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$130,000 Hotwire Class Action Lawsuit Settlement Reached


This is a settlement for the lawsuit.

San Francisco, CA: Hotwire has reached a settlement agreement which would end the consumer fraud class action lawsuit it currently faces. The lawsuit alleges the company misled its customers by providing an estimated price for international vehicle rentals that did not include insurance fees or taxes.

According to the lawsuit, class members made reservations through Hotwire' website, while in the United States, for car rentals in a foreign country and received a confirmation from Hotwire that included an estimated amount of taxes or fees of $0. The lawsuit, initially filed in 2012, asserted that Hotwire misinformed consumers about the taxes and fees they would be required to pay when renting cars internationally.

The complaint also alleged that the online travel booking company provided customers with an estimated trip total that excludedtaxes and fees customers would have to pay, indicating that the estimated taxes and fees would be equal to $0. Under the terms of the agreement, Hotwire will pay any administration costs exceeding $10,000, plus a total of $130,000, which will be distributed to class members. Daniel Shahar will receive a service award of $500.

Hotwire class members include persons and entities in the United States who, from November 27, 2008 until the present, made a reservation through the Hotwire website for a car rental in a foreign country and received a confirmation letter from Hotwire that include an estimated amount of taxes or fees equal to or less than $0.

The class has been limited to a specific list of 1,089 transactions by 1,076 persons, as identified in Hotwire' computer system.

According to the terms of the settlement, the amount distributed to class members will be not less than $10 per day of the car rental. If the settlement receives final approval, payments will automatically be mailed to class members.

The case is U.S. District Court for the Northern District of California case number: 4:12-cv-06027.

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Published on Jul-23-14


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