Priceline Has No Fiduciary Duty In Hotel Bidding: 2nd Circ.

By Helen Christophi (March 27, 2013, 4:52 PM EDT) -- The Second Circuit on Wednesday tossed a putative class action against Priceline.com claiming it violated its fiduciary duty by not telling customers it pockets extra money it makes from their transactions using its service to bid on hotel rooms, saying the plaintiffs didn't plead a fiduciary relationship.

The appellate panel affirmed a lower court's dismissal of the class action alleging that Priceline.com breached its fiduciary duty as a travel agent and violated Connecticut's Unfair Trade Practices Act by failing to disclose to users of its "Name Your Own Price" booking service that a successful bid for a hotel room usually exceeds...

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