(WWJ) Some Metro Detroiters who paid steep rates for hotel rooms in Novi during the historic ice storm early this year will get some of their money back.
The Michigan Attorney General's Office on Friday announced that an agreement has been reached resolving an investigation into alleged price gouging during the storm, in late February 2023, by the Hilton Garden Inn in Novi.
The unprecedented weather event coated parts of Southeast Michigan with ¾ of an inch of ice, knocked out power to more than 680,000 homes and businesses across the state, and left Metro Detroit families scrambling to find a safe and warm place to stay.
When a customer issued a complaint about the high price of rooms at the Novi Hilton, the AG's office began looking into the matter.
On Wednesday, the Department of Attorney General filed an Assurance of Voluntary Compliance and Discontinuance in the 6th Circuit Court in Oakland County resolving the investigation.
The AG noted that while the hotel continues to maintain that it did not violate the Michigan Consumer Protection Act (MCPA) during the storm, this agreement amounts to "amicable" resolution of this case.
Under the terms of the deal, the hotel guest who complained will receive a full refund.
Also, any Novi Hilton customer who paid a more than $200 a night for a room between the February 23 and 26, 2023, will receive a refund amounting to the difference between $200 and the rate they were charged, plus applicable taxes.
“Price gouging during a severe weather event is disrespectful to your customers and charging grossly excessive prices is illegal,” said Attorney General Dana Nessel, in a statement. “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.”
In addition to the refunds, the Hilton Garden Inn in Novi agreed that all employees with responsibilities for determining room rates will undergo MCPA compliance training within 60 days, 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.” This training is also mandated, for the next two years, for all new hires with price-setting responsibilities at the Novi Hilton. The hotel-provided training must be documented and include training on a process for receiving and responding to consumer complaints regarding their pricing.
The hotel also agreed to reimburse the State of Michigan $1,000 for costs associated with investigating the alleged violation.
Michigan consumers who suspect price gouging are encouraged to contact the AG's Consumer Protection Team. An online form is available at this link.