Tag Archives: Advertising

Hospitality Industry Legal Update: “Class Action Lawsuit Goes After Hotels That Fail to Disclose Resort Fees”

“Brian Kabateck, an attorney for Brin, said he has heard from many hotel guests who have groused about being surprised by resort fees on their hotel receipts. “This is really an insidious practice,” he saidresort fees lawsuit…Although the U.S. Department of Transportation regularly imposes fines against airlines that fail to disclose the full airfare, there may be too many hotels in the U.S. for the Federal Trade Commission to enforce the disclosure law on hotels, Kabateck said.”

If you have ever glanced at your hotel receipt only to be stunned to see an unexpected $28 resort fee, help may be on the way.

A Studio City man has filed a class-action suit against a Las Vegas casino, claiming that the resort is guilty of false and misleading advertising for failing to clearly disclose a mandatory resort fee at the time that he booked the room.

The practice is not unique to Las Vegas.

Undisclosed resort fees are such a prevalent problem that the Federal Trade Commission sent out a letter to 22 hotel companies in 2012, warning that their online reservation sites “may violate the law by providing a deceptively low estimate of what consumers can expect to pay for their hotel rooms.”

For more: http://lat.ms/1HN6ia9

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Filed under Crime, Guest Issues, Hotel Industry, Management And Ownership, Risk Management

Hospitality Industry Legal Risks: Kentucky-Based Restaurant Group Faces "Telephone Consumer Protection Act" Class-Action Lawsuit For "Unsolicited Text Message Advertising"

“…each alleged violation of the act, which consists of a brand sending an unsolicited advertisement via phone call or text message without prior consent, carries up to $500 in statutory damages…text messages allegedly were sent to thousands of Papa John’s customers without their consent because OnTime4U obtained the cell phone numbers of customers from the implicated franchisees…”


A U.S. District Court judge in Seattle has certified a class-action lawsuit against Papa John’s International Inc., calling for as much as $250 million in damages for the alleged transmission of 500,000 text messages to consumers who claim they did not consent to receive such texts.

Three named Papa John’s customers and potentially many more are suing the Louisville, Ky.-based operator or franchisor of 4,000 Papa John’s Pizza restaurants for allegedly violating the Telephone Consumer Protection Act.

The lawsuit, first filed in February by Washington state resident Maria Agne, stems from text messages Agne claims she received without her consent in April 2010. The texts, which promoted Papa John’s products and offers, allegedly came from marketing services provider OnTime4U, which had contracted with several Papa John’s franchisees in the Pacific Northwest.

OnTime4U allegedly indicated to the franchisees — who operate as many as 21 Seattle-area units in Rain City’s case and 12 Portland, Ore.-area restaurants in Rose City’s case — that those messages would not be considered spam or violate the TCPA because those customers had previously ordered a pizza from the franchisees, establishing an “existing business relationship,” which exempts calls and texts from oversight of the TCPA.

According to Coughenour’s order, Kevin Sonneborn, franchisee of PJ Sound Pizza LLC, testified that customers were not asked for their permission to send text messages before their phone numbers were given to OnTime4U.

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Filed under Guest Issues, Labor Issues, Liability, Management And Ownership, Risk Management

Hospitality Industry Social Media Risks: Hotel Management Must Asses Legal Risks Related To All Advertising Media Including Trademarks, Copyrights, Privacy And Data Security

“…from a risk-management and legal perspective, social media public relations, marketing and advertising efforts frequently present legal risks that are not always fully appreciated either by managers and directors, or those charged at the operations level with implementing the plans…”

The potential legal risks are wide-ranging and cover areas such as trademarks and copyrights, rights of publicity and privacy, data security, labor and employment issues, and the like. They also include compliance with the rules and regulations of state and federal agencies, such as the Federal Trade Commission.

  •  The potential legal risks are wide-ranging and cover areas such as trademarks and copyrights, rights of publicity and privacy, data security, labor and employment issues, and the like.
  • There is no reason not to proactively review the avenues of social media and begin the process of developing guidelines to mitigate risk. 
  • Fundamentally, a significant number of arising issues are no different than they are in traditional advertising mediums and require nothing more than policy tweaking.

For more: http://www.hotelnewsnow.com/Articles.aspx/6715/How-to-manage-legal-risks-of-social-media

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Filed under Guest Issues, Insurance, Labor Issues, Liability, Management And Ownership, Privacy, Risk Management, Technology, Training