Booking Holdings has reach a $9.5 million settlement with
the state of Texas over a lawsuit alleging the company engaged in deceptive
"junk fee" practices, Texas Attorney General Ken Paxton announced.
The lawsuit alleged that Booking Holdings—which operates
Booking.com, Priceline.com and Kayak.com—drew in customers with
"artificially low room rates that were not actually available" by
grouping hotel fees in with taxes and fees that were not displayed until
checkout, giving it an advantage over companies that included those fees in
initial room prices. Per the settlement, Booking has agreed to display any such
fees on hotel room prices upfront, according to Paxton.
In a statement, a Booking Holdings spokesperson said the
settlement did not include an admission of wrongdoing and was reached to avoid
prolonged litigation.
"Booking Holdings has long supported a clear national
standard for displaying total prices, and we remain committed to transparency
and providing travelers with accurate information," according to the
statement. "While resort fees are typically set and retained by hotel
partners, we are aligned with recent Federal Trade Commission efforts to bring
greater consistency to price displays."
Former Federal Trade Commission director Tony DiResta, who
now chairs the consumer protection defense and compliance team for law firm
Holland & Knight, said he expected to see an increase in such settlements
in the coming years.
"The issue of hidden fees or misleading pricing is
absolutely on the front burner for state AGs," he said in a statement
provided to BTN. "This is a popular issue in both blue and red states, and
it continues to be a focus at the FTC."
Paxton said the settlement is the largest amount received by
a state from a hotel or online travel agency related to junk fee practices. He
said he previously has reached agreements on fee transparency with Marriott,
Omni, Choice Hotels and Hilton.