Oakland Co. Hotel Refunding Guests After Ice Storm Price Gouging: AG

NOVI, MI — A Novi hotel will reimburse some customers who stayed in a room during a massive power outage in February 2023 after Michigan Attorney General Dana Nessel accused the hotel of price gouging, according to the Attorney's General office.

Nessel began investigating the Hilton Garden Inn after a customer complained about the hotel's prices during a severe ice storm in late February 2023 that knocked-out power to thousands in the metro Detroit area.

The original complainant will receive a full refund, and that all consumers who paid a nightly room rate in excess of $200 between the 23rd and 26th of February 2023 will receive a refund amounting to the difference between $200 and the rate they were charged, plus applicable taxes, Nessel said.

In addition, the hotel will reimburse the state $1,000 for the cost of the investigation, Nessel said.

Hotel officials maintained they did not violate the Michigan Consumer Protection Act (MCPA), but reached an "amicable" resolution with investigators, Nessel said.

Hotel officials also agreed to a MCPA compliance training within 60 days for all employees with responsibilities for determining room rates, including education that the MCPA prohibits "charging the consumer a price that is grossly in excess of the price at which similar property or services are sold."

The training is also required, 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," Nessel said. "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."