Booking Holdings to Pay $9.5M in Hidden Fees Lawsuit with Texas
Booking Holdings, the parent company of Booking.com, Priceline, and Kayak, has agreed to a $9.5 million settlement in a lawsuit brought by Texas Attorney General Ken Paxton.
The state claimed Booking misled consumers by displaying low room rates upfront while withholding mandatory destination, amenity, or utility fees until checkout. Some charges exceeded $100 per day.
This settlement aligns with broader regulatory efforts, including the Federal Trade Commission’s “Junk Fees Rule,” which requires upfront and transparent price disclosures in travel and ticketing.
Going forward, Booking must disclose the total price, including all mandatory fees, from the outset.
The company did not admit wrongdoing and stated it remains dedicated to transparency and providing accurate information.
In July, the LA City Attorney filed a lawsuit against Airbnb, accusing the company of price gouging across at least 2,000 listings during January’s wildfire emergency. Airbnb denied wrongdoing and claimed compliance with emergency rules.
As a result, LA County extended the emergency rent-gouging rules through August 30, 2025, to protect vulnerable residents.
