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Californian Travelers Accuse Harrah’s Las Vegas Resorts of Levying Secret Energy Surcharges

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Case ID: 3320 | Miscellaneous | 04/13/2004

A class action has been filed against Harrah's Entertainment, Inc. on behalf of all California residents who stayed at a Harrah's resort from April 1 through December 2001 and were billed an energy surcharge without being informed of the charge. The plaintiffs allege that the companies violated California consumer protection laws. The action seeks unspecified compensatory and punitive damages.

The action alleges that a substantial portion of the hotels’ patrons were California residents; that the defendants advertised to California residents through billboards in California, print advertisements in California newspapers, and radio and television advertisements on California stations; that they accepted reservations from California residents via the Internet and telephone; that an Internet site provided driving directions to the hotels from California locations; that two of the defendants were qualified to do business in California; and that a related marketing company maintained offices in California.

Snowney filed suit against Harrah's Las Vegas and several other Harrah's hotels and business entities in February 2002, alleging that the company billed him an energy surcharge of $3 for a one-night stay in the fall of 2001. He wasn't told of the charge beforehand, the suit said. The suit included counts for violation of an unfair competition law, breach of contract, unjust enrichment and false advertising.

Other Nevada hotels and casino companies won't be added to the suit even though many hotels in California and Nevada likely tacked on extra fees in 2001 during California's energy crisis. Named as defendants in the suit are:

Harrah's Entertainment, Inc.
Harrah’s Las Vegas, Inc.
Harrah’s Laughlin, Inc.
Harrah’s Reno Holding Company, Inc.
Rio Hotel & Casino, Inc.
Rio Vegas Hotel & Casino, Inc.
Harrah’s Operating Company, Inc.
Harrah’s Management Company
Harveys P.C., Inc.
Harveys Casino Resorts
Harveys Tahoe Management Company, Inc.
Rio Properties, Inc.,


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