Sarah Gilbert  |  April 17, 2014

Category: Consumer News

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resort fees illegalConsumers who checked into a number of resort hotels across the U.S. and its vacation territories — such as Hawaii, Las Vegas, Puerto Rico, Orlando, Phoenix and California — may have had a surprise when the bill was slipped under the door.

“Resort fees,” meant to recoup the costs for hotel spas, gyms, pools and other amenities, were charged by a number of hotel chains, including Fairmont, Hyatt, Hilton, Marriott, Starwood, and Intercontinental Hotel Group.

The Federal Trade Commission (FTC) in 2012 held a conference on so-called “drip pricing,” the practice by which companies “advertise only part of a product’s price and reveal other charges later as the customer goes through the buying process.” When these fees are optional, such as the upgrades on the purchase of a car, the consumer has a chance to protest, but when they’re mandatory, such as the resort fees in question, the consumer has far less power.

After the conference, the FTC scrutinized the practice of charging “resort fees” for everything from morning newspapers to internet access, in addition to more resort-like amenities such as pools, spas and exercise facilities. Consumer complaints had surfaced at the drip pricing conference, and the FTC was concerned enough to send a warning letter to 22 hotel companies, explaining that their “online reservation sites may violate the law by providing a deceptively low estimate of what consumers can expect to pay for their hotel rooms.”

Consumers have the right to know ahead of time what the bill will be, said FTC Chairman Jon Leibowitz.

“So-called ‘drip pricing’ charges, sometimes portrayed as ‘convenience’ or ‘service’ fees, are anything but convenient, and businesses that hide them are doing a huge disservice to American consumers,” he said.

Hotels’ upselling tactics are well known, for everything from minibar purchases to the cost to store a bag with the bell hop. In the days before ubiquitous mobile phones, hotels made a mint charging $2 or $3 a minute for phone calls. But all these were still optional.

The FTC’s problem, the agency said, was with customers who made reservations before being alerted to the resort fees, and then only discovered them upon checking in or even not until checkout. In some cases, said the FTC, the customers paid for their hotel room ahead of time and then were forced to pay the fees once they arrived.

Such resort fees may even result in resort fee class action lawsuits as more and more consumers become frustrated with the practice, especially in light of the statements from the federal agency.

File a Resort Fees Class Action Lawsuit Claim

If you’ve been subject to unexpected charges, especially those that you weren’t warned about in the reservation process, you could be eligible to pursue some remedy for the resort fees hoteliers have charged. Some consumers report having been required to pay the fees even though they didn’t need nor want the amenities they covered.

A resort fees class action lawsuit investigation has been launched to find customers who have found themselves subject to such unexpected charges. See if you qualify to join by submitting your information for a free and confidential review at the Hotel Resort Fee Class Action Lawsuit Investigation. Top Class Actions wants you to receive the fair legal representation you deserve. Act today!

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2 thoughts onResort Fees Charged to Consumers Spur FTC Warning

  1. renee culver says:

    I think fees should be charged on a “by use” basis. I’ve never used the gym or the internet. I might use thevpool weather and time permitting yet I have to pay weather I use the amenities or not.Some hotels the pool is closed? Some nights I have checked in at 1130pm and checked out by 8 am only use the bed and bathroom….ridiculous

  2. Paula says:

    reserved 2 rooms at Marriott in Denver paid for them thru priceline we stayed 7 days after leaving they hit my debit card for $500 per room for smoking in the room . no where in that room did it have a no smoking sign I explained to them that we did not smoke and they said they had evidence and if I didn’t pay it it would be damages for the room. One of the rooms were for our children. I finally just paid it. But why would I check into a non smoking hotel if I smoked.

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