Nebraska AG sues Hilton over resort fees ‘drip pricing’
The state of Nebraska is joining Washington DC in calling out the ‘deceptive drip pricing’ policies in the hotel industry.
After DC took aim at Marriott International, Nebraska attorney general Doug Peterson is targeting Hilton.
Peterson filed a lawsuit against Hilton, accusing it wilful deception in advertising rooms at artificially low rates, only to tack on resort fees later.
"For years, Hilton has misled consumers in Nebraska regarding the true cost of certain Hilton hotel rooms. They failed to heed warnings from the Federal Trade Commission and the mounting complaints from their own customers," Peterson said.
According to the suit, the FTC warned the hotel industry back in November 2012 that drip pricing may violate federal consumer protection law.
Peterson said Hilton charges ‘hidden’ resort fees at 78 properties in the US ranging from $15 to $45 per night.
In response, a Hilton spokesperson said the company is upfront about the fees and are ‘always fully disclosed,’ providing ‘additional value for our guests’ when booked through Hilton channels.
The Nebraska lawsuit is seeking corrective action to disclose the fees up front, pay restitution to previous customers and pay fines to the government.
This latest legal action is part of a coordinated investigation by the attorneys general of all 50 states and Washington, D.C. against multiple hotel chains.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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