[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2498 Reported in Senate (RS)]
<DOC>
Calendar No. 478
118th CONGRESS
2d Session
S. 2498
To prohibit unfair and deceptive advertising of prices for hotel rooms
and other places of short-term lodging, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 26, 2023
Ms. Klobuchar (for herself, Mr. Moran, Mrs. Capito, Ms. Cortez Masto,
and Mr. Casey) introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
August 1, 2024
Reported by Ms. Cantwell, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To prohibit unfair and deceptive advertising of prices for hotel rooms
and other places of short-term lodging, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Hotel Fees Transparency Act
of 2023''.</DELETED>
<DELETED>SEC. 2. PROHIBITION ON UNFAIR AND DECEPTIVE ADVERTISING OF
HOTEL ROOMS AND OTHER SHORT-TERM LODGING
PRICES.</DELETED>
<DELETED> (a) Prohibition.--</DELETED>
<DELETED> (1) In general.--No covered person may advertise,
display, market, or offer in interstate commerce, including
through direct offerings, third-party distribution, or
metasearch referrals, a price for a place of short-term lodging
that does not include all required fees (excluding any taxes or
fees imposed by a government or quasi-government entity and
assessment fees of a government-created special district or
program).</DELETED>
<DELETED> (2) Individual components.--Nothing in this Act
shall be construed to prohibit the display of--</DELETED>
<DELETED> (A) individual components of the total
price; or</DELETED>
<DELETED> (B) details of taxes or other items not
required by paragraph (1).</DELETED>
<DELETED> (b) Enforcement.--</DELETED>
<DELETED> (1) Enforcement by the commission.--</DELETED>
<DELETED> (A) Unfair or deceptive acts or
practices.--A violation of subsection (a) shall be
treated as a violation of a rule defining an unfair or
deceptive act or practice prescribed under section
18(a)(1)(B) of the Federal Trade Commission Act (15
U.S.C. 57a(a)(1)(B)).</DELETED>
<DELETED> (B) Powers of the commission.--</DELETED>
<DELETED> (i) In general.--The Commission
shall enforce this section in the same manner,
by the same means, and with the same
jurisdiction, powers, and duties as though all
applicable terms and provisions of the Federal
Trade Commission Act (15 U.S.C. 41 et seq.)
were incorporated into and made a part of this
Act.</DELETED>
<DELETED> (ii) Privileges and immunities.--
Any person who violates this section shall be
subject to the penalties and entitled to the
privileges and immunities provided in the
Federal Trade Commission Act (15 U.S.C. 41 et
seq.).</DELETED>
<DELETED> (iii) Authority preserved.--
Nothing in this section shall be construed to
limit the authority of the Commission under any
other provision of law.</DELETED>
<DELETED> (2) Enforcement by states.--</DELETED>
<DELETED> (A) In general.--If the attorney general
of a State has reason to believe that an interest of
the residents of the State has been or is being
threatened or adversely affected by a practice that
violates subsection (a), the attorney general of the
State may, as parens patriae, bring a civil action on
behalf of the residents of the State in an appropriate
district court of the United States to obtain
appropriate relief.</DELETED>
<DELETED> (B) Rights of the commission.--</DELETED>
<DELETED> (i) Notice to the commission.--
</DELETED>
<DELETED> (I) In general.--Except as
provided in subclause (III), the
attorney general of a State, before
initiating a civil action under
subparagraph (A) shall notify the
Commission in writing that the attorney
general intends to bring such civil
action.</DELETED>
<DELETED> (II) Contents.--The
notification required by subclause (I)
shall include a copy of the complaint
to be filed to initiate the civil
action.</DELETED>
<DELETED> (III) Exception.--If it is
not feasible for the attorney general
of a State to provide the notification
required by subclause (I) before
initiating a civil action under
subparagraph (A), the attorney general
shall notify the Commission immediately
upon instituting the civil
action.</DELETED>
<DELETED> (ii) Intervention by the
commission.--The Commission may--</DELETED>
<DELETED> (I) intervene in any civil
action brought by the attorney general
of a State under subparagraph (A);
and</DELETED>
<DELETED> (II) upon intervening--
</DELETED>
<DELETED> (aa) be heard on
all matters arising in the
civil action; and</DELETED>
<DELETED> (bb) file
petitions for appeal of a
decision in the civil
action.</DELETED>
<DELETED> (C) Investigatory powers.--Nothing in this
paragraph may be construed to prevent the attorney
general of a State from exercising the powers conferred
on the attorney general by the laws of the State to
conduct investigations, to administer oaths or
