MGM Hotels and Resorts winning game of deception and extortion
Consumer fraud and deception in Las Vegas at MGM Resorts?
MGM Hotels and Resorts in Las Vegas operates some of the largest casino resorts in Sin City. MGM is considered a trendsetter. When MGM started charging for parking several years ago, everyone else in Las Vegas followed. When MGM introduced resort fees to Las Vegas, everyone followed. When MGM finally introduces a scheme to defraud hundred thousands of unsuspected hotel guests and customers, many followed again.
if MGM was a responsible member of the travel and tourism industry in Nevada, they should understand their added responsibility as a trendsetter.
Everything they start and do reflects on the visitor’s experience and the image of Las Vegas as a tourist destination.
In a bigger picture, it reflects on the travel and tourism industry as a whole. Since the Visitors industry is one of the largest moneymakers in the State of Nevada, tourism becomes a matter of wellbeing or not for every citizen residing in Nevada. Tourism in Nevada is everyone’s business.
MGM misleads and extorts hotel guests and visitors who shop at their hotels ten-thousands of times every day. The purpose is to make money from unsuspected tourists. The State of Nevada was informed about it and refuses to investigate, saying there is not enough evidence.
Does it mean The Department of Business and Industry, and the Office of Consumer Affairs of the Silver State conspires with MGM in such shady activities? Las Vegas loves and needs visitors, so it could not mean happy tourists are no longer an important issue for the Silver State?
This pattern has been going on for years. Hundred thousands of guests had been victimized and the State of Nevada has no intention to put a stop to it. Was there really only this one complaint filed by our reporter? The video in this article is from 2017.
eTN reported about the issue twice
- Starbucks and MGM Las Vegas extortion scheme exposed, published on October 18, 2018
- MGM Resort Las Vegas Warning to Visitors: Don’t drink the water published on May 5, 2019
In both incidents, eTN reached out to MGM and got no response.
On May 6, 2019, the eTN Reporter who stayed at the MGM Grand Hotel in Las Vegas filed a complaint with the State of Nevada, Department of Business and Industry, Office of the Director, Nevada Consumer Affairs.
The compla int was closed two weeks later and treated as a “tip” with no response needed. When contacted the State re-opened the complaint saying they only have two investigators in the State and it will take some time to respond. Two months later our reporter was told the investigator retired and MGM did not respond when contacted by the State. Therefore no response from MGM – case closed.
On August 16, 2019, 5 months and 3 reminder phone calls later James Dutton, a Compliance and Audit investigator II in Carson City wrote:
“The Nevada Consumer Affairs (NCA) has reviewed your complaint all documentation submitted by you.
There is no sufficient evidence or proof contained in the documents to proceed further with your complaint.
MGM Grand Hotel has been notified of your complaint and informed that should additional information or this business activity become a pattern, NCA will be required to conduct an investigation.
Thank you for contacting the Nevada Department of Business & Industry, Consumer Affairs. This case is being closed accordingly. “
The practice of not having items for sale marked with a Dollar amount at MGM Hotels and Resort stores has only one possible purpose-: Fraud and deception.
When eTN asked MGM hotel staff and managers the response was synchronized and the same in 2017, 2018 and 2019.
The response: “We had shared many such concerns with upper management, but at this time there is no intention to change this policy of not adding price tags to our items.”
MGM set a trend a while ago in charging resort fees. Resort fees are extra charges, on top of a room rate, that isn’t optional. In other words, they’re part of the price of a room, but the hotel advertises a lower price instead. That’s on face deceptive.
If a hotel charges a $250 room rate and a $30 resort fee, that’s $280 a night. If another hotel charges $270 a night they’re actually $10 cheaper — but appear at first glance to the consumer to be more expensive. Once resort fees are standard in a market, a hotel loses by not charging them.
The question remains: What is up with State regulators. Why is this not investigated? It appears big money talks in sin city.
Perhaps if every guest checking out from an MGM operated hotel and resort in Las Vegas take the time to file a complaint, this may make a difference and Las Vegas a more honest and enjoyable place to travel to.
Click here to file a complaint or this will stay in Vegas like so many sins before.