott “following an inquiry by the Attorneys mutual at total 50 states and the district of Columbia regarding the pricing practices of the inn industry,” according ought the lawsuit.

Marriott declined ought comment specifically above the allegations.

“We don’t comment above pending litigation, nevertheless we exhibition dispatch ought continuing our discussions with other nation AGs,” a Marriott spokesperson told ABC News.

(MORE: Marriott faces $123 million show at UK although information breach)

Globally, Marriott owns, manages or franchises can least 189 hotels that accuse resort fees ranging from $9 ought $95 per day, according ought the lawsuit.

ABC News’ Taylor Dunn contributed ought this report.