Hall v. Marriott International, Inc.

District Court, S.D. California·Decided November 1, 2021·No. 3:19-cv-01715·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 TODD HALL, et al., individually and on Case No.: 19-cv-01715-JLS-AHG behalf of all others similarly situated, 12 ORDER OVERRULING Plaintiffs, 13 DEFENDANT’S OBJECTION TO v. MAGISTRATE JUDGE’S ORDER 14 RESOLVING JOINT MOTION FOR MARRIOTT INTERNATIONAL, INC., 15 DETERMINATION OF DISCOVERY Defendant. DISPUTE 16

17 [ECF No. 107]

18 19 Presently before the Court is Defendant Marriott International, Inc.’s Objection to 20 Magistrate Judge Goddard’s Order Resolving Joint Motion for Determination of Discovery 21 Dispute (“Objection”) (ECF No. 107). For the reasons set forth below, Defendant’s 22 Objection is OVERRULED. 23 BACKGROUND 24 I. Allegations in the TAC 25 In this putative consumer class action, Plaintiffs allege that Defendant engages in 26 false and deceptive advertising in the way it represents the prices for its hotel rooms, 27 services, and amenities and assert causes of action on behalf of a putative class for: 28 (1) violations of the Consumers Legal Remedies Act (“CLRA”), Cal. Civ. Code §§ 1750 1 et seq.; (2) violations of the False Advertising Law (“FAL”), Cal. Bus. & Prof. Code 2 §§ 17500 et seq.; (3) violations of the Unfair Competition Law (“UCL”), Cal. Bus. & Prof. 3 Code §§ 17200 et seq.; (4) unjust enrichment/quasi contract; (5) negligent 4 misrepresentation; (6) concealment/non-disclosure; and (7) intentional misrepresentation. 5 (ECF No. 82 ¶¶ 103–67.) The factual allegations in Plaintiffs’ Third Amended Class 6 Action Complaint (“TAC”) relevant to the Court’s resolution of the instant matter are 7 summarized as follows: 8 Defendant is a multinational hospitality company that owns, manages, and 9 franchises at least 189 hotels and resorts worldwide. (Id. ¶¶ 11, 21.) Defendant advertises 10 its available rooms and daily room rates online through its own website and the websites 11 of third-party online travel agencies (“OTAs”), such as Priceline and Expedia. (Id. 12 ¶¶ 6–7.) When a consumer uses Defendant’s website to search for a hotel room by 13 destination and date, the website will list various hotels and rooms with matching 14 availability and provide the consumer with a quoted daily room rate. (Id. ¶ 23.) At this 15 initial stage, the quoted daily room rate for each hotel does not include or mention any 16 additional fees the consumer will be required to pay. (Id. ¶ 24.) Once a consumer selects 17 a particular hotel, Defendant’s website directs the consumer to another webpage that lists 18 the available rooms at that hotel, along with the daily rates for those rooms, in large, bold 19 font. (Id. ¶ 25.) This webpage also displays a light blue box at the top of the page with 20 small, blue, bold font that states that a “daily destination amenity fee will be added to the 21 room rate,” followed by the hours for the property’s concierge lounge—apparently linking 22 the destination amenity fee to use of the concierge lounge. (Id.) 23 Once the consumer selects a specific room from the selected hotel, Defendant’s 24 website brings the consumer to another webpage titled “Review Reservation Details.” (Id. 25 ¶ 27.) This webpage displays a picture of the room; the details of the reservation, such as 26 the reservation date, number of rooms, and guests per room; the quoted daily room rate; 27 and additional “USD Taxes and fees” to be charged. (Id.) There are also two drop-down 28 menus at the bottom of this webpage, one titled “Choose Room Features” and the other 1 titled “Summary of Charges.” (Id.) If the consumer clicks the Summary of Charges drop- 2 down menu, a breakdown of what charges are included in the “USD Taxes and fees” charge 3 appears: the “destination amenity fee” and “estimated government taxes and fees.” (Id. 4 ¶ 29.) By combining the amenity fee with tax payments in a generic heading of “USD 5 Taxes and fees,” Defendant misleads the consumer into believing the amenity fees are 6 government-imposed charges. (Id. ¶ 