With each decision, the courts give shape to Chapter 93A. This is Attorney Thayer’s second article on such decisions. To read his July 2023 coverage, click here.
In a surprising decision that heightens potential exposure for hospitality service providers and other businesses in Massachusetts, the Appeals Court ruled that a hotel could be held liable for violating the state’s unfair-and-deceptive-conduct law, Chapter 93A, by failing to allow a private guest to use a rented room to sell merchandise. This decision, Connor v. Marriott International, Inc., 103 Mass. App. Ct. 828 (2024), expands consumer protection in Massachusetts while placing businesses on notice that enforcing their lawful policies may not be enough to defeat a claim brought under Chapter 93A.
The plaintiffs in Connor were wholesale sellers of children’s clothing. On numerous prior occasions, they had booked suites at the Fairfield Inn Dedham to showcase their products for retail customers in and around Boston. When staying at the hotel, the plaintiffs typically brought in large boxes and equipment to display their merchandise, which were often shipped to the hotel in advance. The hotel had never objected to plaintiffs’ practices during these prior visits. But at the outset of plaintiffs’ most recent stay at the hotel, management informed plaintiffs that they could not do business there, citing a new “no solicitation” policy. When plaintiffs protested, hotel management called the police and plaintiffs were briefly detained. Plaintiffs agreed to leave, and the hotel refunded the cost of their room.
Following the incident, plaintiffs filed suit against the hotel in Superior Court. Plaintiffs sought damages for loss of business and reputational harm, and included a claim alleging unfair and deceptive conduct in violation of Chapter 93A. The Superior Court judge dismissed the case at summary judgment, holding that the hotel’s enforcement of its valid policy did not violate the statute. On appeal, however, summary judgment was reversed and plaintiffs’ claim under Chapter 93A was reinstated.
As the Appeals Court explained, “the hotel knew the purpose of [plaintiffs’] reservations” and did not disclose its non-solicitation policy when plaintiffs booked their room. This led plaintiffs to believe that they “were welcome to stay there and do business as they had done in the past.” Because the ability to showcase their merchandise to potential customers was central to plaintiffs’ purpose in booking the room, the hotel’s failure to inform them of the policy was found to be a misrepresentation that could give rise to liability under Chapter 93A. In reaching this decision, the Appeals Court rejected the hotel’s argument that it could not violate the statute by enforcing a policy that was designed to prevent activities which might be detrimental to its business or its other guests.
As the Connor decision reinforces, liability under Chapter 93A is broad and does not require any illegal conduct on the part of a business engaged in trade or commerce. In light of this decision, companies doing business in Massachusetts should exercise great caution when enforcing policies that conflict with customers’ expectations—especially where the companies have indicated acceptance of those expectations in the past. Policies and directives that inhibit customer activities should be clearly communicated in advance, as should any deviations on the companies’ part from prior practices.
Kenneth N. Thayer is a Business Litigation Attorney at the Boston-based firm Conn Kavanaugh Rosenthal Peisch & Ford, LLP. He can be reached at kthayer@connkavanaugh.com.
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