Michigan hotels accused of duping guests reach agreement with state

Frank Witsil, Detroit Free Press
·2 min read
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Hotel operators and tourism groups near Mackinaw City reached an agreement with the state attorney general's office Friday, following complaints about taking reservations when the establishments were closed — and not giving refunds.

"Our Consumer Protection Team is working to ensure residents and tourists to our great state can relax and enjoy their northern Michigan vacations," Michigan Attorney General Dana Nessel said. "I encourage eligible consumers to file with us right away to secure these reimbursements."

Consumers booked rooms at hotels that, while advertised as available and the reservations ultimately confirmed, were in fact closed, Nessel's office said. And then, when customers tried to get refunds, they said they were out of luck.

It turns out, the attorney general's office said, the hotels were advertising through a tourism website that was owned and operated by people who also had ownership interests in the entities running the properties.

The state worked out agreements with several groups, including Enjo Properties, Jade Enterprises, Lieghio’s Hamilton Inn Select, Mackinaw City Chamber of Tourism, Quality Properties of Macknaw and Queen’s Properties.

The groups agreed to no longer take reservations for rooms in hotels that are closed for the season and when a room reservation cannot be fulfilled at other times, assurances are given consumers will have ability to cancel and receive a refund.

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Consumers also will have 90 days to submit claims for reimbursement and are eligible for 100% reimbursement by the entities if they can document a fully paid reservation at one of the hotels that was closed for the season.

Groups will be responsible for up to $25,000 total in consumer payments. In addition to consumer payments, the entities will pay $5,000 to the State of Michigan and $35,000 to the Michigan Strategic Fund.

Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.

This article originally appeared on Detroit Free Press: Mackinaw hotels reach agreement after bait-and-switch complaints