affirmations, or to compel the attendance of witnesses
or the production of documentary or other
evidence.</DELETED>
<DELETED> (D) Coordination with the commission.--If
the Commission institutes a civil action or an
administrative action with respect to a violation of
subsection (a), the attorney general of a State shall
coordinate with the Commission before bringing a civil
action under subparagraph (A) against any defendant
named in the complaint of the Commission for the
violation with respect to which the Commission
instituted such action.</DELETED>
<DELETED> (E) Venue; service of process.--</DELETED>
<DELETED> (i) Venue.--Any action brought
under subparagraph (A) may be brought in--
</DELETED>
<DELETED> (I) the district court of
the United States that meets applicable
requirements relating to venue under
section 1391 of title 28, United States
Code; or</DELETED>
<DELETED> (II) another court of
competent jurisdiction.</DELETED>
<DELETED> (ii) Service of process.--In an
action brought under subparagraph (A), process
may be served in any district in which--
</DELETED>
<DELETED> (I) the defendant is an
inhabitant, may be found, or transacts
business; or</DELETED>
<DELETED> (II) venue is proper under
section 1391 of title 28, United States
Code.</DELETED>
<DELETED> (F) Actions by other state officials.--
</DELETED>
<DELETED> (i) In general.--In addition to
civil actions brought by an attorney general
under subparagraph (A), any other officer of a
State who is authorized by the State to do so
may bring a civil action under subparagraph
(A), subject to the same requirements and
limitations that apply under this paragraph to
civil actions brought by attorneys
general.</DELETED>
<DELETED> (ii) Savings provision.--Nothing
in this paragraph may be construed to prohibit
an authorized official of a State from
initiating or continuing any proceeding in a
court of the State for a violation of any civil
or criminal law of the State.</DELETED>
<DELETED> (c) Definitions.--In this section:</DELETED>
<DELETED> (1) Commission.--The term ``Commission'' means the
Federal Trade Commission.</DELETED>
<DELETED> (2) Covered person.--The term ``covered person''
means a person with respect to whom the Commission has
jurisdiction under section 5(a)(2) of the Federal Trade
Commission Act (15 U.S.C. 45(a)(2)), including a place of
short-term lodging, an online travel agency, a metasearch
website, or any other person determined appropriate by the
Commission.</DELETED>
<DELETED> (3) Place of short-term lodging.--The term ``place
of short-term lodging'' means a hotel, motel, inn, short-term
rental, or other place of lodging that advertises at a price
that is a nightly, hourly, or weekly rate.</DELETED>
<DELETED> (4) State.--The term ``State'' means each of the
50 States, the District of Columbia, and any territory or
possession of the United States.</DELETED>
<DELETED> (d) Effective Date.--</DELETED>
<DELETED> (1) In general.--Subject to paragraph (2), the
prohibition under subsection (a) shall take effect 450 days
after the date of the enactment of this Act.</DELETED>
<DELETED> (2) Application to prior bookings.--The
prohibition under subsection (a) shall only apply to bookings
for a place of short-term lodging made on or after the
effective date described in paragraph (1).</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Hotel Fees Transparency Act of
2024''.
SEC. 2. PROHIBITION ON UNFAIR AND DECEPTIVE ADVERTISING OF HOTEL ROOMS
AND OTHER SHORT-TERM RENTAL PRICES.
(a) Prohibition.--
(1) In general.--It shall be unlawful for a covered entity
to display, advertise, market, or offer in interstate commerce,
including through direct offerings, third-party distribution,
or metasearch referrals, a price for covered services that does
not clearly, conspicuously, and prominently--
(A) display the total services price, if a price is
displayed, in any advertisement, marketing, or price
list wherever the covered services are displayed,
advertised, marketed, or offered for sale;
(B) disclose to any individual who seeks to
purchase covered services the total services price at
the time the covered services are first displayed to
the individual and anytime thereafter throughout the
covered services purchasing process; and
(C) disclose, prior to the final purchase, any tax,
fee, or assessment imposed by any government entity,
quasi-government entity, or government-created special
district or program on the sale of covered services.
(2) Individual components.--Provided that such displays are
less prominent than the total service price required in
paragraph (1), nothing in this Act shall be construed to
prohibit the display of--
(A) individual components of the total price; or
(B) details of other items not required by
paragraph (1).
