Date: 12-17-2008

Case Style: State of Oklahoma v. La Quinta Inn and Suites

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Court: Muskogee County, Oklahoma

Plaintiff's Attorney: Attorney General Drew Edmondson

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Description: A Muskogee hotel owner who violated Oklahoma’s price gouging statute by illegally increasing room rates during last December’s ice storms will refund more than $2,200 to almost 70 consumers, Attorney General Drew Edmondson said.

An agreement reached today between the state and California-based Absolute Hospitality, Inc. settles state concerns that the hotel’s owner violated Oklahoma’s Emergency Price Stabilization Act by artificially raising its room rates during a declared state of emergency.

“Nearly 70 people who stayed at the La Quinta Inn and Suites, 3031 Military Blvd., between Dec. 10 and Dec. 20, 2007, will receive refunds,” Edmondson said. “The overcharges averaged about $20 per room, per night.”

The attorney general said consumers not already identified by the state who may be eligible for refunds should contact his office at (405) 521-2029.

As part of the agreement, the company will revise its current operating procedure to ensure compliance with Oklahoma’s price gouging law. The company will also pay the state $2,500 to be used for consumer protection enforcement activities.

Today’s agreement is separate from a similar agreement reached last May between the state and six corporate-owned locations. Edmondson’s Consumer Protection Unit negotiated both agreements.

Oklahoma’s price gouging statute prohibits an increase of more than 10 percent in the price of most goods and services when a state of emergency has been declared.

“No person for the duration of a declaration of emergency by the Governor of this state or by the President of the United States and for thirty (30) days thereafter shall sell, rent, or lease, or offer to sell, rent, or lease, for delivery in the emergency area, any goods, services, dwelling units, or storage space in the emergency area at a rate or price which is more than ten percent (10%) above the rate or price charged by the person for the same or similar goods, services, dwelling units, or storage spaces immediately prior to the declaration of emergency unless the increase in the rate or price is attributable only to factors unrelated to the emergency and does not include any increase in profit to the seller or owner,” the statute says.

Outcome: A Muskogee hotel owner who violated Oklahoma’s price gouging statute by illegally increasing room rates during last December’s ice storms will refund more than $2,200 to almost 70 consumers, Attorney General Drew Edmondson said.

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