Booking.com pays Texas $9.5 million over allegations of hidden fees in bookings

Texas Attorney General Ken Paxton has secured a significant victory for consumers, winning a $9.5 million settlement from Booking Holdings Inc., the operator of Booking.com, Priceline.com, and Kayak.com. The lawsuit, which alleged that Booking deceptively marketed hotel room prices by omitting mandatory fees, is the largest amount recovered by a state related to "junk fee" practices against any hotel or online travel agency.

Paxton argued that Booking obscured mandatory fees by grouping them with funds owed to the government as part of the "Taxes and Fees" line item at checkout. He stated that this practice was both unethical and illegal, and vowed to stand up for Texas consumers and ensure corporations comply with state law.

The settlement's terms require Booking to disclose any fees added to a hotel room's price upfront. This means that consumers will be able to more efficiently shop and compare prices, ensuring a fair and transparent market.

Paxton's efforts have not been limited to Booking. He has previously reached agreements with Marriott, Omni, Choice Hotels, and Hilton to ensure that hotel companies are transparent and disclose any fees upfront to consumers. The legal action initiated by Paxton against Booking Holdings Inc. has also forced hotel chains Choice, Hilton, and Marriott, as well as Booking Holdings itself, to disclose their practice of adding extra fees and to show these fees in the price display.

Texans, according to Paxton, deserve transparency when looking at prices. He reiterated that there will be accountability for any company that chooses to unlawfully mislead consumers. His efforts have also helped spur new federal regulations cracking down on "junk fees."

Paxton stated that deceptively hiding fees is not only unethical, but also illegal. He enticed consumers with artificially low room rates that were not actually available, giving Booking an unfair and unlawful advantage over honest companies that were transparent in displaying the actual initial price of rooms.

The settlement marks a significant step towards ensuring that consumers are protected from deceptive practices in the online travel industry. It serves as a reminder that corporations must comply with state laws and provide transparent pricing to consumers.