Booking Holdings has reached 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 -- operator of Booking.com, Priceline and Kayak -- 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 price.
Per the settlement, Booking has agreed to display any such fees 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," said 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 expects 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 had reached agreements on fee transparency with Marriott, Omni, Choice Hotels and Hilton.
Source: Business Travel News