Seattle’s Climate Pledge Arena has agreed to pay $477,917 in penalties and refunds for charging hidden fees to thousands of customers who bought food and beverages.
On Friday the Washington Attorney General’s Office announced the settlement, which still has to be approved by a judge.
Climate Pledge Arena, a cashless venue since it reopened under its current name in 2021, added a 3% “operational” fee to food and beverage purchases, according to an Attorney General Office press release. Customers were not informed about the 3% fee prior to their purchases, although it showed up on their receipts after they bought their food and drinks. This undisclosed fee was added to roughly 183,000 purchases at 37 arena events from Feb. 27, 2023 to July 22, 2023. The AG’s office says the lack of adequate disclosure violates Washington’s Consumer Protection Act.
The AG’s Office started its investigation after a Jesse Jones report on KIRO-7 in the summer of 2023. The arena’s operator, Oak View Group, told the TV station the 3% was an “operational” fee, and it eliminated the fee after the station’s inquiries.
According to the settlement agreement, Climate Pledge Arena will set aside $162,917 to refund that 3% to each customer who puts in a claim for being overcharged, plus an additional $10 for the customer’s inconvenience. Another $315,000 will go to the AG’s Office to repay its expenses. Climate Pledge arena is also required to settle a related private class action lawsuit on the same matter.
“Washington law is simple: If you charge a fee, you must clearly disclose that fee before someone pays it,” Attorney General Bob Ferguson said in the news release. “Climate Pledge was not doing that. Now they are paying the price.” Ferguson encouraged people who believe a company is charging hidden fees to contact his office, which has charged companies $9.6 million in the past five years for inadequately disclosing fees and surcharges.