Published: 11-14-08
Motel 6 – Harlingen Best Western Las Palmas Inn cited for illegally raising rates
AUSTIN -- Texas Attorney General Greg Abbott today charged Motel 6 - Harlingen and Best Western Las Palmas Inn with unlawfully increasing room rates during Hurricane Dolly. According to the state’s enforcement actions the defendants charged excessive or exorbitant rates in an attempt to illegally profit from a declared disaster.
On July 22 2008 with Hurricane Dolly approaching the South Texas coast Gov. Rick Perry issued a disaster declaration. As a result federal state and local officials urged Gulf Coast residents to evacuate certain areas as soon as possible.
The Governor’s disaster declaration triggered special provisions of the Texas Deceptive Trade Practices Act which prohibit vendors from selling or leasing fuel food lodging medicine or other necessities at an excessive or exorbitant rate.
“The defendants are charged with unlawfully increasing room rates at their hotels in an attempt to profiteer from Hurricane Dolly” Attorney General Abbott said. “To protect evacuees and other storm victims Texas law prohibits vendors from attempting to increase profit margins after the Governor issues a disaster declaration. An investigation by the Office of the Attorney General indicates these defendants raised their prices in violation of Texas law.”
Investigators with the Office of the Attorney General (OAG) uncovered pricing data that revealed Motel 6 – Harlingen increased room charges after the disaster declaration was issued. According to the investigators’ analysis the cost to stay in 34 of the defendant’s 49 rooms increased by 20 percent or more after a disaster was declared.
Similarly investigators revealed that Best Western Las Palmas Inn increased rates on 43 of 44 rooms. According to court documents filed by the state the cost of 21 of those rooms increased by 20 percent or more after the disaster declaration was issued.
The OAG is seeking civil penalties of up to $20000 per violation and up to $250000 per violation for victims over 65.
Texans who encounter price gouging should call the OAG’s consumer hotline at (800) 252-8011. Information collected is relayed directly to agency investigators. Texans may also report other disaster-related scams to the hotline including home repair scams and charity scams.
