Novi hotel reimbursing guests after ice storm price gouging complaint, AG says
Fallen tree branches following an ice storm in Berkley, Michigan, US, on Thursday, Feb. 23, 2023. Nearly 800,000 homes and businesses in Michigan lost power after an extreme ice storm tore down thousands of electricity lines, snapped utility poles an
NOVI, Mich. (FOX 2) - A Novi hotel accused of jacking up prices during an ice storm that knocked out power and forced Metro Detroiters to stay away from home will reimburse guests.
A guest at the Hilton Garden Inn made a complaint about alleged price gouging to Michigan Attorney General Dana Nessel's Office after staying at the hotel in February. This prompted an investigation.
The hotel maintains that it did not violate the Michigan Consumer Protection Act (MCPA) but will issue reimbursements, Nessel said. The AG's office called this an "amicable" resolution.
Michigan ice storm leaves behind scenes of beauty on Belle Isle
Belle Isle. Unpredictable weather. Pure Michigan.
The guest who made the complaint will receive a full refund, while guests who paid more than $200 per night between Feb. 23 and 26 will receive the difference between $200 and the rate they were charged.
Additionally, the hotel will reimburse the state $1,000 for the cost of the investigation.
Hilton Garden Inn also agreed to mandate for all employees with responsibilities for determining room rates an MCPA compliance training. This training is also mandated, for a term of two years, for all new hires with price-setting responsibilities at the Hilton Garden Inn in Novi. The hotel-provided training must be documented and include training on a process for receiving and responding to consumer complaints regarding their pricing.
"Price gouging during a severe weather event is disrespectful to your customers and charging grossly excessive prices is illegal," said Nessel. "As we prepare for another Michigan winter, I want businesses and consumers to know my office pays close attention to complaints about those who seek to turn consumer desperation into financial opportunity."
Report suspected price gouging here.