Plaintiff accuses hotel group of deceptive pricing practices

A class action lawsuit has been filed against a prominent hotel group, accusing it of deceptive pricing practices that mislead consumers. On February 2, 2026, Miguel Frias lodged the complaint in the United States District Court for the Southern District of New York against Empire Hotel Group, L.L.C. The lawsuit alleges that the defendant engaged in “drip pricing,” a tactic where hotels advertise lower room rates and then add hidden fees at checkout, misleading customers about the true cost of their stay.

The complaint details how Empire Hotels, which operates several well-known establishments in New York City, including The Pearl and The Belvedere, has allegedly used these unfair trade practices for years. According to Frias, when consumers search for rooms on Empire Hotels’ websites, they are initially shown a lower price that excludes mandatory taxes and fees. It is only upon reaching the checkout page that these additional costs are revealed, significantly increasing the total price. This practice not only deceives consumers but also denies them the opportunity to compare prices fairly with other hotels.

Frias argues that such tactics violate New York’s General Business Law §§ 349 and 350, which prohibit deceptive acts and false advertising. He claims that he and others would not have booked rooms had they known the true cost upfront. The lawsuit seeks monetary damages, restitution, and injunctive relief to prevent Empire Hotels from continuing these practices. Additionally, Frias requests class certification for all individuals who booked rooms under similar circumstances across the United States.

The legal action also highlights broader regulatory concerns regarding drip pricing in the hospitality industry. Both federal guidelines from the Federal Trade Commission (FTC) and recent local regulations in New York City aim to curb such deceptive practices by requiring clear disclosure of total prices upfront. Despite these measures, Frias contends that Empire Hotels has continued its misleading strategies to boost profits at consumers’ expense.

Representing Frias is Philip L. Fraietta from Bursor & Fisher P.A., with Julian C. Diamond also listed as counsel for the plaintiff and putative class members. The case is presided over by judges at the Southern District of New York under Case ID 1:26-cv-00884.