Drip Pricing Can Lead to Unexpected Drain on Hotel Guests’ Bank Accounts

Cozen O'Connor
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  • Choice Hotels International, Inc. settled with Colorado AG Phil Weiser to resolve allegations that the company violated the Colorado Consumer Protection Act by employing “drip pricing”—omitting mandatory fees from advertised room rates.
  • Under the terms of the settlement, Choice must fully disclose fees in connection with advertised room rates, and enforce third party compliance regarding room rate transparency.
  • We have previously reported on a lawsuit filed by the Texas AG’s office against a travel reservation company for engaging in similar conduct.
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