27.) Also included in the Summary of Charges 7 breakdown in smaller, lighter-colored font is a list of “Additional Charges,” including rates 8 for on-site and valet parking. (Id. ¶ 29.) Defendant does not inform the consumer what is 9 included in either the destination amenity fee (e.g., wifi, use of the concierge lounge, use 10 of the business center, etc.) or the government taxes and fees. (Id.) 11 Defendant further misleads consumers with inconsistent representations on its 12 website regarding what amenities are covered by the amenity fee or are offered 13 complimentary. (See id. ¶¶ 37–38.) For example, Defendant’s website may indicate for a 14 particular hotel that the amenity fee “includes high speed Internet/resort equipment 15 rentals/fitness classes and more.” (Id. ¶ 37.) However, Defendant’s website may 16 simultaneously advertise that fitness classes are “complimentary” and that the fitness center 17 is “free of charge for hotel guests.” (Id. ¶ 38.) 18 As with its own website, Defendant fails to include resort and/or amenity fees in the 19 quoted room rates advertised by OTAs. (See id. ¶ 40.) When a consumer searches for a 20 hotel room using the reservation system on Expedia, for example, the consumer receives a 21 quoted room rate that does not include or mention any resort or amenity fee. (Id.) When 22 the consumer clicks “Select your room” under the quoted daily room rate on Expedia’s 23 webpage, the consumer is directed to another webpage that again quotes the same rate 24 without inclusion or mention of a resort or amenity fee. (Id. ¶ 41.) If the consumer again 25 selects the quoted room rate, the consumer is directed to another webpage that displays a 26 “price summary.” (Id. ¶ 42.) This price summary includes: the quoted room rate; 27 additional “Taxes and Fees”; a notice stating, “Mandatory property fee: Collected by 28 property” with a link to “Details”; and a “Trip Total.” (Id.) Only by clicking on Details 1 does the consumer learn that he or she will be charged a “Resort fee” and what this fee 2 claims to include: beach loungers, fitness/yoga classes, sporting facilities and equipment, 3 internet access, and “[a]dditional inclusions.” (Id. ¶ 44.) Defendant, however, 4 simultaneously advertises on Expedia that consumers are afforded “Free Wifi” and 5 complimentary fitness classes and equipment. (Id. ¶ 45.) Further, the consumer cannot 6 discern whether they will be charged the Resort fee upon arrival at the hotel or whether the 7 Resort fee is already included in the “Trip Total.” (Id. ¶¶ 46; 50.) 8 Defendant also deceives consumers on OTA websites by misusing former price 9 comparisons. (Id. ¶ 51.) For example, Defendant may advertise a room rate on an OTA’s 10 website by putting a lower rate in large, bold font (the “bargain” rate or “bait” price) next 11 to a higher room rate in smaller, strikethrough font. (Id. ¶ 52.) Then, later in the vending 12 process, Defendant increases the bargain/bait price to include additional fees/taxes, 13 bringing the total room rate back up to the originally-advertised strikethrough price. (See 14 id.) 15 On October 16, 2017, Plaintiff Kevin Branca (“Plaintiff”) booked a room at the 16 Marriott Ritz-Carlton Kapalua Resort from Costco’s Travel website. (Id. ¶ 66.) 17 Subsequently in December 2020, Plaintiff discovered that Defendant had “misleadingly 18 advertised the hotel room rates and charges” he paid to stay at Defendant’s hotel “by hiding 19 and burying the resort and amenity fees, disguising them as ‘USD Taxes and fees’, 20 advertising discounted room rates which were based on falsely advertised bargain rates, 21 and switching the pricing from the advertised room rate to a different total payment for his 22 trip.” (Id. ¶ 67.) For example, Defendant charged Plaintiff a $35 “resort fee” per night for 23 his stay in Kapalua that he was unaware of when he booked his hotel.

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Hall v. Marriott International, Inc., (S.D. Cal. 2021).

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