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In July 2014, a federal judge approved a settlement to a class-action lawsuit filed against Hotwire, Inc. Specifically, the complaint, which was originally filed in 2012, alleged that Hotwire misrepresents the price of its services. According to the complaint, consumers who used Hotwire.com to reserve rental cars were required to pay undisclosed fees – such as insurance fees and taxes – which significantly increased Hotwire’s estimated cost of the rental. According to the settlement terms, class members will be compensated at least $10 per day of the car rental. Additionally, Hotwire, Inc. is required to more clearly disclose that consumers may have to pay foreign taxes and insurances when they pick up a rental car. (Shahar et. al v. Hotwire, Inc. et. al, Case No. 12-cv-06027, N.D. CA.).
For more information about other travel-related class-action lawsuits and TINA.org’s coverage of the issue, click here.
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Companies should not be able to trap consumers into subscriptions that they do not want.
Getting out may not be as easy as signing up.
Experience the magic of AirPods 4 with Active Noise Cancellation in a new film by Spike Jonze, starring Pedro Pascal.
Ellen Lee, The New York Times