WA consumers to get refunds for unnecessary fees on hotel bookings through $750K settlement
More than 12,000 Washington consumers will receive refunds through a $750,000 settlement with Lexyl Technologies and Bookonline.com, resolving allegations that the companies deceptively tacked on unnecessary fees when people booked hotel rooms online.
From November 2023 through March 2025, when consumers booked a hotel room on Hotel-rates.com, Room77.com, HotelGuides.com, and Bookonline.com, the sites automatically added a “refund protection” fee via an inconspicuous pre-checked box, making it appear as if the cost was a mandatory fee even though it was optional. The pre-checked box was placed at the bottom of the reservation page, after the billing information section, and was written in light grey font, making it easy for consumers to overlook. 
In the settlement, the AGO alleges the companies violated the Washington Consumer Protection Act by engaging in unfair or deceptive acts, as well as the federal Restore Online Shoppers' Confidence Act. The companies cooperated with the investigation and changed the sites so that consumers now must opt in if they want the service instead of manually unchecking the box to remove the fee.
“Travelers were looking for deals and instead were saddled with extra fees they didn’t need,” Attorney General Nick Brown said. “Our consumer protection work continues for Washington families who just want and deserve honesty in their transactions.”
Within 90 days after the filing of this settlement, the companies will send refund checks to Washington consumers who were charged the automatic fee. Lexyl and Bookonline.com will use the last known billing address on file for each consumer receiving a check. Consumers who already received a partial refund will be sent checks for the rest. The envelope containing the refund check will say “IMPORTANT NOTICE REGARDING REFUND.”
The refund protection fee on the websites is an example of what’s known as a “negative option feature,” which is when a seller interprets a consumer’s lack of action as consent to pay a fee or enroll in a recurring payment. Under the settlement terms, the companies have agreed to disclose negative option features more fully and conspicuously on their websites.
This settlement is part of the AGO’s ongoing work to stand up for the rights of consumers and enforce Washington’s laws against deceptive marketing. In May, the home cleaning platform Homeaglow agreed to a settlement after the AGO’s investigation found that the company enticed consumers with a $19 cleaning fee but then roped Washington consumers into hundreds of dollars of costs due to a predatory membership program.
The settlement is the result of the hard work of the AGO team, including Assistant Attorney General Dan Davies, Investigator Rebecca Hartsock, and Paralegals Rosa Hernandez and Avery Gault.
A copy of the settlement agreement is available here.
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