(3) Indemnification provisions.--Nothing in this section
shall be construed to prohibit any covered entity from entering
into a contract with any other covered entity that contains an
indemnification provision with respect to price or fee
information disclosed, exchanged, or shared between the covered
entities that are parties to the contract.
(b) Enforcement.--
(1) Enforcement by the commission.--
(A) Unfair or deceptive acts or practices.--A
violation of subsection (a) shall be treated as a
violation of a rule defining an unfair or deceptive act
or practice prescribed under section 18(a)(1)(B) of the
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)).
(B) Powers of the commission.--
(i) In general.--The Commission shall
enforce this section in the same manner, by the
same means, and with the same jurisdiction,
powers, and duties as though all applicable
terms and provisions of the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) were
incorporated into and made a part of this Act.
(ii) Privileges and immunities.--Any person
who violates this section shall be subject to
the penalties and entitled to the privileges
and immunities provided in the Federal Trade
Commission Act (15 U.S.C. 41 et seq.).
(iii) Authority preserved.--Nothing in this
section shall be construed to limit the
authority of the Commission under any other
provision of law.
(2) Enforcement by states.--
(A) In general.--If the attorney general of a State
has reason to believe that an interest of the residents
of the State has been or is being threatened or
adversely affected by a practice that violates
subsection (a), the attorney general of the State may,
as parens patriae, bring a civil action on behalf of
the residents of the State in an appropriate district
court of the United States to obtain appropriate
relief.
(B) Rights of the commission.--
(i) Notice to the commission.--
(I) In general.--Except as provided
in subclause (III), the attorney
general of a State, before initiating a
civil action under subparagraph (A)
shall notify the Commission in writing
that the attorney general intends to
bring such civil action.
(II) Contents.--The notification
required by subclause (I) shall include
a copy of the complaint to be filed to
initiate the civil action.
(III) Exception.--If it is not
feasible for the attorney general of a
State to provide the notification
required by subclause (I) before
initiating a civil action under
subparagraph (A), the attorney general
shall notify the Commission immediately
upon instituting the civil action.
(ii) Intervention by the commission.--The
Commission may--
(I) intervene in any civil action
brought by the attorney general of a
State under subparagraph (A); and
(II) upon intervening--
(aa) be heard on all
matters arising in the civil
action; and
(bb) file petitions for
appeal.
(C) Investigatory powers.--Nothing in this
paragraph may be construed to prevent the attorney
general of a State from exercising the powers conferred
on the attorney general by the laws of the State to
conduct investigations, to administer oaths or
affirmations, or to compel the attendance of witnesses
or the production of documentary or other evidence.
(D) Action by the commission.--Whenever a civil
action has been instituted by or on behalf of the
Commission for violation of subsection (a), no attorney
general of a State may, during the pendency of that
action, institute an action under subparagraph (A)
against any defendant named in the complaint in that
action for a violation of subsection (a) alleged in
such complaint.
(E) Venue; service of process.--
(i) Venue.--Any action brought under
subparagraph (A) may be brought in--
(I) the district court of the
United States that meets applicable
requirements relating to venue under
section 1391 of title 28, United States
Code; or
(II) another court of competent
jurisdiction.
(ii) Service of process.--In an action
brought under subparagraph (A), process may be
served in any district in which--
(I) the defendant is an inhabitant,
may be found, or transacts business; or
(II) venue is proper under section
1391 of title 28, United States Code.
(F) Actions by other state officials.--
(i) In general.--In addition to civil
actions brought by an attorney general under
subparagraph (A), any other officer of a State
who is authorized by the State to do so may
bring a civil action under subparagraph (A),
subject to the same requirements and
limitations that apply under this paragraph to
civil actions brought by attorneys general.
(ii) Savings provision.--Nothing in this
paragraph may be construed to prohibit an
authorized official of a State from initiating
or continuing any proceeding in a court of the
State for a violation of any civil or criminal
law of the State.
(3) Rebuttable presumption of compliance.--In any action
pursuant to paragraph (1) or (2), an intermediary or third-
party online seller shall be entitled to a rebuttable
presumption of compliance with the price display requirements
of subsection (a)(1), if such intermediary or third-party
online seller--
(A) relied in good faith on information provided to
the intermediary or third-party online seller by a
hotel or short-term rental, or agent acting on behalf
of such hotel or short-term rental, and such
information was inaccurate at the time it was provided
to the intermediary or third-party online seller; and
(B) took prompt action to remove or correct any
false or inaccurate information about the total
services price after receiving notice that such
information was false or inaccurate.
