State has $40K settlement with Gowanus hotel for price-gouging in wake of Sandy
Gowanus-area hotel overcharged 38 guests
New York State Attorney General Eric T. Schneiderman on Thursday announced a settlement of more than $40,000 with MMG Butler Street LLC, a Delaware-based corporation that operates the Holiday Inn Express hotel at 279 Butler St. in Gowanus.
After receiving a consumer complaint, the Attorney General’s Office found that the hotel charged guests excessive rates for last-minute room reservations in the wake of superstorm Sandy, in violation of New York State’s price gouging law. Under the terms of the settlement, the hotel has paid $15,315 in restitution, which is being distributed to 38 victims. The hotel has also paid a $25,000 civil penalty to the State of New York.
“At a time when people desperately needed shelter in the days after Hurricane Sandy, the Holiday Inn Express overcharged them — taking advantage of its own guests, including New Yorkers and visitors to New York, in violation of state price gouging laws,” Attorney General Schneiderman said.