Feeds

LA sues travel sites for hotel tax chicanery

Internet math is bad math

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

The city of Los Angeles has sued a group of internet travel sites for allegedly skimping on hotel room taxes.

Priceline.com, InterActiveCorp's Expedia, Cendant's Orbitz and Sabre's Travelocity.com were all named as the travel services in question in the lawsuit filed in Los Angeles Superior Court. The travel sites currently pay taxes on discounted room rates worked out with hotels. They then up the room rate, up the taxes and sell the more expensive rooms online to consumers, according to a report from Reuters.

The lawsuit alleges that the travel companies pocket the money made between the different tax rates. LA also claims that the sites will often charge more in fees and taxes than is required, Reuters said.

"The lawsuit has no merit," Kendra Thornton, a spokeswoman at Orbitz, told the news service.

LA is looking to get class action status for its lawsuit. ®

Related stories

Cendant to buy ebookers for $415m - WSJ
Digital music firm demands big-name business boycott
Cendant offers $1bn for Orbitz
Orbitz founder seeks to rattle Sabre
Security fears holding back online travel market

Choosing a cloud hosting partner with confidence

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.