[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4489 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 4489
To prohibit unfair and deceptive advertising of rates for hotel rooms
and other places of short-term lodging.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 25, 2019
Ms. Johnson of Texas (for herself, Mr. Fortenberry, and Ms. Bass)
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 2019''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) As of the day before the date of the enactment of this
Act, hotel rooms 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
charged 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 that 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)(2) of such Act (15
U.S.C. 45(a)(2)).
(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
RATES.
(a) Prohibition.--No person with respect to whom the Federal Trade
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 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 Federal Trade 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
Federal Trade 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 Act--
(1) the term ``place of short-term lodging'' means a hotel,
motel, inn, or other place of lodging that advertises at a rate
that is a nightly, hourly, or weekly rate; and
(2) the term ``State'' includes any territory of the United
States, the District of Columbia, and the Commonwealth of
Puerto Rico.
(e) Effective Date.--Subsection (a) shall take effect on the date
that is 30 days after the date of enactment of this Act.
<all>