LANSING, Mich., (WPBN/WGTU) -- Michigan Attorney General Dana Nessel has reached an Assurance of Voluntary Compliance (AVC) with the operators of several Mackinaw City hotels and tourism groups after an investigation into business practices related to customer reservations.
Earlier this year, Nessel issued a Notice of Intended Action, after receiving complaints from consumers who had booked rooms at hotels, but that these rooms were closed without notice to the consumer.
Additionally, attempts by consumers to secure refunds in those instances were unsuccessful, the AG's office stated.
"During the investigation, conducted by Nessel’s Corporate Oversight Division, it was determined the hotels were advertised through a tourism website that was owned and operated by persons also having ownership interests in the entities running the properties themselves," the AG's office stated.
"The Department has been working with the attorneys representing the entities since February to reach this amicable outcome, which avoids additional action by the Department," the AG's office stated.
Highlights of the agreement include:
Hotels cannot take reservations for rooms that are closed for the season and when a room reservation cannot be fulfilled at other times, assurances will be given and consumers can cancel and obtain a refund.
Consumers will have 90 days to submit claims for reimbursement and are eligible for 100% reimbursement if they can document a fully paid reservation at a hotel that was closed for the season, with the consumer being transferred to a different hotel, since January 1, 2017.
The tourism entity is required to remove the “official seal” from the Chamber of Tourism website and also include conspicuous disclaimers on each website stating, “This site and all the hotels on this site have common ownership by a 5th generation local family that has owned, developed, and personally managed Mackinaw City hotels since 1955.”
Consumers who filed complaints with the Department or Better Business Bureau about being directed to a different hotel when arriving from January 1, 2017, through the issuance of the NIA in February are eligible for an additional $100 reimbursement from the entities.
Hotels and tourism groups will be responsible for up to $25,000 total in consumer payments.
In addition to consumer payments, these entities will pay $5,000 to the State of Michigan and $35,000 to the Michigan Strategic Fund.
“Our Consumer Protection Team is working to ensure residents and tourists to our great state can relax and enjoy their northern Michigan vacations,” Nessel said. “I encourage eligible consumers to file with us right away to secure these reimbursements.”