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Hilton Sued By Nebraska AG Over 'Deceptive and Misleading' Resort Fees

July 24, 2019
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3 min read
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Hilton Sued By Nebraska AG Over 'Deceptive and Misleading' Resort Fees
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Nebraska's attorney general announced that he plans to sue Hilton, alleging that the chain's "deceptive and misleading pricing practices" violated Nebraska’s consumer protection laws."

The lawsuit wants to make Hilton advertise the true prices of its hotel rooms upfront, pay civil penalties, and "provide monetary relief to harmed Nebraska consumers."

"For years, Hilton has misled consumers in Nebraska regarding the true cost of certain Hilton hotel rooms," Attorney General Doug Peterson (R) said in a statement on July 23. "They failed to heed warnings from the Federal Trade Commission and the mounting complaints from their own customers."

Hilton, for its part, said that customers are informed about resort fees prior to booking.

"Resort fees are charged at less than two percent of our properties globally, enable additional value for our guests, and are always fully disclosed when booking through Hilton channels," a Hilton spokesperson told The Points Guy in a statement. "We have not yet been served the related documents, so will take the opportunity to review these before providing additional comment.”

Nebraska's AG isn't the only one taking a hotel chain to court.

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Earlier this month, D.C. Attorney General Karl Racine (D) sued Marriott, alleging that the hotel deliberately hid the true price of hotel rooms from consumers and charged hidden resort fees to increase profits.

"Marriott reaped hundreds of millions of dollars in profit by deceiving consumers about the true price of its hotel rooms," Racine said in a July 9 statement.

"Bait-and-switch advertising and deceptive pricing practices are illegal. With this lawsuit, we are seeking monetary relief for tens of thousands of District consumers who paid hidden resort fees and to force Marriott to be fully transparent about their prices so consumers can make informed decisions when booking hotel rooms," Racine continued.

As TPG's Katherine Fan noted after the Marriott suit, customers and third-party booking agencies have started pushing back against the fees. while Hilton and Hyatt allow customers to use points as a way to avoid paying a resort fee, Marriott charges resort fees on paid and award bookings.

Despite the suit, resort fees don't seem to be going away anytime soon, at least for Marriott.

In an interview with Linkedin earlier this month, Marriott CEO Arne Sorenson said, “I don’t think they’re going away,” and pledged to fight the lawsuit, calling it "wrong."

Featured image by WireImage

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

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  • Packed with credits foodies will enjoy
  • Solid welcome bonus

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  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.