In the Superior Court for the State of Washington in and for 7 the County of King

1 2 3 4 5 6 IN THE SUPERIOR COURT FOR THE STATE OF WASHINGTON IN AND FOR 7 THE COUNTY OF KING 8 Cause No.: 9 DANIEL MAHONEY, an individual; JENNI R. STEPHENSON, an individual; and 10 COMPLAINT FOR UNFAIR TRADE JONATHAN MARKHAM, an individual, PRACTICES UNDER RCW 19.86.020 11 Plaintiffs, 12 v. 13 EXPEDIA, INC., a Washington Corporation; 14 Defendant. 15 16 I. COMPLAINT 17 Plaintiffs, Daniel Mahoney, Jenni R. Stephenson, and Jonathan Markham bring 18 this Action Complaint against Defendant Expedia, Inc. (“Expedia”), alleging as follows: 19 II. NATURE OF ACTION 20 1. This Complaint comes during a global pandemic arising from a novel 21 coronavirus, COVID-19. Nationwide lockdowns sent unemployment to historic levels, 22 and the economic and health effects imposed great hardship on millions of Americans. 23 National and worldwide travel restrictions were imposed to protect health and welfare 24 during this public health emergency. 25 2. The pandemic dramatically impacted travel, particularly air travel. The 26 ability to travel was eliminated for many Americans. COMPLAINT - 1 1 3. Airlines slashed flight schedules, resulting in thousands of flight 2 cancellations for millions of passengers. 3 4. Under U.S. law, airline passengers are entitled to a refund if the airline 4 cancels a flight, regardless of the reason the airline cancels the flight. 5 5. Some carriers honored this requirement, while others have not. 6 6. Some carriers offered only to rebook and/or provide travel vouchers to 7 passengers whose trips the airlines canceled. 8 7. Many of these carriers market and book their flights to consumers through 9 online travel agencies. 10 8. An online travel agency (OTA) is a web-based marketplace that allows 11 consumers to research and book travel products and services through a single 12 interface. 13 9. Millions of American consumers book airline travel through OTAs. 14 10. The largest OTAs have come to possess considerable leverage in the 15 travel marketplace, and most airlines offer flights through OTAs. 16 11. Expedia is the largest OTA in the United States with approximately 70 17 percent of the OTA market. Expedia operates Expedia.com, Orbitz, Hotels.com, 18 Trivago, CheapTickets, Hotwire, HomeAway, and Travelocity. 19 12. When using Expedia, the consumer books his or her flight directly with 20 Expedia rather than the airline. 21 13. Expedia acts as a “middleman” or broker in the transaction between the 22 consumer and the airline. 23 14. Expedia provides the consumer with confirmation of the flight, and 24 provides the consumer with other important notices about the flight thereafter, including 25 delays and cancellations. 26 COMPLAINT - 2 1 15. The consumer’s primary relationship with respect to his or her flight 2 purchase is with Expedia. 3 16. Expedia charges a booking fee to the airlines, and often that fee is passed 4 directly to consumers within the price of the flight. 5 17. During this unprecedented global health and economic crisis, consumers’ 6 need for refunds over travel vouchers is pressing. Travel vouchers provide little security 7 in this crisis, particularly where many individuals need money now to pay for basics like 8 food and rent. 9 18. When airlines began cancelling flights in the spring of 2020, customers 10 who had booked their flights through Expedia received notice of the cancellations 11 directly from Expedia. 12 19. Expedia told its customers what their options were, and told its customers 13 to contact Expedia to elect an option. 14 20. However, Expedia does not necessarily provide its customers with refunds 15 for canceled flights. 16 21. If an airline tells Expedia that a refund is not an option, Expedia tells its 17 customer that a refund is not an option. 18 22. In its role as middleman or broker, Expedia manages the consumer’s 19 purchase, but generally refuses to ensure that they receive refunds for cancelled flights 20 if an airline does not agree to do so. 21 23. Expedia’s actions have financially damaged Plaintiffs. Plaintiffs each 22 requested refunds for tickets on a cancelled flight and were entitled to a refund. But, as 23 with so many other passengers, Expedia denied them a refund. Expedia has engaged 24 in unfair and deceptive conduct through its policy to refuse refunds, limiting and forcing 25 customers into a rebooked flight or travel voucher instead of returning their money. 26 COMPLAINT - 3 1 24. As a result, Plaintiffs brings this action because Plaintiffs did not receive 2 refunds for cancelled flights booked through Expedia, lost the benefit of their bargain 3 and suffered injury to business or property, and are entitled to recover compensatory 4 damages, trebled, and attorney’s fees and costs. 5 III. JURISDICTION AND VENUE 6 25. This Court has jurisdiction over the subject matter of this action under 7 RCW 19.86.090. 