(WBAP/KLIF) — The state of Texas is suing one of the nation’s largest hotel operators. Attorney general Ken Paxton filed a lawsuit against Hyatt Hotels Corporation for allegedly engaging in deceptive advertising practices in violation of the state’s consumer protection laws. The lawsuit specifies the practice of charging consumers mandatory hidden fees, such as resort fees or destination and amenity fees on top of the advertised room rate.
Paxton said, “Hyatt’s lack of transparency regarding hotel room prices has misled consumers and violated Texas law.” The state says Hyatt Regency Hill Country Resort in San Antonio potentially collected almost $7.5 million dollars in fraudulent charges last year alone.
While Paxton is suing one hotel giant, he has also signed a settlement agreement with another over the deceptive advertising practices. Marriot International recently signed a settlement, committing to proactively take steps to promote price transparency. Paxton says companies such as Hyatt are refusing to abandon the practice, and they “will be facing the full force of the law for their actions.”
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