MGM Resorts Faces Lawsuit for Unwarranted 'Resort Fees'

Travelers who booked an online deal for a terrific getaway only to discover upon arrival that they'd been saddled with triple-digit resort fees are taking a gamble that the law will be on their side. A new lawsuit against MGM Resorts International claims the charges are fraudulent, according to a recent report by Casino.org.

Travelers United filed the lawsuit in the District of Columbia, claiming several infractions, including "drip pricing," which implies that MGM or third-party sites don't reveal the inclusive price, resulting in "hundreds of millions of dollars" over the past decade.

The lawsuit also references obsolete amenities such as unlimited local and toll-free calls and that amenities such as pools, gyms and saunas have been closed due to the pandemic.

Travelers United seeks transparency in MGM Resorts advertising and, according to Casino.org, "pay damages to the organization for each violation proven during the trial."

"MGM Resorts International deceives customers," wrote Travelers United president Charlie Leocha on the organization's website. "They charge mandatory hotel fees beyond government taxes and fees. MGM adds to the deception by only listing a partial price as their room rate. This kind of unfair, deceptive, and dishonest pricing is against advertising law. The FTC is not doing its job to protect American consumers from unscrupulous hotel owners."

The Points Guy fact-checked and offered a sample breakdown of the additional charge, tax, as well as room rate discrepancy, also pointing out that it's been a decade since the Department of Transportation ruled that airfare rates must include all taxes and fees, stating "The double standard when it comes to hotel price advertising has always been frustrating and continues to dupe unsuspecting customers into thinking a stay will be cheaper than the reality of the final bill."