(c) Preemption.--
(1) In general.--A State, or political subdivision of a
State, may not maintain, enforce, prescribe, or continue in
effect any law, rule, regulation, requirement, standard, or
other provision having the force and effect of law of the
State, or political subdivision of the State, that prohibits a
covered entity from advertising, displaying, marketing, or
otherwise offering, or otherwise affects the manner in which a
covered entity may advertise, display, market, or otherwise
offer, for sale in interstate commerce, including through a
direct offering, third-party distribution, or metasearch
referral, a price of a reservation for a covered service that
does not include each mandatory fee.
(2) Rule of construction.--This section may not be
construed to--
(A) preempt any law of a State or political
subdivision of a State relating to contracts or torts;
or
(B) preempt any law of a State or political
subdivision of a State to the extent that such law
relates to an act of fraud, unauthorized access to
personal information, or notification of unauthorized
access to personal information.
(d) Definitions.--In this Act:
(1) Base services price.--The term ``base services price''
--
(A) means, with respect to the covered services
provided by a hotel or short-term rental, the price in
order to obtain the covered services of the hotel or
short-term rental; and
(B) does not include--
(i) any service fee;
(ii) any taxes or fees imposed by a
government or quasi-government entity;
(iii) assessment fees of a government-
created special district or program; or
(iv) any charges or fees for an optional
product or service associated with the covered
services that may be selected by a purchaser of
covered services.
(2) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(3) Covered entity.--The term ``covered entity'' means a
person, partnership, or corporation with respect to whom the
Commission has jurisdiction under section 5(a)(2) of the
Federal Trade Commission Act (15 U.S.C. 45(a)(2)), including--
(A) a hotel or short-term rental;
(B) a third-party online seller; or
(C) an intermediary.
(4) Covered services.--The term ``covered services'' means
the temporary provision of a room, building, or other lodging
facility.
(5) Hotel.--The term ``hotel'' means an establishment that
is--
(A) primarily engaged in providing a covered
service to the general public; and
(B) promoted, advertised, or marketed in interstate
commerce or for which such establishment's services are
sold in interstate commerce.
(6) Intermediary.--The term ``intermediary'' means an
entity that operates either as a business-to-business platform,
consumer-facing platform, or both, that displays, including
through direct offerings, third-party distribution, or
metasearch referral, a price for covered services or price
comparison tools for consumers seeking covered services.
(7) Optional product or service.--The term ``optional
product or service'' means a product or service that an
individual does not need to purchase to use or obtain covered
services
(8) Service fee.--The term ``service fee''--
(A) means a charge imposed by a covered entity that
must be paid in order to obtain covered services; and
(B) does not include--
(i) any taxes or fees imposed by a
government or quasi-government entity;
(ii) any assessment fees of a government-
created special district or program; or
(iii) any charges or fees for an optional
product or service associated with the covered
services that may be selected by a purchaser of
covered services.
(9) Short-term rental.--The term ``short-term rental''
means a property, including a single-family dwelling or a unit
in a condominium, cooperative, or time-share, that provides
covered services (either with respect to the entire property or
a part of the property) to the general public--
(A) in exchange for a fee;
(B) for periods shorter than 30 consecutive days;
and
(C) is promoted, advertised, or marketed in
interstate commerce or for which such property's
services are sold in interstate commerce.
(10) State.--The term ``State'' means each of the 50
States, the District of Columbia, and any territory or
possession of the United States.
(11) Third-party online seller.--The term ``third-party
online seller'' means any person other than a hotel or short-
term rental that sells covered services or offers for sale
covered services with respect to a hotel or short-term rental
in a transaction facilitated on the internet.
(12) Total services price.--The term ``total services''--
(A) means, with respect to covered services, the
total cost of the covered services, including the base
services price and any service fees; and
(B) does not include--
(i) any taxes or fees imposed by a
government or quasi-government entity;
(ii) any assessment fees of a government-
created special district or program; or
(iii) any charges or fees for an optional
product or service associated with the covered
services that may be selected by a purchaser of
covered services.
(e) Effective Date.--The prohibition under subsection (a) shall
take effect 450 days after the date of the enactment of this Act and
shall apply to advertisements, displays, marketing, and offers of
covered services of a covered entity made on or after such date.
Calendar No. 478
118th CONGRESS
2d Session
S. 2498
_______________________________________________________________________
A BILL
To prohibit unfair and deceptive advertising of prices for hotel rooms
and other places of short-term lodging, and for other purposes.
_______________________________________________________________________
August 1, 2024
Reported with an amendment