For legal practitioners within the travel and accommodation industry, a new development concerning “drip pricing” has been observed. In a recent case, Choice Hotels International, Inc., one of the most prominent hotel chains globally, was cited for employing “drip pricing,” a practice described as omitting mandatory fees from advertised room rates.
This omission, which subsequently led to unexpected additional costs for their guests, consequently resulted in the hotel chain settling with Colorado’s Attorney General Phil Weiser. This settlement was an effort to resolve allegations of violation against the Colorado Consumer Protection Act. It serves as a critical reminder for businesses within the accommodation and hospitality industry to ensure the full transparency of their advertised prices.
This information comes from the legal services publication JD Supra. Therein, it is noted that the alleged violations revolve around the practice of not including all compulsory fees within the presented prices. This practice can result in customers facing unexpected charges, usually referred to as “hidden fees,” upon final settlement.
Legal practitioners should note this case, as it sets a crucial precedent regarding consumer protection in relation to pricing transparency offered by businesses within the hospitality industry. It emphasizes the importance of making all rates and fees upfront to uphold consumer rights and trust, underpinning the necessity of a candid and forthcoming pricing structure as well as the potential legal implications of failing to do so.
Businesses and legal practitioners must be aware of the potential violations associated with drip pricing practices, as observed in this case. The settlement of Choice Hotels International, Inc. underscores the Boston legal firm Cozen O’Connor’s role in handling these allegations, further detailed in the JD Supra publication.
While the exact details of the settlement have not been publicly disclosed, this case serves as a timely prompt for business operators and legal advisors to ensure they are not involuntarily misleading their customers through their pricing practices, potentially violating consumer protection laws.