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Understanding Hotel Liability for Trafficking Allegations Under the TVPRA

By Shubhra Mashelkar Partner, Weinberg Wheeler Hudgins Gunn & Dial | June 2025

This article was co-authored by Sarah Unatin, Member, Weinberg Wheeler Hudgins Gunn & Dial

The hospitality industry is facing increasing legal scrutiny over its role in human trafficking. A key driver is the civil liability provision in the Trafficking Victims Protection Reauthorization Act (TVPRA), 18 U.S.C. § 1595(a), which has led to a surge in lawsuits. Courts are now assessing when hotels and other businesses can be held liable for trafficking that occurs on their premises. As case law develops, industry leaders need to understand how these rulings are shaping their legal responsibilities.

1. Context: The Evolution of the TVPRA and its Impact on Hotels

The Trafficking Victims Protection Act (TVPA), enacted in 2000, was designed primarily to impose criminal penalties on human traffickers. However, it did not originally grant victims the right to sue their traffickers or hold third parties civilly liable for facilitating or profiting from trafficking. That changed in 2003 when Congress amended the statute to allow trafficking survivors to sue their traffickers for damages.

While this provided an initial civil remedy, it was narrowly focused on direct perpetrators, leaving businesses and other third parties beyond the law’s reach. The most significant amendment came in 2008, when Congress expanded civil liability to include any business or individual that knowingly benefits from participating in a trafficking venture—whether or not they were directly involved. This expansion put hotels, franchisors, and other industries squarely in the crosshairs of trafficking-related litigation.

For the hospitality industry, the implications were profound. Hotels that unknowingly provided a venue for trafficking could now face lawsuits, with plaintiffs arguing that they profited from traffickers’ use of their properties and failed to take reasonable steps to prevent exploitation. Litigation under the TVPRA has surged in recent years, targeting not just individual hotel owners but also national brands, management companies, and franchisors. As courts continue to interpret the law in different ways, understanding the evolving scope of liability is critical for the hospitality industry.

2. The Legal Battle Over the Beneficiary Provision

Under 18 U.S.C. § 1595(a), a victim of human trafficking “may bring a civil action against … whoever knowingly benefits, or attempts or conspires to benefit, financially or by receiving anything of value from participation in a venture which that person knew or should have known has engaged in an act in violation of this chapter… .” To succeed in a civil trafficking claim against a hotel, a plaintiff must establish three key elements: (1) the hotel knowingly benefitted financially or received something of value, (2) it participated in a venture that engaged in trafficking, and (3) it knew or should have known that the venture was involved in trafficking.

“Knowingly Benefitted”

To meet this requirement, courts generally agree that a hotel must have received a financial benefit, such as revenue from room rentals. The debate, however, lies in whether that benefit must be directly tied to trafficking. Some courts require a clear connection, meaning the hotel must have knowingly profited from transactions related to trafficking. Others take a broader view, holding that any financial gain from a trafficker’s use of the property—regardless of the hotel’s knowledge of the specific activity—can satisfy this element​.

“Participation in a Venture”

The most contested issue in these cases is what qualifies as "participation in a venture." Some courts require evidence that the hotel actively facilitated trafficking—such as coordinating with traffickers or providing specific assistance. Others take a broader approach, finding that passively allowing trafficking to occur, despite clear warning signs, can be enough. Under this interpretation, a hotel could be held liable not for aiding traffickers directly but for failing to act when trafficking was evident​. This evolving standard raises significant risks for hotels that do not have clear policies for identifying and responding to trafficking on their premises.

“Knew or Should Have Known”

A hotel does not need actual knowledge of trafficking to be held liable. Instead, courts apply a “knew or should have known” standard, meaning liability can be based on circumstantial evidence. Common indicators—often referred to as “red flags”—include reports from guests, visible injuries to victims, frequent visits from multiple men to a single room, or minors showing signs of distress. Courts are divided on how much evidence is required. Some demand clear signs of coercion, while others infer liability from patterns of conduct that could also suggest prostitution. These differences create uncertainty for hotels trying to determine their legal responsibilities.

