A just outcome
7/9/2015, 4:35 p.m.
Here’s good news: A big hotel in Charlotte, N.C., that ripped off people attending the 2015 CIAA basketball tournament in the spring is being forced to return its ill-gotten gains.
In other words, the Ritz-Carlton is going to pay for imposing a “black tax.”
According to news reports, the Ritz-Carlton has agreed to make restitution in a settlement with the North Carolina Attorney General’s Office and the Central Intercollegiate Athletic Association, the nation’s oldest African-American athletic conference.
As you may recall, the problem cropped up during the big sports tournament in Charlotte in late February. African-American patrons who enjoyed food and drink in the hotel’s lobby lounge during the tournament found themselves hit with an extra 15 percent service charge.
The hotel even put “CIAA service charge” on the bill.
It was shameful and infuriating. The CIAA tournament attracts tens of thousands of fans and alumni of the mostly historically black member colleges. The multiday tournament ranks among Charlotte’s largest events. Other cities would love to host it. But this hotel saw the event as a way to exploit African-Americans. Apparently, it never has added a similar service fee to fans attending ACC basketball tournaments or NASCAR races.
In the wake of complaints and public exposure, the embarrassed hotel officials initially tried to get away with just words.
A few days after the tournament, the hotel offered a public apology “to any guests we may have offended by the addition of a service charge we implemented at a recent event in our lobby lounge.”
The settlement goes beyond words. First, the hotel has agreed to donate $75,000 to the CIAA Scholarship Fund.
In addition, the hotel has agreed to refund surcharges imposed on any customers who bought meals or had drinks in the hotel’s lounge during the tournament.
According to the North Carolina Attorney General’s office, people seeking a refund can apply within 90 days by letter or online with the North Carolina Consumer Protection Division at ncdoj.gov. Requests for refunds need to be accompanied by a copy of the bill or a credit card or bank statement.
We applaud the consumers who raised a stink, bringing this to the attention of authorities. It’s a lesson that speaking up against unjust practices is the right way to go.
We also applaud North Carolina Attorney General Roy Cooper for taking action to hold this outlaw hotel accountable. As part of the settlement, the Ritz-Carlton must pay an additional $5,000 to the North Carolina Department of Justice for consumer protection efforts.
In announcing the settlement, Mr. Cooper said the real problem was the hotel’s failure to publicly post a notice and have servers explain the surcharge to guests. “Being upfront with consumers about fees is always the best way to do business. The principle of fairness is important; what happened is bad business.”
To that, we say amen.