Hotel Advertising Transparency Act of 2022
This bill requires hotels, and other places of short-term lodging, to include all required fees in the advertised rate.
This requirement may be enforced by the Federal Trade Commission, state attorneys general, and other authorized state officials.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8261 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 8261
To prohibit unfair and deceptive advertising of rates for hotel rooms
and other places of short-term lodging.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 1, 2022
Ms. Johnson of Texas (for herself and Mrs. Trahan) introduced the
following bill; which was referred to the Committee on Energy and
Commerce
_______________________________________________________________________
A BILL
To prohibit unfair and deceptive advertising of rates for hotel rooms
and other places of short-term lodging.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Hotel Advertising Transparency Act
of 2022''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) As of the day before the date of the enactment of this
Act, hotel rooms, short-term rentals, and other places of
lodging are often advertised at a rate and later in the buying
process mandatory fees are disclosed that were not included in
the advertised room rate.
(2) The mandatory fees described in paragraph (1) are
sometimes called by names such as ``resort fees'', ``cleaning
fees'', or ``facility fees'' and they are all mandatory and
charged by a place of short-term lodging in addition to
advertised room rates.
(3) The number of short-term lodging facilities that charge
mandatory resort fees is growing.
(4) Advertising that does not reflect the true mandatory
cost of a stay at a place of short-term lodging is deceptive.
(5) The Federal Trade Commission has authority under
section 5 of the Federal Trade Commission Act (15 U.S.C. 45) to
regulate and prohibit unfair or deceptive acts or practices in
or affecting commerce.
(6) In 2012 and 2013, the Federal Trade Commission
exercised its authority under such section 5 to issue warning
letters to 35 hotel operators and 11 online travel agents. In
those letters, the Commission cautioned hotel operators and
online travel agents that mandatory resort fees could confuse
consumers in violation of section 5(a) of such Act (15 U.S.C.
45(a)).
(7) In 2017, an economist at the Federal Trade Commission
published an issue paper that found that forcing consumers to
click through additional webpages to see a hotel's resort fee
increases the time spent searching and learning the hotel's
price, and went on to state the following: ``Separating the
room rate from the resort fee increases the cognitive costs of
remembering the hotel's price. When it becomes more costly to
search and evaluate an additional hotel, a consumer's choice is
either to incur higher total search and cognitive costs or to
make an incomplete, less informed decision that may result in a
more costly room, or both.''.
SEC. 3. PROHIBITION ON UNFAIR AND DECEPTIVE ADVERTISING OF HOTEL ROOM
AND OTHER SHORT-TERM LODGING RATES.
(a) Prohibition.--No person with respect to whom the Commission is
empowered under section 5(a)(2) of the Federal Trade Commission Act (15
U.S.C. 45(a)(2)) may advertise in interstate commerce, including
through direct offerings, third-party distribution, or metasearch
referrals, a rate for a place of short-term lodging that does not
include all required fees, excluding taxes and fees imposed by a
government.
(b) Enforcement by Federal Trade Commission.--
(1) Unfair or deceptive acts or practices.--A violation of
subsection (a) by a person subject to such subsection 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)).
(2) Powers of commission.--
(A) 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. 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.).
(B) Rulemaking.--
(i) In general.--The Commission may
promulgate such rules as the Commission
considers appropriate to enforce this section.
(ii) Procedures.--The Commission shall
carry out any rulemaking under clause (i) in
accordance with section 553 of title 5, United
States Code.
(c) Enforcement by States.--
(1) In general.--In any case in which the attorney general
of a State has reason to believe that an interest of the
residents of the State has been or is threatened or adversely
affected by the engagement of any person subject to subsection
(a) in a practice that violates such subsection, 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.
(2) Rights of federal trade commission.--
(A) Notice to federal trade commission.--
(i) In general.--Except as provided in
clause (iii), the attorney general of a State
shall notify the Commission in writing that the
attorney general intends to bring a civil
action under paragraph (1) before initiating
the civil action against a person subject to
subsection (a).
(ii) Contents.--The notification required
by clause (i) with respect to a civil action
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 clause (i) before
initiating a civil action under paragraph (1),
the attorney general shall notify the
Commission immediately upon instituting the
civil action.
(B) Intervention by federal trade commission.--The
Commission may--
(i) intervene in any civil action brought
by the attorney general of a State under
paragraph (1) against a person described in
such paragraph; and
(ii) upon intervening--
(I) be heard on all matters arising
in the civil action; and
(II) file petitions for appeal of a
decision in the civil action.
(3) Investigatory powers.--Nothing in this subsection 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.
(4) Effect on state court proceedings.--Nothing in this
subsection shall be construed to prohibit an authorized State
official from proceeding in State court on the basis of an
alleged violation of any general civil or criminal statute of
such State.
(5) Coordination with federal trade 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 paragraph (1)
against any defendant named in the complaint of the Commission
for the violation with respect to which the Commission
instituted such action.
(6) Venue; service of process.--
(A) Venue.--Any action brought under paragraph (1)
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.
(B) Service of process.--In an action brought under
paragraph (1), process may be served in any district in
which the defendant--
(i) is an inhabitant; or
(ii) may be found.
(7) Actions by other state officials.--
(A) In general.--In addition to civil actions
brought by attorneys general under paragraph (1), any
other officer of a State who is authorized by the State
to do so may bring a civil action under paragraph (1),
subject to the same requirements and limitations that
apply under this subsection to civil actions brought by
attorneys general.
(B) Savings provision.--Nothing in this subsection
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.
(d) Definitions.--As used in this section--
(1) the term ``Commission'' means the Federal Trade
Commission;
(2) the term ``place of short-term lodging'' means a
hotel, motel, inn, short-term rental, or other place of lodging
that advertises at a rate that is a nightly, hourly, or weekly
rate; and
(3) the term ``State'' means any of the several States, the
District of Columbia, and any territory of the United States.
(e) Effective Date.--Subsection (a) shall take effect 270 days
after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Energy and Commerce.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line