[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