The Langham Huntington Pasadena, a historic luxury hotel, has agreed to pay $320,000 in civil penalties and provide at least $216,795 in refunds to guests to settle a consumer protection lawsuit. Los Angeles County accused the hotel of violating California's anti-price gouging law by illegally increasing room rates during the January 2025 Eaton and Palisades wildfires.
Los Angeles County District Attorney Nathan Hochman stated that it was "reprehensible to overcharge and take advantage of wildfire victims" during a time when the community should have been supporting those in need. The settlement resolves a lawsuit filed jointly by the District Attorney's Office and the County Counsel's Office.
California law prohibits hotels from raising advertised room rates by more than 10% during a declared emergency unless a statutory exception applies. Prosecutors alleged that the Langham Huntington Pasadena charged guests rates exceeding this limit after Governor Gavin Newsom declared a state of emergency on January 7, 2025, following the eruption of the Palisades and Eaton fires across Los Angeles County. The violations allegedly began no later than January 7, 2025, and continued through at least July 1, 2025.
The fires, which broke out on January 7, 2025, forced tens of thousands of residents to evacuate. By late January, the Palisades Fire had burned over 23,000 acres and the Eaton Fire had scorched over 14,000 acres, destroying thousands of homes and resulting in at least 31 deaths.
As part of the stipulated judgment, the hotel must pay $300,000 in civil penalties and $20,000 for investigation costs. The hotel is also required to refund eligible guests who paid more than the legally maximum room rate between January 7 and April 6, 2025. Guests overcharged after April 6, 2025, through the end of the emergency period must also be reimbursed. Any unclaimed refund money will be transferred to the Los Angeles County Department of Consumer and Business Affairs for distribution to eligible guests or consumer protection programs.
In addition to refunds and penalties, the settlement mandates significant changes to Langham's pricing practices. The company must immediately implement legally required price caps upon any declared federal, state, or local emergency, modify pricing systems to prevent unlawful increases, appoint personnel to monitor emergency declarations, train staff on California's price gouging laws, and hire an independent third-party auditor to verify refunds and compliance. A compliance report is due to county officials one year after the judgment takes effect.
Langham Hotels Pacific Corporation did not admit liability as part of the settlement, citing a desire to avoid the expense and uncertainty of litigation. The hotel, which has been a Pasadena landmark for over 100 years, features 379 guestrooms and suites.