Attor­ney Gen­er­al Ken Pax­ton Secures a $1.25 Mil­lion Set­tle­ment with Hyatt Hotels, Forc­ing the Com­pa­ny to Stop Hid­ing Added Fees

Attorney General Ken Paxton secured a $1.25 million settlement with Hyatt Corporation (“Hyatt”) for violating Texas consumer protection laws by marketing hotel rooms at prices that were not available to the public as advertised. 

Attorney General Paxton’s lawsuit against the company alleged that Hyatt engaged in illegal practices by charging consumers mandatory and unavoidable fees in addition to daily room rates. Even when these fees were eventually disclosed, they were done so in a manner that was unlikely to alert consumers that the initial rate that attracted them was not, in fact, the actual price of the room. This gave Hyatt an unfair and unlawful advantage over honest companies that were transparent in displaying the actual price of rooms. 

The settlement’s terms require Hyatt to disclose any fees added on to a hotel room’s price, allowing consumers to more efficiently shop and compare prices. 

“Texas consumers should never be misled by hotel companies attempting to hide fees and charges,” said Attorney General Paxton. “Any hotel company or booking site that tries to mislead and take advantage of Texans will be exposed and will pay a heavy penalty for their deception.” 

This settlement marks Attorney General Paxton’s sixth settlement related to these deceptive pricing practices for online hotel reservations. Previously, he reached agreements with Marriott, Omni, Choice Hotels, Hilton, and Booking.com to ensure that online hotel reservation practices are transparent and companies disclose all fees to consumers. Additionally, his efforts helped spur new federal regulations cracking down on these “junk fees” practices.