I don't really see anything wrong with warning others that a hotel's policies are irregular and for people to be careful.
Just saying something such as "make sure you carefully read their terms before staying at this place or leaving a deposit, they are not standard and you could end up paying much more than you anticipated." might be justified, no?
Yes, I feel bad for the hotel, this could cripple their business, but it will probably make the news and encourage other hotels to review their policies. In the end the consumers (who are innocent) will be the ones who benefit from this.
You don't know that.
they have been extorting people
You don't know that.
Some collective action against the gaming of the system is called for
Oh, geeze. If gaming the system is bad, then stop gaming the system.
If someone really wanted to put the screws to these people, then they would find a patron who has actually had that $500 policy used against them, implicitly if nothing else. It would require some kind of investigative journalism to find an actual victim. But that's a lot more slow and boring than getting out the Internet pitchforks and just burning their online presence to the ground right now. (If we wait too long our anger might dissipate!)
I'm suggesting that people comment on a public policy. No more, no less.
You don't know anything about the quality of their online reviews. No, I mean it, you really don't: 5 minutes wasn't enough time for you to investigate this policy and see how long it's been in place. Perhaps this policy is brand new and hasn't affected any online reviews yet, which means "none of their other reviews are trustworthy" would be incorrect. [1] Yet you implore that we should have an "immediate response." Quick, before we have a chance to think this through!!!
There's nothing our primate lizard brains love better than collectively kicking the crap out of an enemy who can't fight back. That isn't something to be celebrated or encouraged.
Slow down, take a deep breath, and count to 10.
[1] Doing this research now doesn't excuse a call for an "immediate response."
https://web.archive.org/web/20130301124243/http://www.unions...
Let 'em take the dings. An example must be made of this kind of anti-consumer behavior.