Pasadena hotel agrees to pay 0,000 to settle lawsuit over price gouging during Eaton fire.
A Pasadena hotel is set to pay 0,000 to resolve allegations of price gouging related to the 2025 Los Angeles wildfires, as announced by the Los Angeles County District Attorney’s Office on July 13. The settlement involves Langham Hotels Pacific Corporation, the proprietors of the Langham Huntington Pasadena, a luxury hotel situated on Oak Knoll Avenue. The financial settlement comprises 0,000 allocated for civil penalties and an additional ,000 to cover investigative costs.
The lawsuit arose amid grave accusations that the hotel engaged in unlawful pricing practices by charging guests prices exceeding 10 percent of its standard rates during a period of heightened demand, specifically during the Eaton and Palisades fires that prompted significant evacuations across Los Angeles County. Many evacuees sought refuge in local hotels as wildfires ravaged their communities.
In their defense, hotel management attributed the rate increases to an automated pricing system, which inadvertently set higher rates due to the crisis. They have stated that all affected guests have been refunded and emphasized their commitment to transparency and fairness. Management also noted that they collaborated with Los Angeles County authorities during the investigation and provided over 1,100 complimentary room nights to support first responders and displaced residents during the emergency.
The legal action was initiated under California’s anti-price-gouging and unfair competition laws, which are designed to protect consumers during declared states of emergency. The Eaton and Palisades fires ignited on January 7, 2025, under an emergency proclamation that activated such protective measures, which remained effective until March 29, 2026.
As part of the settlement agreement, Langham Hotels has committed to modifying its automated pricing systems to prevent unlawful pricing escalations in future emergencies. Additionally, they are required to issue refunds to eligible guests who were charged above the maximum allowable rates during the crisis. The total amount of refunds designated for the affected period, spanning January through April 2025, is anticipated to be at least 6,000. Any unclaimed refunds will be redirected to the Los Angeles County Department of Consumer and Business Affairs.
The Langham Huntington Pasadena has marketed itself as an iconic destination within the region, boasting 379 guest accommodations, luxury amenities, and a century-long history. The hospitality sector is under scrutiny, with other entities, including Airbnb and private landlords, also facing allegations of price gouging during the 2025 wildfire crises.
Los Angeles County District Attorney Nathan Hochman echoed strong sentiments against exploitative practices, emphasizing the inappropriateness of profiting from the misfortunes of individuals displaced by disaster. His office continues to work with law enforcement to combat various unlawful activities that arise in the wake of such emergencies.
