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Luxury Hotel Settles Price Gouging Lawsuit | San Jose News

Luxury Hotel Settles Price Gouging Lawsuit | San Jose News

Published 3 weeks, 5 days ago
Description

A luxury hotel in Pasadena is paying $320,000 to settle a lawsuit after allegedly price gouging wildfire victims and guests during the 2025 Eaton and Palisades fires. The hotel’s automated pricing system reportedly generated inflated rates—over 10% above normal—during a state of emergency, sparking outrage as displaced residents sought refuge. While the hotel claims the pricing glitch was accidental and says it refunded guests and donated over 1,000 free nights to first responders, the settlement requires them to overhaul pricing systems and return at least $216,000 to affected guests. The district attorney emphasized that exploiting disasters is unacceptable and vowed to hold others accountable.

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