3. Conflicting Views Across Federal Courts

Federal courts across the country are divided on what facts are enough to hold hotels liable under the TVPRA, creating significant uncertainty for the hospitality industry. The key disagreement is whether a hotel can be held liable for indirect participation in trafficking or if plaintiffs must show clear evidence of the hotel’s direct involvement or willful disregard.

Some courts—such as district courts in the First and Seventh Circuits—have adopted a broader interpretation, allowing claims to proceed even when hotels are accused of indirect participation. These courts have permitted lawsuits where plaintiffs allege that hotels repeatedly rented rooms to traffickers or ignored warning signs, such as frequent visits from unregistered guests, excessive cash payments, or staff witnessing clear signs of distress. In these cases, a pattern of inaction can be enough to establish liability.

Other courts, particularly in the Eleventh Circuit and many district courts, apply a stricter standard. They require plaintiffs to present more specific evidence showing that a hotel actively participated in trafficking or deliberately disregarded clear indicators of forced exploitation. These courts often dismiss cases that rely on general red flags—such as increased foot traffic, minimal luggage, or frequent room changes—if there is no direct link to coercion or a hotel employee’s actual knowledge of trafficking.

Because of this split, the same set of allegations can lead to different legal outcomes depending on where a case is filed. The Supreme Court has not yet weighed in to resolve these differences, leaving businesses to navigate a shifting legal landscape. For hotels, franchisors, and management companies operating in multiple jurisdictions, this uncertainty increases risks of litigation and highlights the need to track legal developments in their respective circuits.

4. Emerging Trends in TVPRA Litigation

Recent trends in TVPRA litigation indicate an increasing focus on corporate accountability, particularly within the hospitality industry. Plaintiffs are targeting large hotel brands and franchisors, arguing that these companies failed to enforce anti-trafficking policies or properly oversee franchise operations. While courts have often dismissed claims against franchisors that lack specific allegations of direct knowledge or involvement, some cases have survived motions to dismiss where plaintiffs allege that corporate entities ignored clear warnings or direct reports of trafficking at franchise locations.

Another emerging trend is the use of online evidence to support trafficking claims. Plaintiffs are increasingly relying on social media posts, online reviews, and law enforcement reports to argue that hotels "should have known" trafficking was taking place on their premises. Courts, however, have generally been hesitant to accept such evidence unless it is directly tied to a specific hotel location and the particular trafficking venture involving the plaintiff. Generalized reports of trafficking in an area or vague online complaints about prostitution at a property are often deemed insufficient to establish constructive knowledge. As a result, while online evidence may play a supporting role in some cases, courts typically require more direct, case-specific allegations to move a lawsuit forward.

TVPRA litigation is also extending beyond the hotel industry, with plaintiffs increasingly pursuing claims against third-party businesses that traffickers exploit for their operations. Social media platforms, classified ad websites, and payment processors have been sued for allegedly facilitating trafficking—whether by hosting illicit content, processing transactions tied to trafficking or failing to implement safeguards to prevent misuse of their services. These cases raise complex questions about when a company’s actions cross the line from passive service provider to active participant in trafficking-related ventures.

More recently, plaintiffs have sought to test the limits of liability under the statute, holding industries that have historically not been primary targets of TVPRA litigation accountable, including rideshare companies, landlords, and digital advertising platforms. The key issue in these cases is whether these businesses had a sufficiently direct connection to the trafficking activity. While some courts have allowed claims to proceed against third-party entities, they have generally required specific allegations linking the defendant’s conduct to the particular trafficking venture involving the plaintiff. These cases signal a growing effort to broaden liability under the TVPRA, though courts remain cautious about extending the law beyond its intended scope.

Conclusion

With no Supreme Court ruling yet to clarify the inconsistencies in how lower courts interpret the TVPRA, businesses across industries must remain vigilant. While the law does not impose a general duty to prevent trafficking, companies can reduce their legal risk by implementing clear policies, employee training, and reporting mechanisms to identify and respond to potential trafficking activity. As litigation continues to evolve, staying ahead of legal developments and ensuring compliance with existing regulations will be critical in mitigating liability.

