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In the days following the Sept. 11 terrorist attacks, millions of Americans pulled together in a renewed spirit of cooperation and patriotism. However, this apparently was not the case at a locally operated hotel, which was cited by the New York State Attorney General's Office for taking advantage of the tragedy by price gouging.

Attorney General Eliot Spitzer announced this week that an agreement has been reached with the Days Inn of Hicksville, which had been accused of excessively raising room rates in the days immediately following the attacks.

According to the attorney general's office, the hotel raised its rates as much as 185 percent immediately following the tragic events, forcing stranded customers to pay significantly more than expected for a hotel room. The action was regarded as a clear violation of New York's anti-price gouging law. The attorney general investigation revealed that in the days following the tragedy, the hotel had raised its prices from the posted room rate of $139 to as high as $399 per room, per night.

This was done while air travel in New York was curtailed as a security measure, leaving many customers in need of housing, according to the attorney general. Also at the time of the inflated rates, a state of emergency had been declared in New York. The state's anti-price gouging law prohibits unconscionably excessive prices for vital goods and services, such as hotel lodging, during a state of emergency.

"No business should profit from tragedy," Spitzer said in announcing the settlement of the case.

In settling the case, Days Inn/Hicksville agreed to make refunds to all people who were overcharged, and to pay $9,500 in civil penalties and court costs.

Spitzer encouraged those who believe they were victims of price gouging at the Days Inn to call the attorney general's consumer help line at (800) 771-7755 or (212) 416-8300.


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