Attorney General Ken Paxton Secures $9.5M Settlement Over “Junk Fees” with Booking Holdings

August 20, 2025 – Texas Attorney General Ken Paxton has reached a record-setting $9.5 million settlement with Booking Holdings Inc., the parent company of Booking.com, Priceline.com, and Kayak.com, over deceptive pricing practices involving hidden “junk fees.” This is the largest state-level settlement ever obtained against an online travel agency for such conduct.

The lawsuit alleged that Booking misled consumers by advertising unrealistically low hotel rates that excluded mandatory fees. These hidden charges were often grouped with legitimate government taxes under a vague “Taxes and Fees” label during checkout, obscuring the true cost and giving Booking an unfair advantage over more transparent competitors.

“Texans deserve clear, honest pricing—anything less is a violation of trust and of the law,” said Paxton. “This settlement ensures companies like Booking are held accountable and sends a strong message: deceptive practices will not be tolerated.”

Under the settlement, Booking must now clearly disclose all fees upfront, empowering consumers to accurately compare hotel prices across platforms. The case is part of a broader consumer protection push by Paxton, who has also secured similar agreements with major hotel chains like Marriott, Hilton, and Omni.

Paxton’s efforts have helped drive federal regulatory momentum to eliminate hidden fees across the travel industry.