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)

Affirmative defense

In any action pursuant to paragraph (1) or (2), an intermediary or third-party online seller may assert an affirmative defense if such intermediary or third-party online seller— (A)established procedures to receive up-to-date price information from hotels or short-term rentals, or agents acting on behalf of a hotel or short-term rental;(B)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(C)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, and that requires fee disclosure, unless such provision requires the total services price to include each service fee in accordance with subsection (a)(1). (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—(A)means the temporary provision of a room, building, or other lodging facility; and (B)does not include the provision of a meeting room, banquet services, or catering services.(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.