Ms. UnatinThis article was co-authored by Sarah Unatin. Ms. Unatin is a member at Weinberg Wheeler Hudgins Gunn & Dial, LLC. She specializes in high-stakes civil litigation, handling cases involving catastrophic injury, wrongful death, and intentional torts. With extensive experience in complex, emotionally charged litigation, Ms. Unatin focuses her practice on institutional tort liability, particularly in cases involving alleged sex crimes. She represents hotel entities facing claims under the Trafficking Victims Protection Reauthorization Act (TVPRA), showcasing her deep understanding of the operational and regulatory aspects of the hotel industry. Ms. Unatin also defends childcare institutions and residential facilities against allegations of abuse and misconduct, making her well-versed in child protection laws, state licensing requirements, and mandatory reporting obligations.  

Ms. Mashelkar

Shubhra Mashelkar's practice of over 20 years focuses on complex civil litigation, representing clients in both state and federal courts in claims involving premises liability, human trafficking, RICO, product liability and toxic torts. Ms. Mashelkar is currently handling approximately (30) trafficking cases. She is co-lead national trial counsel for a national hotel chain in claims involving sex trafficking under TVPRA. She also represents several independently-owned hotels/motels that are also involved in human trafficking claims. Ms. Mashelkar has also litigated and resolved cases involving serious injury and wrongful death in Arkansas, California, Florida, Georgia, Illinois, Louisiana, Michigan and Mississippi. She is also a member of the American Bar Association, Atlanta Bar Association, Georgia Asian Pacific American Bar Association and South Asian Bar Association of Georgia.

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In the event that you have chosen to have your membership automatically rebilled, unless and until you notify HotelExecutive that you wish to cancel or terminate your membership to HotelExecutive, you hereby agree and authorize HotelExecutive's Internet Payment Service Provider to automatically renew your membership to HotelExecutive on a continuing basis and to charge your credit card (or other payment means you have selected) to pay for the ongoing cost of your membership. You hereby further authorize HotelExecutive's Internet Payment Service Provider to charge your credit card (or other approved payment means you have selected) for any and all purchases of products, services and entertainment provided to in, at, through or in association with HotelExecutive.

13. PRIVACY POLICY

The following is the Privacy Policy for HotelExecutive

We can be reached via telephone, email, or online at our contact page. When you visit our site we do not log any information regarding your domain or email address. Information Sharing: We do not share user information with any third parties other than via press release distribution as described below.

Hotel Newswire is a newswire service that distributes press releases on behalf of our users. If you decide to submit a press release for distribution through our system we will transmit your entire press release including any personal information therein contained to our media contacts and online distribution points including search engines. This is the only redistribution of your information that we engage in. Your submission of press releases through our system indicates consent with this policy. The information we collect during your registration process is used to notify users about updates to our service and inform users of any special events hosted by Hotel Newswire. This information is not shared with other organizations for commercial or non-commercial purposes.

Cookies: Our system requires the use of cookies to enable the user to log back into our website to access information from the newswire, without having to log in each time using the required username and password.

If you do not want to receive email from us in the future, please let us know by following instructions included in our communication with you. Users who supply us with telephone numbers online may receive telephone contact from us regarding their account, or informing them of new products and services available on the HotelExecutive website. If you do not wish to receive such telephone calls, please edit your account and remove your phone number from your account profile. This can be done from your user account menu.

Ad Servers: We do not partner with or have any relationship with any ad server companies. From time to time, we may use customer information for new uses not previously disclosed in our privacy notice. If our information practices change at any time, we will post the policy changes to our website to notify you of these changes and provide you with the ability to opt out of these new uses. If you are concerned about how your information is used, you should check back at our website periodically.

Upon request we provide site visitors with access to all information (including proprietary information) that we maintain about them. Users can access this information by logging in to their account.

Security: We always use industry-standard encryption technologies while transferring and receiving user data exchanged with our site. We have appropriate security measures in place in our physical facilities to protect against the loss, misuse, or alteration of information that we have collected from you on our site. We do not store credit card information in our systems.

If you feel that this site is not following its stated information policy, you may contact us.

Michael Cheng
Mary Holt
Rohith Kori
Theresa Hajko
Erin Whitlock Brown
Michael McCartan
Roy Charette
David Stange
Patricia Davis
Bonnie Knutson
Jennifer Nagy
Cynthia Mejia
Connor Vanderholm
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