Luxury Pasadena hotel to pay $320,000 to settle Eaton fire price-gouging lawsuit

Langham Hotels Pacific Corporation, owner of the Langham Huntington Pasadena, has agreed to pay $320,000 to settle a lawsuit involving allegations of price gouging. The settlement includes $300,000 in civil penalties and $20,000 in investigative costs to the Los Angeles County District Attorney’s and Counsel’s Offices. The lawsuit alleged that the hotel violated California anti-price-gouging and unfair competition laws by charging guests more than 10 percent above regular rates during the Eaton and Palisades wildfires in early 2025.

Hotel management stated that an automated pricing tool caused unintended rate increases, which have since been reviewed and updated. The corporation noted that all affected guests have been refunded and that they donated over 1,100 complimentary room nights to support first responders and displaced residents during the crisis. As part of the settlement, the hotel must modify its automated pricing systems to prevent unlawful increases during declared states of emergency.

Los Angeles County District Attorney Nathan Hochman criticized the hotel for profiting from the tragedy, stating it is "reprehensible to overcharge and take advantage of wildfire victims." The settlement also requires the hotel to pay restitution to eligible guests, with at least $216,000 owed for the period between January and April 2025. Any refunds that cannot be issued directly to guests will be paid to the Los Angeles County Department of Consumer and Business Affairs.

(Source：Headtopics)