MGM Resorts International is facing legal action due to its resort fees. They are specifically being sued for breaching the Consumer Protection Procedures Act through misleading and deceptive advertising.
Travelers United, a non-profit consumer advocacy group, filed the lawsuit. The suit presents multiple instances of MGM Resorts’ somewhat baffling marketing and advertising tactics.
Resort fees are not solely added to MGM Resorts hotel rooms. Most operators of Las Vegas casino-hotels incorporate this fee into the cost of their rooms. Often, these fees are not disclosed in the advertised room rates.
Various hotel operators incorporate resort fees into the price of the hotel room as compulsory charges for services provided by the hotel.
Misleading advertising from MGM?
The lawsuit highlights various deceptive advertising related to resort fees. The advocacy group initially claims that MGM Resorts deceives all prospective clients. They argue that the company falsely advertises overnight rates to customers and then introduces obligatory resort fees to the room rate later in the booking process.
A blog post also asserts that MGM Resorts deceives its most valuable customers, who are members of the M Life Rewards loyalty club.
MGM Resorts dispatches complimentary hotel room offers to guests, marketing them as “free rooms” without explicitly stating the associated resort fees. M Life Rewards members are subjected to a resort fee on these complimentary rooms, despite their promotion as having a $0 room rate.
Travelers United also asserts that the resort fees are combined with taxes in an attempt to make the fee seem like a compulsory government charge.
MGM Resorts isn’t the sole Las Vegas hotel company employing these strategies. It just turns out that this casino and hotel operator is the specific company involved in this lawsuit.
Regular casino patrons are aware that complimentary doesn’t equate to free. There are expenses associated with getting complimentary goods from a casino owner. Usually, patrons are given complimentary goods in return for the money they spend on gambling, food, beverages, and spa services at the venue.
Not the first resort fee lawsuit
MGM Resorts is not the inaugural hotel operator to be involved in a court case due to deceptive advertising regarding resort fees. The Marriott and Hilton hotel chains have previously faced legal action, brought forward by the Attorneys General of the District of Columbia and Nebraska respectively.
The lawsuits have not been successful as resort fees continue to persist. Nonetheless, increased focus on this issue may eventually lead to legislation that could outlaw resort fees in the future.
Travelers United, an advocacy organization, has filed a lawsuit against MGM Resorts. They aim to halt what they describe as misleading advertising by the resort. Additionally, they are seeking punitive damages from MGM Resorts.
Virgin Hotels Las Vegas will open without resort or parking fees
When Virgin Hotels Las Vegas opens later this month, it will not charge for either resort or parking fees, unlike most Las Vegas hotels that do impose these charges.
In addition to these charges, the company will not impose any fees for wifi access. It’s worth noting that before majority of the casinos in Las Vegas started offering free wifi, some business travelers would refer to the resort fee as a “wifi fee”, given that they did not utilize the other services.
Around the world, Virgin Hotels have a global policy called “No Nickel and Diming”. Before taxes are included, guests will pay the price that is advertised.
The hotel operator has also pledged to provide minibars in the hotel rooms at “street prices.” Unlike most hotels that significantly inflate the prices of drinks and snacks in the room, Virgin Hotels Las Vegas will make these items available to guests at regular prices.
The property will open on March 25.
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