Hilton faces $25,000 fine over allegations it blocked guests' personal wifi hotspots unless they paid a $500 fee

 

Hilton – one of the world’s largest hotel chains – is facing a $25,000 government fine after it was accused of blocking guests’ personal wifi hotspots.

In an order released this week, the Federal Communications Commission’s enforcement bureau proposed the five-figure penalty for the company’s ‘apparent obstruction’ of an investigation into claims it tried to charge customers a $500 (£325) fee.

While $25,000 (£16,000) may seem like a lot of money to the average person, the amount is a small sum for a global company that has annual sales of about $10bn (£6.5bn).

The fine could increase, however, as the FCC ordered Hilton to provide ‘essential information’ and documents about its wifi management practices.

It warned the hotel chain – whose brands include Waldorf Astoria, Conrad, DoubleTree, and Hampton – it may face ‘a significantly higher fine for any continued obstruction or delay’.

A Hilton spokeswoman told MailOnline that the company ‘strongly disagrees’ with the enforcement bureau’s decision.

 A guest claimed a Hilton blocked visitors’ wifi hotspots unless they paid a $500 fee to access the hotel’s wifi

The spokeswoman added: ‘Hilton supports open access to private wifi networks for our customers through their personal devices, while at the same time protecting their personal information

‘We have a policy in place that states our commitment to secure open access and prohibits hotels from blocking wifi, and it is repeatedly communicated to all properties.’

The company claims it has co-operated with the FCC throughout its investigation, and provided ‘extensive background and details in a timely and efficient manner’.

The spokeswoman added: ‘We believe that the FCC has no basis for vastly expanding the initial inquiry based on a single complaint at a single Hilton hotel.’

The investigation stems from an August 2014 complaint that was made by a guest who claimed a Hilton in Anaheim, California, blocked visitors’ wifi hotspots unless they paid a $500 fee to access the hotel’s wifi.

The practice was allegedly in use at other Hilton hotels, as the FCC said it had received complaints that other locations had broken a federal law that prohibits people and companies from maliciously blocking wifi.

In November 2014 the FCC sent a letter to Hilton demanding information related to basic company information, relevant corporate policies and wifi management practices at its hotels in the US.

This week, the regulator claimed Hilton has failed to hand over the information ‘for the vast majority of its properties’.

Travis LeBlanc, chief of the FCC enforcement bureau, said in a statement: ‘Hotel guests deserve to have their Wi-Fi blocking complaints investigated by the commission.

‘To permit any company to unilaterally redefine the scope of our investigation would undermine the independent search for the truth and the due administration of the law.’

This is not the first time the FCC has penalized a company for blocking wifi connections.

Last year Marriott, another hotel chain, was hit with a $600,000 fine for jamming wifi at the Gaylord Opryland Hotel and Convention Center in Nashville.

In August the FCC handed a $750,000 fine to Smart City Holdings for wifi blocking at convention centers.

Earlier this week the regulator proposed a $718,000 fine for M.C. Dean for apparent wifi blocking at the Baltimore Convention Center.