NEW YORK, May 16 (Reuters) – The state of Texas and Marriott International Inc (MAR.O) entered into a voluntary agreement on Tuesday to prominently display all “resort fees” and increase price transparency in advertising and the booking process.
Texas Attorney General Ken Paxton alleges that hotel companies are engaging in fraudulent and anti-competitive practices by misleading consumers with ads that prevent comparison shopping and charging millions of dollars in hidden fees.
“In recent years, travelers have been surprised with costs far in excess of the room rates they thought they booked,” Paxton said in a statement.
In its voluntary agreement with Texas, Marriott denied that it misrepresented room rates, mandatory fees, or total price in its advertising, nor violated Texas consumer protection law.
The hotel operator did not immediately respond to a request for additional comment.
Marriott has voluntarily agreed to disclose all “resort fees” and the total price of rooms as the most prominently displayed price, according to a statement from Paxton.
“Marriott is now taking proactive steps to promote price transparency. Other major hotel chains, on the other hand, have defended their deceptive practices and will face the full force of the law for their actions,” said Paxton.
On Monday, the state also filed a lawsuit against Hyatt Hotels Corp. (HN) for allegedly violating Texas consumer protection laws by misleading consumers with marketing and charging hidden fees.
In a petition Paxton said the US-based Hyatt failed to include all mandatory fees in advertised room rates, preventing comparison shopping and charging hidden fees, amounting to millions of dollars in fraudulent charges.
Hyatt did not respond to a request for comment on Paxton’s lawsuit.
Reporting by Doyinsola Oladipo in New York; Edited by Bill Berkrot