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Tuesday, April 30, 2024

AG Ferguson: Rocketmiles Must Pay Washingtonians $300,000 Over Hidden Fees

Washington State Attorney General Bob Ferguson

OLYMPIA — Attorney General Bob Ferguson announced that, as a result of his office’s multiyear investigation into online travel agency Rocketmiles, Washington consumers can now file claims to receive their share of a $300,000 recovery.

According to the Attorney General’s Office (AGO), from May 1, 2015 to December 5, 2016, the company charged hidden fees on more than 8,000 transactions in Washington, even though they told consumers they charged the same rate as booking directly with a hotel or a competing travel agency.

This is the latest action under Ferguson’s Honest Fees Initiative. With this action, the Honest Fees Initiative has recovered nearly $8.3 million total.

Eligible consumers will receive $20 per transaction with Rocketmiles, the average amount of the hidden fees Rocketmiles charged from May 1, 2015 to December 5, 2016. Each individual can file a claim for up to two transactions, or $40. Consumers who paid these hidden fees are eligible to receive money from the recovery if:

  • They lived in Washington and they booked any hotel with Rocketmiles, or
  • They booked a hotel in Washington, regardless of where they lived.

To file a claim, visit www.WARocketmilesRefund.com to fill out a form. All claims must be submitted on or before September 29, 2020. For questions about the claims process, please visit www.WARocketmilesRefund.com for more information.

“Rocketmiles promised Washingtonians one price and then charged another,” Ferguson said. “Thanks to our multiyear investigation, Rocketmiles stopped its practice of hiding fees, and will pay $300,000 to Washingtonians who paid the dishonest fees. If you believe that a company has charged dishonest fees, please contact my office and help us eliminate hidden fees.”

Rocketmiles is an online travel agency that provides hotel booking services similar to Expedia, Priceline, and Hotels.com. Rocketmiles, unlike many of its competitors, also awards airline miles to consumers who book hotels through their website.

The AGO claims thattrom May. 1, 2015 to Dec. 6, 2016, the company advertised online that consumers would “pay the same rates” booking a hotel with Rocketmiles as booking directly with a hotel or with a competing travel agency. The Attorney General’s investigation found that, contrary to its claims, Rocketmiles charged consumers an additional fee on its transactions, which could make some of its bookings ultimately more expensive than its competitors.

According to the AGO, this additional fee was lumped in with general “Taxes and Fees,” an amount shown only toward the end of the booking process. Rocketmiles gave no additional information or itemization for these “Taxes and Fees,” even though the company charged an average of $20 more than the required taxes for a particular booking. The AGO alleges that the company did not disclose this extra fee to consumers, nor explain why the fee was charged.

According to the AGO’s findings, during that time period, the company added this fee to 8,663 transactions in Washington even though it was advertising that consumers would pay the same hotel rates. About 1,800 transactions included people booking hotels in Washington, and more than 6,000 transactions were from Washington consumers using the Rocketmiles website to book hotels.

The Attorney General’s Office began its three-year investigation into the company in 2016. As a result of the investigation, Rocketmiles must stop its misleading conduct and must disclose additional fees to consumers before a transaction is completed.

In order to avoid a lawsuit from Ferguson, Rocketmiles has paid the office $300,000, which includes full consumer restitution, claims administration costs, and attorney’s costs and fees. Rocketmiles is also legally barred from using deceptive advertising about hotel pricing, including fees.

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