N.C. Attorney General in ‘discussions’ with Ritz-Carlton over CIAA surcharge

The N.C. Attorney General’s Office said it’s still in talks with the Ritz-Carlton in uptown more than two weeks after the state agency said it planned to sue the hotel for adding a 15 percent CIAA surcharge to customers’ bills during the February basketball tournament.

Earlier this month, the agency’s Consumer Protection Division sent the Ritz-Carlton a draft of a legal complaint that asks a judge to bar the hotel from automatically imposing charges without disclosure. The agency is also seeking restitution and refunds for customers who paid the CIAA gratuity while patronizing the hotel’s lobby bar.

In the draft, the attorney general’s office claims the hotel added the unprecedented service charge without disclosing it first to customers, and used the “CIAA” acronym on the bill without the athletic association’s consent.

The Central Intercollegiate Athletic Association is the oldest African-American athletic conference in the nation. It has hosted its tournament in Charlotte since 2006.

In a letter dated June 9, the attorney general’s office warned the Ritz-Carlton that it would file a complaint in two weeks. By Tuesday, no complaint had been filed. An agency spokeswoman said the office and hotel were involved in “discussions.”

After news broke of a potential lawsuit, the Ritz-Carlton said it was shocked the attorney general’s office felt it wasn’t interested in resolving the issue but remained optimistic a resolution could be found. Efforts to reach a Ritz-Carlton spokeswoman on Tuesday were unsuccessful.

This story was originally published June 30, 2015 at 4:50 PM with the headline "N.C. Attorney General in ‘discussions’ with Ritz-Carlton over CIAA surcharge."