8 26. This Court has personal jurisdiction over the Defendant because it is 9 headquartered and resides in King County, Washington. 10 27. Venue is appropriate in this Court because Defendant maintains its 11 principal place of business within King County. Upon information and belief, events and 12 transactions causing the claims herein, including Expedia’s decision-making regarding 13 its refund policy challenged in this lawsuit, has occurred within King County. 14 IV. PARTIES 15 28. Plaintiff Daniel Mahoney is a citizen and resident of the State of California. 16 He purchased a ticket from Expedia in December 2019 for travel to Italy in July 2020 on 17 TAP Air Portugal. In May 2020, Expedia notified Plaintiff that his flights had been 18 cancelled. Despite requesting and being entitled to a refund for his cancelled flight, 19 Expedia refused to provide him a refund. 20 29. Plaintiff Jenni Stephenson is a citizen and resident of the State of Texas. 21 She purchased a ticket from Expedia in later February or early March 2020 for travel 22 from Houston, Texas, to Tokyo, Japan on Air Canada. Later in March, Expedia notified 23 Plaintiff that her flights had been cancelled. Despite requesting and being entitled to a 24 refund for her cancelled flight, Expedia refused to provide Plaintiff a refund. 25 30. Plaintiff Jonathan Markham is a citizen and resident of the State of 26 California. He purchased a ticket from Expedia in 2019 for travel from Los Angeles to COMPLAINT - 4 1 Tokyo in May 2020 on All Nippon Airways. In April 2020, Expedia notified Plaintiff that 2 his flight had been cancelled. Despite requesting and being entitled to a refund for his 3 cancelled flight, Expedia refused to provide Plaintiff a refund. 4 31. Defendant Expedia, Inc. is a Washington corporation with a principal place 5 of business at 1111 Expedia Group Way W., Seattle, Washington, 98119-1111. It 6 provides online travel agency services to the general public, including the sale of airline 7 travel on a variety of airlines worldwide. 8 V. FACTS 9 32. On March 11, 2020, the World Health Organization declared COVID-19 a 10 pandemic. That same day, U.S. officials announced new travel bans blocking most 11 visitors from continental Europe to the United States. 12 33. Travel restrictions domestically began on March 16, 2020, with many 13 states, counties, and municipalities announcing shelter-in-place orders throughout the 14 weeks that followed. 15 34. Many other countries have instituted similar travel bans and restrictions. 16 At the time of the drafting of this complaint nearly one year later, most European nations 17 still have extremely strict limitations on Americans wishing to enter their countries. 18 35. As airlines announced flight cancellations (combined with decreased 19 bookings), some took a variety of steps to make it difficult, if not impossible, for 20 consumers to receive any refund on pandemic-cancelled flights. 21 36. Despite its role as middleman or broker in its customers’ purchase of air 22 travel on these airlines, Expedia generally did not intervene or take steps to ensure that 23 its customers were given the right to receive a refund on pandemic-cancelled flights. It 24 failed to do so despite consumers’ right to receive a refund for canceled flights, even 25 with nonrefundable tickets. 26 COMPLAINT - 5 1 37. According to the United States Department of Transportation’s April 3, 2 2020, Enforcement Notice, if any airline cancels a flight, passengers are entitled to 3 receive a full refund. 4 38. This notice was issued to “remind” both U.S. and foreign carriers that, 5 during the pandemic, their “obligation to refund passengers for cancelled or significantly 6 delayed flights remains unchanged.” 7 39. The DOT’s notice pointed out that this obligation to promptly refund airfare 8 for flights that a carrier cancels is “longstanding,” citing Enhancing Airline Passenger 9 Protections, 76 Fed. Reg. 23110-01 (April 25, 2011). 10 40. However, many airlines have attempted to keep passenger money 11 through providing travel credits, not refunds. 12 41. When customers purchased tickets from Expedia on flights that were later 13 cancelled, Expedia has not taken steps to ensure its customers have the option of 14 receiving a full refund. 15 42. According to the Department of Transportation, it is an unfair or deceptive 16 practice for an OTA to “fail[] or refus[e] to make proper refunds promptly when service 17 cannot be performed as contracted.” 14 C.F.R. § 399.80(l). 18 43. Expedia customers nationwide have spent hours trying to communicate 19 with Expedia about their failure to obtain refunds of pandemic-cancelled flights and 20 about the inadequacy of the remedies offered, and still Expedia refused to obtain them 21 refunds.

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