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MGM Resorts sued for fraudulent resort fees

MGM Resorts sued for fraudulent resort fees
MGM Resorts International is being sued by Travelers United for charging customers deceptive resort fees in violation of the District of Columbia’s Consumer Protection Procedures Act (CPPA).

Many MGM properties claim the resort fee pays for a variety of amenities but during the COVID-19 pandemic.

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  1. The lawsuit states that resort fees are a violation of the District of Columbia’s consumer protection laws.
  2. Travelers United says advertising room rates without showing mandatory fees is false advertising.
  3. The potential outcome of the lawsuit is important as every MGM property in the United States charges resort fees.

Many MGM properties claim the resort fee pays for a variety of amenities but during the COVID-19 pandemic, many of those amenities were reduced or eliminated. Despite this, MGM never lowered the price of their resort fees. This shows that clearly there is no correlation between amenities and resort fees. Resort fees enable the hotel to lie about the price of the advertised room.

All MGM properties in the United States charge resort fees whether they are in National Harbor, Las Vegas, or Detroit. There is no correlation with the hotel being in a resort destination and the charging of resort fees.

Travelers United has long argued that hotels charging deceptive resort fees are doing so in violation of the law. The complaint filed by Travelers United addresses the general deception of resort fees in addition to the illegality of resort fees being charged on “comped” rooms. The suit also addresses that all DC taxpayers are impacted by these illegal fees when District government officials stay at an MGM hotel for work.

Travelers United demands an immediate end to the charging of hotel resort fees to District residents at any MGM property in the United States. This would include financial penalties paid for any District residents charged illegal hotel resort fees, a return of DC taxpayer money spent on deceptive hotel resort fees, and an end to MGM advertising complimentary rooms to District residents if they are charged a resort fee on that “comped” room.

Lauren Wolfe, Counsel for Travelers United states, said: “Resort fees are a clear violation of DC’s consumer protection laws. It is time to end the abhorrent practice of illegal resort fees by the hotel industry. All mandatory hotel fees must be included in the advertised price in order to be legal. MGM’s deceptive practice of hotel resort fees must end.”

Travelers United is a nonprofit tax-except 501(c)(3) organization whose mission is to identify and promote ways to improve and enhance travel for consumers across all modes of travel.

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About the author

Linda Hohnholz, eTN editor

Linda Hohnholz has been writing and editing articles since the start of her working career. She has applied this innate passion to such places as Hawaii Pacific University, Chaminade University, the Hawaii Children's Discovery Center, and now TravelNewsGroup.