Luxury hotel accused of price gouging during L.A. wildfire will pay to settle lawsuit
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Set us as preferred A international luxury hotel corporation will pay $320,000 to settle a lawsuit alleging it unfairly raised prices on Pasadena guests in the wake of the Eaton fire last year, prosecutors said Monday.Langham Hotels Pacific Corporation — which owns dozens of high-end resorts around the globe including the Langham Huntington in Pasadena — raised prices on Pasadena guests by more than 10% from its normal posted rates after the wildfire, which claimed 19 lives and destroyed roughly 9,400 buildings.
Under California law, it is illegal to raise prices on goods by more than 10% after the governor’s office has declared a state of emergency.“It is reprehensible to overcharge and take advantage of wildfire victims who were in desperate need of housing as they fled their homes from raging fires last year,” Los Angeles County Dist.
Atty.Nathan Hochman said in a statement.
“During a time when our community was meant to come together to help those in need, Langham Hotels Pacific Corporation profited from other people’s tragedies.”The company did not admit any wrongdoing, according to the district attorney’s office.An attorney representing Langham did not immediately respond to an email seeking comment on Monday.
According to a stipulated judgment entered into on Friday between Langham and the county, the company “had an automated pricing system in place, but a cap on price increases was not immediately implemented resulting in hotel guests being charged prices in excess of those allowed.”While the district attorney’s office has not criminally prosecuted anyone for price gouging since the fires, both county and city attorneys have gone after alleged violators of the state law in civil court.L.A.City Atty.
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