Lawsuit Targets Circa Hospitality’s Customer Loyalty Program

Operators across Las Vegas offer different incentives through their loyalty programs. Signing up for some of those programs is free and customers can benefit from a wide range of complimentary options, including free meals, casino chips or in some cases even free hotel accommodation for a specific period. A recent lawsuit challenges whether or not one of Sin City’s operators failed to disclose taxes and fees that are required for different comps within its loyalty program.

Details regarding the new lawsuit against Circa Hospitality Group and subsidiaries emerged last week, a report released by the Las Vegas Review-Journal reveals. The legal claim alleges the operator and its subsidiaries failed to disclose fees and taxes applicable for comps via the operator’s loyalty program called “Club One.”

Ultimately, the lawsuit that seeks class action, asks the hospitality and gaming operator to “cease any and all forms of unlawful conduct,” specifying that earnings for comps by its members should not be reduced by different fees. The legal case alleges that Circa “engaged in deceptive trade practices,” accusing the operator of misrepresentation, negligence and conversion. Besides engaging in deceptive practices, the newly released report reveals the lawsuit alleges the operator of breach of contract and breach of implied covenant.

The Lawsuit Claims Damages of Nearly $4 Million

The lawsuit was filed by Attorneys Artemus Ham, Robert Eglet, Robert Adams and Michael Kind on behalf of five plaintiffs. The defendants listed in the lawsuit include Circa Hospitality Group, the Golden Gate, D and Circa, as well as some unnamed employees and subsidiaries. Filed with the Clark County District Court, the legal case claims damages of some $3.75 million over the last four years while Circa’s loyalty program has been operating.

According to the lawsuit, the “defendants routinely decreased the amount of comps that they promised to plaintiffs by deceptively applying false fees and charges.”

In the new lawsuit, one of the plaintiffs, Matthew Stokes, explained that he purchased a meal for $23 at Saginaw’s Deli at Circa. “Mr. Stokes was surprised to see that, in addition to the $23, defendant’s point-of-sale system assessed an additional $1.93 of ‘add on tax’ that was deducted from his earned comps balance,” explained the lawsuit, applying a copy of the receipt as well.

A date for the trial is yet to be scheduled. The legal case claims that more than 10,000 people who have signed up for the loyalty program when visiting Circa may be involved.