Texas Attorney General Ken Paxton secured a $1.25 million settlement with Hyatt Corporation on Monday, forcing the hotel chain to stop hiding mandatory fees from customers.
The agreement marks the latest victory in Paxton’s campaign against deceptive hotel pricing practices that have cost consumers millions in unexpected charges.
Hyatt allegedly violated Texas consumer protection laws by advertising room rates that weren’t actually available. The company tacked on mandatory fees after attracting customers with lower advertised prices.
Even when Hyatt disclosed these fees, they buried them in ways unlikely to alert consumers. This gave the chain an unfair advantage over competitors who displayed honest pricing upfront, according to a press release from Paxton’s office.
“Texas consumers should never be misled by hotel companies attempting to hide fees and charges,” Attorney General Paxton said in the news release. “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.”
Under the settlement, Hyatt must clearly disclose all fees added to room prices. This allows consumers to accurately compare costs across different hotels.
This marks Paxton’s sixth settlement targeting hidden hotel fees. He previously reached agreements with Marriott, Omni, Choice Hotels, Hilton, and Booking.com.
Paxton’s efforts helped spur new federal regulations cracking down on “junk fee” practices. His office continues to pursue companies that allegedly deceive Texas consumers through misleading pricing tactics.
