Prohibition on unfair and deceptive advertising of hotel rooms and other short-term lodging prices

(a)

Prohibition

(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). (2)

Individual components

Nothing in this Act shall be construed to prohibit the display of— (A)individual components of the total price; or (B)details of taxes or other items not required by paragraph (1). (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 of a decision in the civil action. (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)

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. (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. (c)

Definitions

In this section: (1)

Commission

The term Commission means the Federal Trade Commission. (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. (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. (4)

State

The term State means each of the 50 States, the District of Columbia, and any territory or possession of the United States. (d)

Effective date

(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. (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).