The multinational hotel chain, Hyatt Hotels Corporation, one of the principal names in the United States’ hospitality industry with close ties to both commercial and Tribal gambling ventures, is confronting a fresh lawsuit lodged by Texas Attorney General, Ken Paxton. This new legal dispute accuses Hyatt–which oversees hotels not just within Texas, but across the globe–of withholding adherence to the consumer protection laws mandated by the state’s jurisdiction.
The alleged offence pivots on Hyatt’s promotion of hotel room rates at discounted prices, which, in reality, were not accessible to general consumers. The Attorney General’s proclamation contends that the hotel giant contravened Texan consumer protection laws by promoting room tariffs that, while readily portrayed in advertising, were unavailable in practice for ordinary customers.
Elevated Room Fees Masked by Low Advertised Rates
General Paxton stipulated that prospective guests from Texas were effectively hoodwinked by these deceptively low room tariffs. Furthermore, he suggested that this activity is a clear infraction of the statutory regulations currently in place in Texas. The General Attorney denounced Hyatt’s promotion of unattainable low rates as “duplicitous practices” and demanded an immediate cessation of such activity. “I refuse to remain neutral while Texan consumers suffer at the hands of Hyatt, or any hotel establishment who attempts to exploit customers through covert surcharges,” he pronounced.
“The deceptive tactics Hyatt has employed to veil the actual hotel room tariffs has effectively misled customers and breached Texas legislation.“
-Attorney General Ken Paxton
The lawsuit accuses Hyatt of deceptively advertising room rates, only to subsequently augment these rates with unavoidable, compulsory charges, such as destination fees, amenity fees, and resort fees, to name a few.
These additional costs were inconspicuously appended to the initial room rates, effectively escalating the overall cost. It is also alleged that Hyatt imposed these fees onto its customers irrespective of whether they availed the associated amenities or not.
“When these fees were finally made explicit, it was done in such a fashion that consumers may not be aware that the initial room rate that intrigued them was, in fact, not the final price tag for the room,”
Paxton pointed out in a statement
This legal offensive coincides with the ongoing endeavour by legislators in the state to broaden the gambling opportunities for citizens of Texas. Reflecting on this development, the Kickapoo Tribe, operators of the Lucky Eagle Casino, have expressed concerns over potential bankruptcy.
They have recently conveyed concerns that an expansion of statewide gambling activities could drastically diminish the Tribe’s revenue. This proposed expansion of gambling facilities in Texas is, however, yet to gain momentum as it requires approvals from both the House and Senate, prior to being put to a vote among the populace of the state.
